Scams. They are as old as medicine itself.
Fraudsters prey on people's fears and concerns by pretending they have a wonder drug or access to a restricted item, then offer it up for sale at a premium. The COVID-19 pandemic seemed to check all the boxes -- especially vaccines, when it comes to criminals trying to take advantage of the system. A real-life miracle drug that prevents a real life pandemic, and not enough to go around.
Already we've heard of cases from Florida to New York of attempts to steal vials of the COVID vaccines. In China and South Africa, INTERPOL seized thousands of doses of counterfeit vaccines. On March 24, Homeland Security Investigations (HSI) and INTERPOL issued a joint public warning: "Be vigilant, be skeptical, be safe'" -- to explain the latest scams out there, how they work and how to keep from falling prey.
Mike Alfonso is assistant special agent in-charge at HSI -- an arm of ICE -- and coordinator for the agency's COVID-19 vaccine investigations. He joins us on this week's episode to explain what the latest scams are, how they work, and what you should know to protect yourself.
The following is a transcript of his interview with "Track the Vax" host Serena Marshall:
Marshall: Mike, before we talk about all of these different cases of vaccine fraud that you're seeing, let's explain for those who may not be familiar, why ICE, Immigration and Customs Enforcement, is leading this charge. When you think immigration, you don't think about combating fraud?
Alfonso: So Serena, I actually worked for Homeland Security Investigations, which is the investigative arm of ICE. It's the investigative arm of the Department of Homeland Security and we specifically focus on criminal investigations.
ICE is an agency that's made up of two different agencies. When Homeland Security was formed in 2003 it merged the U.S. Customs Service and the Immigration and Naturalization Service. And the Customs Service historically has worked counterfeit and fraud type of cases, financial type of cases.
So when Homeland Security Investigations was created we took that on. And we are working these types of cases at the [National] Intellectual Property Rights Center, which specifically is geared towards trade and protecting the public safety and the public's health on what comes into and what leaves the country.
We work these investigations with several different agencies, including the FBI, but the IPR center, where I work currently, has 25 different agencies. And we all collaborate together on a common goal of protecting the public health, public safety and like I said, looking at what comes into and out of the United States.
Marshall: And you guys have launched an entire operation just to combat vaccine fraud, Operation Stolen Promise. Can you tell us about that?
Alfonso: We launched Operation Stolen Promise, not only related to vaccine fraud, but related to all COVID fraud. So early on we realized that with the pandemic, there was going to be a significant amount of fraud. And we brought in all of our different disciplines. We brought in our investigators, we brought in our cyber folks, our financial divisions, and we all work together under Operation Stolen Promise.
And it includes all parts of COVID and includes our PPE and it includes loan fraud and includes the vaccines. It includes therapeutics. So it's a multi-agency standpoint to go after any fraud related to COVID-19.
Marshall: And what is it specifically you're looking at when it comes to vaccine fraud?
Alfonso: So in particular for vaccines, we had a lot of heads up, which was good. We knew that vaccines were coming months in advance. So about four months before the vaccines were finally approved, we were ready for it. We were prepped for it. We were in regular contact with the pharmaceutical companies and we knew what to expect.
We knew there was going to be a cyber element to the fraud; we knew there was the potential for counterfeits. So we were prepped. We also met and worked with scientists and doctors and academia, who knew and studied vaccines and studied this issue for years. So we had prepped and we were ready for this to come out.
Marshall: Is that a little different for you, Mike, knowing to expect fraud uptick for something? Being prepared that much in advance?
Alfonso: Yeah, it was a little unusual and it was also a little unusual that we worked so closely with medical professionals. We work, as federal agents, we work in the law enforcement field. So we typically don't work as much with medical professionals and professors, but in this case, right from the get go we were in touch with some of the best research scientists, some of the best immunization research specialists in the world. And really learning what they knew about the vaccines so we could gear our investigations for when the vaccines actually came out.
Marshall: How does that collaboration work?
Alfonso: At the beginning, it was a lot of cold calls and also reaching out to different professionals, people that we had known or seen in either print or social media, or just experts in the field. We reached out to them and said: "Hey, you know, we know this is coming. We know the vaccines are coming out soon. We want to be prepared. Can you please help us? We need to collaborate with you."
