MARYLAND COMMISSIONER
OF FINANCIAL REGULATION
CONSUMER ADVISORY
MAY 6, 2020
BEWARE OF COVID-19 FINANCIAL FRAUD AND SCAMS
Protect yourself and your loved ones from financial fraud and scams that prey on the concerns and
financial vulnerability of the public due to the COVID-19 pandemic. Educating yourself to the potential
risks and utilizing fact-checked information from trusted sources are the keys to protecting your financial
and physical wellbeing.
This advisory describes how you can protect yourself from COVID-19 fraud and provides information
about two common scams: stimulus check fraud and student loan relief scams.
How to Avoid Fraud and Scams
Be careful of “imposter scams” – emails, phone calls, or other solicitations from fraudsters posing
as government agencies or debt collectors in an attempt to scam you out of your unemployment
benefits and stimulus payments.
Steps that you can take to protect yourself include:
Use caution when opening any email related to COVID-19 and be wary of social media ads, texts,
or unknown phone calls. Avoid clicking on links in unsolicited emails and be wary of attachments.
Email scammers will try to create a sense of urgency or fear in victims and may infect your phone
or computer with viruses and malware.
Use trusted sources such as legitimate government websites for the most up-to-date fact-based
information about COVID-19. Social media should not be relied upon as your primary source of
trusted information.
Do not reveal personal or financial information in an email or over the phone, and do not respond
to solicitations for this information.
If a debt collector contacts you, they must tell you the name of the creditor and the amount owed.
If you dispute the debt, the debt collector will have to obtain verification of the debt. If the debt
collector does not provide this information during the initial contact with you, they’re required to
send you a written notice within five days of that initial contact.
Always confirm the legitimacy of a charity before making donations by contacting the charity
directly or otherwise verifying the charity’s existence through the Maryland Secretary of
State or Internal Revenue Service. Do not donate if you feel pressured by the solicitor or if they
insist on a cash donation.
Stimulus Check Fraud
Check your check – small details make a big difference! Protect yourself by learning about the
security features on your stimulus check. If you receive a stimulus check in the mail from the federal
government (also called the "economic impact payment"), be sure to confirm its authenticity. Fraudsters
want to take advantage of these payments to scam citizens out of their money.
There are several features to look for on your check to ensure it is not counterfeit. A legitimate check
should have: bleeding ink when moisture is applied to the seal, a unique U.S. Treasury watermark,
ultraviolet overprinting on the front of the check, and micro-printing on the back of the check that is only
visible when magnified.
See the "Know Your U.S. Treasury Check Campaign" to learn more about your check’s security features
and where to report COVID-19 stimulus check fraud.
Student Loan Relief Scams
Beware of companies or fraudsters posing as purported “government agencies” contacting you by email,
text or phone calls promising to help with student loan relief or resolve issues on your behalf. Here are
some tips to avoid student loan repayment scams:
Never pay an upfront fee. It’s illegal for companies to charge you in advance before helping you
to reduce or eliminate your student loan debt. Do not pay any company an upfront fee. Paying a
company a fee is no guarantee that they will be successful in getting assistance for you. If you do
pay an upfront fee you might lose your money.
Only scammers promise fast loan forgiveness. Scammers might say they can quickly get your
loans forgiven through a loan forgiveness program but they can’t.
Don’t share your Federal Student Aid (FSA) ID with anyone. Scammers could use it to take
control of your personal financial aid information on U.S. Department of Education websites.
Contact Our Office
The Office of the Commissioner of Financial Regulation, a division of the Maryland Department of
Labor, is Maryland's banking and financial services regulatory agency. For more information about our
Office, please visit our website at labor.maryland.gov/finance.
If you believe you are a victim of a financial scam related to mortgages, collections, credit services
or student loan debt, contact our office by email at DL[email protected] or
by phone at 410-230-6077 to file a fraud reporting form.
