New York Attorney General Letitia James Friday sent letters to a number of domain name registrars in an effort to stop the registration and use of domain names by individuals trying to unlawfully and fraudulently profit off consumers’ fears around the coronavirus disease 2019 (COVID-19). Over the last two months, the Office of the Attorney General (OAG) has seen a spike in coronavirus-related domains being registered for the purposes of deceptive advertising, phishing schemes, and malware dissemination.
“In this time of uncertainty, it’s more important than ever
that we remain cautious when it comes to companies and individuals selling
coronavirus-related products and services over the internet,” said Attorney
General James. “These scam sites are not only stoking fear in the hearts and
minds of Americans, but are profiting off their appalling deception. We need
all consumers to remain vigilant, as my office continues to work diligently to
take down these websites and ensure scammers, cons, and cheats are held
responsible for their unlawful actions. I encourage any individual with
information related to these scam sites to report them to my office
immediately.”
Since COVID-19 initially began to spread in January, the OAG
has discovered that cybercriminals have been registering a significant number
of domain names related to “coronavirus” and using those domains to conduct
phishing campaigns and other attacks. One independent study found that
three-percent of domains registered since January mentioning coronavirus have
been found to be actively malicious, with an additional five-percent
categorized as suspicious. These sites have not only marketed fake “treatments”
and “vaccines,” but have also potentially created fake “charities” and even
coronavirus-related investment opportunities for individuals to invest their
money in.
In light of this increase in cybercrime, Attorney General
James today sent letters to GoDaddy — the largest domain name registrar in the
United States — and five additional domain name registrars (Dynadot.com,
Name.com, Namecheap.com, and Registrar.com, as well as the Endurance
International Group, which owns Bluehost.com, Domain.com, and HostGator.com),
asking these companies to stop bad actors from taking advantage of the current
crisis, as well as commit to removing the scam domains.
The AG says the registration and creation of these
fraudulent websites could be a violation of multiple laws, including, but not
limited to, General Business Law § 349, Executive Law § 63(12), and the
Computer Fraud and Abuse Act, 18 U.S.C. § 1030, as well as the internet
registrars’ terms of service for domain registration.
Separately, in an effort to support New Yorkers in the fight
against the coronavirus, Attorney General James sent a letter to Craigslist.com
earlier today, calling on the company to immediately remove posts that attempt
to price gouge users, or otherwise purport to sell items that provide
“immunity” to the coronavirus or allow individuals to test for the disease.
Attorney General James has also already sent multiple cease
and desist letters to individuals and companies selling and marketing certain
products as treatments or cures for the coronavirus, including Alex Jones, The
Silver Edge company, Dr. Sherrill Sellman, televangelist Jim Bakker, and
others.
There is currently no Food and Drug Administration
(FDA)-approved vaccine to prevent the disease or treatment to cure it, and the
World Health Organization has also said that there is no specific medicine to
prevent or treat the coronavirus.
Additionally, Attorney General James has issued cease and
desist notifications to multiple businesses in New York for charging excessive
prices for hand sanitizers, disinfectant sprays, and rubbing alcohol — a
violation of New York’s price gouging statute. That statute prohibits the sale
of goods and services necessary for the health, safety, and welfare of
consumers at unconscionably excessive prices during any abnormal disruption of
the market.
The OAG continues to surveil and monitor businesses across
the state for potential scams and price gouging schemes designed to exploit
public concern related to the spread of the coronavirus. Scammers commonly
exploit real public health concerns and use heightened public fear to prey on
consumers and profit from frauds related to those health fears. If a consumer
believes they have been the victim of a scam or have witnessed potential price
gouging, they can report these incidents to the OAG.
Earlier this week, Attorney General James also announced
that the OAG will temporarily halt the collection of medical and student debt
owed to the State of New York and referred to the Office of the Attorney
General for collection, for at least a 30-day period between March 16, 2020
through April 15, 2020, in response to growing financial impairments resulting
from the spread of the coronavirus. Countless New Yorkers have been impacted —
directly or indirectly — by the spread of COVID-19, forcing them to forgo
income and business. After this 30-day period, the OAG will reassess the needs
of state residents for a possible extension. Additionally, the OAG will accept
applications for suspension of all other types of debt owed to the State of New
York and referred to the OAG for collection.
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