And they were very open-armed to us. We had numerous discussions. We had virtual calls, virtual meetings where they brought us in and they showed us: 'Hey, this is how vaccines are developed. These are the different vaccines that are out there and this is what you should look for.'
And it wasn't only done domestically. We also spoke with professors and doctors in foreign countries, as well. In particular with the University of Oxford and different places like that.
Marshall: Now, I'm sure you can't give us too much detail. We don't want to tip off the fraudsters on what you're doing exactly. But can you tell us what they did tell you to expect?
Alfonso: So they gave us an understanding of the types of vaccines that were out there. How they work, how they impact the body and the different companies that were developing them. So then we could go to those companies and say, "This is the type of vaccine you have," and we could work with their pharmaceutical departments. And really be educated instead of going in and just saying; hey, Pfizer is making a vaccine.
We actually understood the vaccine. We understood the science behind it, how it affects the body, how it's distributed, the supply chain in particular. Is it cold-chain related? You know, what are the requirements for when it's stored, when it's moved, when it's actually given to an individual. So we knew all of that from right from the front.
Marshall: And how does that help you when it comes to combating cases of fraud or illicit activity? Do you then say: Oh, well, because it requires this cold chain supply, we might see people stealing trucks?
Alfonso: We knew how it had to be shipped. We knew that there was special packaging that had to be required. And we're able to look at that packaging and work with the security departments from the different pharmaceutical companies and get a firsthand view of how it's packed, how it's shipped, how it's delivered.
And we could work with the inspectors and the agents and the officers at the borders to make sure that if we see something that's not exactly how it should be, because we know it requires this unique cold chain, that it would be detained. And we could work with the pharmaceutical companies to determine if it was counterfeit or if it was a legitimate vaccine.
Marshall: Now in a statement you had said that you expected a surge in illicit attempts to introduce counterfeit versions of approved vaccines into the U.S. and global marketplaces. Recently, we know that you guys teamed up with INTERPOL and issued a warning. The Department of Homeland Security did. What has brought this renewed urgency when it comes to this vaccine fraud, is it simply because more vaccines are now being distributed?
Alfonso: Anytime there's a huge demand and a limited supply, unfortunately, criminals take advantage of that. We have seen an uptick in some counterfeits overseas, but I want to let you know, Serena, the supply chain in the United States for the vaccine is very secure. I've seen no counterfeit vaccines in the United States to date. Although they have seen them overseas in several countries. We feel that the supply chain is very secure here. We have a lot of different law enforcement and medical professionals making sure that it stays that way. And I'm very confident that it will stay that way, Serena.
Marshall: It's such an important point, Mike. But you did mention, you have seen some of that overseas. We know that in China and South Africa, they seized thousands of doses of counterfeit COVID-19 vaccines. What do you do to ensure those don't make it into the U S?
Alfonso: Yeah, Serena, we've seen it overseas. We've also seen it in Mexico. We worked very closely with our overseas offices. So we have HSI special agents in countries throughout the world. We're in regular contact with the countries that I've seen the counterfeit vaccines. Making sure that any intelligence that's out there related to those vaccines, the lot numbers, how they're packaged, what they look like, those pictures, information.
We get that out to the agents and the officers at the borders, to the HSI special agents and the CBP officers at the border. To make sure that they're aware of what's out there and to keep a look for possible counterfeits or possible fraud. We distribute that intelligence to our officers and agents at the ports of entry.
Marshall: And just to be clear so far, you haven't seen any of those fraudulent type of vaccines trying to make it into the U.S.?
Alfonso: So to date, Serena, I have not seen any counterfeits in the United States to date. That's correct.
Marshall: Not even confiscated, not even you guys identifying them on the ground and being able to grab them?
Alfonso: I've seen zero counterfeit vaccines in the United States.
Marshall: Wow. That is quite the coup there for you guys.
Alfonso: Yeah. You know and Serena, I think it's a credit to, like I said, a lot of different medical professionals and a lot of different law enforcement officers. And to the military, the Department of Defense, that have all worked together to make sure that the supply chain is secure.
