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Weight-Loss Drug Craze: One of the Internet’s Largest Scams

Photo credit: www.cnbc.com

A production line of Wegovy injection pens for the Asian market is currently operational at the Novo Nordisk A/S pharmaceutical manufacturing facility in Hillerod, Denmark, as of November 27, 2024.

The surge in demand for popular weight-loss medications from Eli Lilly and Novo Nordisk has created fertile ground for fraudulent activities. As more Americans are prescribed these injectables—Ozempic and Mounjaro for type 2 diabetes, and Wegovy and Zepbound for obesity—the manufacturers are struggling to meet the overwhelming need. Many individuals are also seeking these products without prescriptions, identifying them as “vanity drugs” to assist in weight loss. This combination of factors, coupled with high costs and limited insurance coverage, has complicated the drug market.

This unique situation has led to the emergence of a convoluted online marketplace for compounded versions of these medications. The Food and Drug Administration (FDA) allows such practices when specific proprietary ingredients are in short supply, but this has also opened the door to various scams claiming to offer both legitimate and counterfeit drugs on both websites and social media channels.

There are reports of consumers receiving mislabeled or counterfeit medications from unauthorized vendors, as well as instances where individuals have received nothing after paying significant sums for these products. Notably, Novo Nordisk reported to CNBC that, as of mid-November, the company has been made aware of 14 deaths and 144 hospitalizations connected to individuals who used compounded semaglutide, the active ingredient in Ozempic and Wegovy. In response, the company has urged the FDA to prohibit the sale of these unauthorized copies.

Over the past year, investigations by cybersecurity experts and consumer protection advocates have revealed numerous accounts on platforms such as TikTok, Facebook, and Instagram that are involved in these fraudulent activities. In May, a report by the Digital Citizens Alliance and the Coalition for a Safer Web detailed how consumers are actively seeking GLP-1 medications through social platforms, despite TikTok facing potential restrictions in the U.S.

The report highlighted that scammers frequently offer these medications for prices significantly lower than the market rate—between $200 and $400 for a month’s supply—while demanding payment via platforms like Zelle and Venmo to elude detection.

Eric Feinberg, vice president of content moderation for the Coalition for a Safer Web, remarked, “Scammers exploit human desire, especially the current obsession with weight loss, to target individuals online.” Investigators also uncovered tactics where scammers claim deliveries are held in customs, requiring additional funds to proceed, showcasing the devious methods employed in these scams.

The Expansive Scope of Online Scams

In tracking activities over the first quarter of the year, McAfee’s Threat Research Team identified rampant online scams surrounding Ozempic and semaglutide, amounting to 449 risky website URLs and nearly 177,000 phishing attempts during that time. This marks a stark increase compared to late 2023. Continual monitoring by the cybersecurity firm has revealed over 367,000 phishing attempts, with increased visibility of risky URLs over recent months.

Research published in August by JAMA Network Open highlighted the extensive market of illicit online pharmacies selling semaglutide. Over 42% of the 317 pharmacies surveyed were found to be operating unlawfully, lacking valid licenses and selling medications without required prescriptions.

Another investigation by CNBC examined the counterfeit drug trade, documenting seizures of fake Ozempic pens in the UK and revealing that drug manufacturers like Eli Lilly have encountered unauthorized market entries for drugs still in clinical trials.

Counterfeit GLP-1s primarily originate from countries like India, China, and Mexico, and have been intercepted en route to the U.S., with the U.S. Customs and Border Protection reporting over 198 seizures since January 1 of products falsely labeled as Ozempic.

In light of the alarming rise in fraudulent activities, platforms like TikTok and others have ramped up measures to curtail illegal sales by employing both manual monitoring and algorithmic detection of suspicious behavior. TikTok has reiterated its commitment to enforcing community guidelines that ban the sale of drugs and fraudulent practices.

Despite these efforts, many scammers manage to reestablish their presence under different aliases or by manipulating spelling, often instructing potential buyers to transfer discussions to encrypted platforms for anonymity.

Tom Galvin, executive director of Digital Citizens Alliance, has likened online social platforms to modern street corners for drug trade, emphasizing the challenges of constantly adapting to evade new countermeasures.

Currently, the FDA is scrutinizing the burgeoning compounding industry in light of reported abuses, underscoring the dangers of purchasing prescription drugs from unregulated sources without medical supervision. The agency continues to remind consumers to exercise caution when seeking medications online.

As of May, a study revealed that around 12% of adults had engaged with GLP-1 drugs, with a considerable number acquiring them through conventional healthcare providers as opposed to dubious online platforms. Nonetheless, an undisclosed number of individuals are likely obtaining these medications illicitly through online channels that bypass regulation.

Despite the crackdown on sellers, social media influencers have promoted GLP-1 drugs extensively, often backed by telehealth companies, contributing to public interest and engagement with these medications.

As pharmaceutical companies like Lilly and Novo Nordisk combat counterfeit products and illegal sales, they are simultaneously enhancing their production capacities to meet surging demand. With both companies investing heavily in expanding manufacturing capabilities, the market dynamics surrounding GLP-1 medications continue to evolve.

As public awareness grows about the potential benefits of these drugs for various conditions beyond diabetes and obesity, including cardiovascular health and companionship with other chronic diseases, the demand for GLP-1s is forecasted to remain robust. This ongoing demand will challenge regulatory bodies and online platforms to keep pace with effective solutions for consumer protection in this rapidly changing landscape.

Source
www.cnbc.com

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