Marshall: Now there are other types of fraudulent activity, though. We kind of think of it in terms of perhaps two main buckets, right? You have the fraud vaccines, but then also people try to take advantage of the system surrounding the vaccine distribution. Theft of vaccines, things like that. What types of those cases have you guys come in to contact with?
Alfonso: I tell you Serena, the first thing we really saw related to the vaccines, and this is almost immediately, when we heard that Pfizer was going to be the first one with an approved vaccine and Moderna shortly thereafter. We saw the cyber-fraud is the first thing we saw. We saw the fake websites pop up with misinformation, attempting to steal the PII [personal identifiable information] of consumers.
When the vaccines were being produced, everybody wanted information about them. Everybody wanted to get their hands on them. It was very limited supply, at that point. So we saw the cyber fraud. And that's the first thing we really focused on -- these fake websites that were popping up related to the pharmaceutical companies and making sure that we criminally or administratively pulled those websites offline so consumers weren't duped or fraudulent information wasn't out there for the public. That's really the first thing that we saw.
Marshall: I saw some of those, in December, there was an announcement, they just do a one letter change perhaps in the website.
Alfonso: Yeah, that's correct, Serena. The thing we saw was the fake websites. The second thing we really saw was the fake websites that offer the vaccine for sale. And then we saw a whole host of cyber frauds where websites on both the open, the clear web, and the dark web offered the vaccine for sale.
I think now is a good time to tell everybody that there is no vaccine available for sale online. You cannot buy the vaccine. You can't jump the line and buy the vaccine. There's nothing available for sale online. So, please, if you're listening to this, be aware of that.
Marshall: What kind of sale on the dark web would somebody come across?
Alfonso: At any given time, we're investigating dozens of different dark web vendors that are offering not only U.S.-based vaccines, but foreign based vaccines. AstraZeneca we've seen available on the dark web. And different prices as well. You know, anywhere from a few dollars, $50, up to thousands of dollars to purchase the vaccines on the dark web. All the different companies that make the vaccines are available for sale on the dark web. But it is all fraud.
Marshall: None of it's real?
Alfonso: We have not seen any real vaccine on the dark web or on the open web being offered for sale.
Marshall: Mike, when you see one of those fake websites, how long does it take to pull it down?
Alfonso: So that's a good question. And it really depends. It depends on where the website is hosted. And it depends how we go about it.
We have two main methods. Sometimes we'll pull them down administratively. Sometimes we'll pull them down criminally. I could tell you from working on this project for about the last six months, myself personally, we've pulled them down in as fast as five hours.
So we're either notified by a pharmaceutical company or we find the website ourselves. We've pulled them down as quickly as five hours. Sometimes it'll take a few days, but we've been very successful in pulling down these fake or counterfeit websites.
Marshall: And is the full goal of those fake websites to just steal personal information then?
Alfonso: It depends, Serena. Sometimes it's to steal information. Sometimes it's to steal money from individuals. For example, some of the websites that we saw that were offering the vaccine for sale, you could click on that link and be redirected and you could quote unquote, pay for the vaccine. We as law enforcement, we engage those sites since we know that they're fraud.
And we do sometimes make payments to identify who's behind those websites, to identify the bank accounts, to identify the PayPal accounts and to go after those individuals. And we've been successful in actually arresting some of the individuals that have created these fake websites and are stealing not only PII, but also real money from people..
Marshall: Where do you see most of those fake sites originating from?
Alfonso: It can be anywhere, Serena. We've seen them originating from the United States. We see them originating from foreign countries, you know, as far away as Africa. So it could be as close to miles or thousands of miles away, but we've seen the full array of fake websites.
Marshall: And you're able to define those bad actors through your essentially, sting operations. Is that what this would be classified as?
Alfonso: We have a cyber unit called the Cyber Crime Center within HSI. That's their job. Their job is to look at those websites. Where they were created, how they were created. And then we look at the flow of money. If money is interacted or exchanged with those individuals, you know, what bank accounts does that money bounce off of? So, you know, we are criminal investigators. That is our job to track the money and to track the people behind those keyboards.
Marshall: How much money have they been able to steal?
Alfonso: You know that that's hard to say because we don't know who all of the fraudsters are out there. You know, that it's a difficult number to quantify and it's difficult because some people don't come forward when they're scammed. They pay for the vaccine, they don't get the vaccine and they never get their money back. I mean, not all of those cases are reported to us.
Marshall: We've heard cases though of, you know, just last month in Mexico, for example, of vaccine doses being stolen. We know from Florida to New York, there have been people trying to redirect, perhaps, or falsify forms to steal doses of those vaccines. So how do you ensure that 1) those vaccines don't get stolen and 2) that they don't make it into the dark web?
Alfonso: There's been very, very few cases, Serena, of stolen vaccines. In some of the cases in the United States where they've talked about stolen vaccines, vehicles have actually been stolen and they weren't specifically targeting the vaccine. There has been a very small amount of misdirected vaccines. There was a concerted effort within the United States government to secure the vaccines. Federal law enforcement is being used to help transport and protect the vaccine. In some cases there's technologies out there that are being used by law enforcement and government to make sure that the vaccine that's out there is secure. It's all hands on deck as far as law enforcement to make sure that it remains a secure supply chain.
Marshall: So people should be really secure in the supply chain and in the actions -- the whole-government approach to ensuring the security of vaccines. Is this different?
We know it's the largest mass vaccination campaign in American history, but is this security aspect different than anything you guys have done before?
Alfonso: So I've been in law enforcement just over 20 years. And this is a unique project because of that whole-government approach. It is really all hands on deck. Everybody collaborates. There's a team that every morning we have briefings related to this. If there are any instances of a vaccine that's misplaced or potentially stolen notifications go out, teams look into it. Investigators from multiple agencies are notified. It is unusual, all hands on deck approach for COVID related fraud.
Marshall: So far Mike, it sounds like you guys have been incredibly successful. And, to be perfectly blunt, that's not something most people would expect when it comes to a mass distribution program like this. I mean, how were you able to be so successful in this? Can you give us a little bit of insight into the process?
Alfonso: I think, Serena, one of the biggest things we had going for us, we were able to be very proactive because we knew the vaccine was coming out. A lot of times in law enforcement, unfortunately, we're reactive. Something happens and we need to react to it. In this case we knew months in advance the vaccine was coming out. Like I had said before, we were prepared, we had studied it and we had met with all the right people and, and all branches of the government, both the law enforcement side and the medical side collaborated on this effort.
Marshall: But certainly there have been challenges. So what were some of those and what did you learn?
Alfonso: I mean there's challenges in law enforcement all the time. Whenever you have a major operation like this and multiple different types of fraud, you have to come together, you have to work together. And when new things pop up, you have to adapt to them and be ready for them. And I think we were. I think we were ready for the cyber angle.
I don't think we anticipated as many people offering the vaccine for sale online as we saw early on, but we adapted. We sent those leads out to the field. We were able to shut those sites down quickly. We wanted to make sure the public knew that it was safe. That anything they saw online was likely fraudulent.
And to make sure that they looked at the right places, make sure they talk to their states, they talk to healthcare providers, they talk to their doctors when they had questions about the vaccine and getting the vaccine.
Marshall: What does that relationship look like, especially when it comes to intellectual property? You're looking a lot at the actual physical vaccines, preventing the fraud of the physical vaccines, preventing the fake websites, but then there's also that intellectual property angle, making sure the formula for the vaccines doesn't fall into the wrong hands. Are you involved in that side as well?
Alfonso: There's processes to record their trademarks and their patents. We know about those processes. We regularly work hand in hand with the security divisions of those companies to make sure that if they see something or we see something, we work together to make sure that we protect their intellectual property. And really, our goal is to protect the trade coming into and leaving the United States, to make sure that the public is safe.
Marshall: Mike, as more vaccines become available will we see some of these scams go away? Right now, there's that supply-demand question that you mentioned can lead to some of these scams, but if everybody has access to it and anybody can get the vaccine when they want to get the vaccine, will that deter criminal activity?
Alfonso: I think, Serena, criminal activity will change. So I could tell you the fraud that we're now seeing, that we did not see early on is the post-vaccine fraud surveys. And it's text messages and emails that are going out to consumers that say you received the vaccine, for research purposes, please fill out this survey.
And as a prize, we'll give you an iPad or we'll give you a $90 cash or a thousand dollars cash. We've seen them related to Pfizer, Moderna and Johnson and Johnson. I want the public to be aware that those are frauds! Do not fill out those surveys, do not click on those links. They are not true. None of those three companies have accurate or real surveys.
Marshall: Oh, so that's interesting. So there's, after you get the vaccine, somehow they know you've gotten the vaccine or is this just a mass attempt at text messaging?
Alfonso: That's exactly what it is, Serena. It's a blanket survey that goes out. It's gone out both via text message and email to thousands of individuals asking them to fill out these post vaccine research surveys.
Another thing we're seeing, Serena, related to the surveys is they say, fill it out, provide your credit card information. All you need to pay is shipping and handling, and then we'll send you an iPad or an electronic device, and will only cost you $20 or $40 for shipping and handling. Once you provide that information, they can easily steal your PII. They can, you know, hit your credit card with multiple charges. Go after your bank account. So please know that there are no real surveys out there.
Marshall: Are those survey scams originating globally?
Alfonso: All over the place, we've seen them widespread. We've seen some of the surveys offering small prizes. We've seen others offering thousands of dollars. I've recently saw one that offered $1,200 to fill out the survey.
Marshall: Wow, so you would only be getting a survey, so to speak, if you're actually enrolled in a clinical trial and that would actually come from your clinical trial manager?
Alfonso: Correct. The regular person that receives the vaccine at a state center will not receive a survey from Pfizer, from Johnson and Johnson or from Moderna.
Marshall: What other kinds of scams are you seeing that are kind of newer?
Alfonso: That's really the latest one we've seen, Serena, is the, the post-vaccine surveys. We're prepared for some other ones that I'm not going to go into, but that's the latest one we've seen. And we just want the public to be aware that that is a fake survey.
Marshall: That's good to know. And we've heard about people posting their COVID vaccine card selfies on the internet and law enforcement warning: "Hey, don't do that." Explain for our listeners why you shouldn't do that?
Alfonso: I mean any information or any card that has your PII on there? A lot of those vaccine cards have your date of birth on there or specific information on there. It's never a good thing because cyber criminals are looking for that. They're looking to steal that information. They could see that and say: "Hey, let's blast this individual with several surveys and see if we're lucky enough to see if they fill it out and we can steal additional PII from them."
Marshall: Even if you white out some of the PII, personally identifiable information, is it okay then to, you know, you want to let everyone know you got the vaccine? Or are we going to see those cards being for sale?
Alfonso: Yeah, I just don't think it's a good idea, Serena, to post those online. You know, it does have information about lot numbers related to the vaccine, where you got it from, the facility you went to, there's really no reason. You should be proud that you received the vaccine. I personally did receive it. But maybe you just don't post that up there. You just say: Hey, I got the vaccine. And if in the future there's a process, there's an app or a website that encrypts and downloads the information on it, and you use that to get into facilities or events in the future, you know, that's something you consider. But I never would say it's a good idea to post your vaccine card, or your driver's license or anything with your information online.
Marshall: We're starting to see vaccine mandates be rolled out. Rutgers just announced for students, they are going to require vaccination. Are you expecting a new wave of fraudulent activity around certifying vaccination? Where perhaps there wasn't any?
Alfonso: I think it's something that we'll be prepared for, Serena. There's going to be a fraud out there and unfortunately these criminals will take advantage of the situation. We'll be ready for it.
Marshall: It's a delicate rope that you walk, Mike. Going after the bad guys, urging caution and not dissuading vaccination.
Alfonso: It's a tightrope we walk. You know, letting the public know that there are frauds out there surrounding the vaccines, but the supply chain is very secure. It's important to get the vaccines. And if something comes up, you know, law enforcement is ready to address it.
If you think that you've been subjected to an illicit criminal activity or a fraudulent vaccine scheme, you can email DHS: COVID-19fraud@dhs.gov
https://www.medpagetoday.com/podcasts/trackthevax/91862
