Aug 19, 2010
ITS A MYSTERY SHOPPER SCAM USING COUNTERFEIT CHECKS
2 articles below cover counterfeit checks and Mystery Shopping Scams
From the MYSTERY SHOPPERS SCAM article
In another version of the scam, consumers are “hired” to be mystery shoppers and told that their first assignment is to evaluate a money transfer service, like Western Union or MoneyGram. The shopper receives a check with instructions to deposit it in a personal bank account, withdraw the amount in cash, and wire it to a third party. By law, banks must make the funds from deposited checks available within days, but uncovering a fake check can take weeks. Individuals are responsible for the checks they deposit, so if a check turns out to be a fake, they are responsible for paying the bank back. It’s a good idea never to deposit a check from someone you don’t know, especially if the stranger asks you to wire money.
Giving The Bounce To Counterfeit Check Scams
http://www.ftc.gov/bcp/edu/pubs/articles/naps29.pdf
NAPS)—A new scam is swindling consumers: checks that seem legitimate to both bank employees and consumers, but that are counterfeit and leave unsuspecting consumers footingthe bill.
The Federal Trade Commission has a new brochure, “Giving the Bounce to Counterfeit Check Scams,” which explains common angles used in these scams, the responsibilities of banks and consumers when it comes to counterfeit checks, and advice on how to avoid them.
While the angles used by scam artists may vary, the basics of the counterfeit check scam remain the same.
The consumer receives a generous check with an explanation that he or she has just won an award, a prize, a lottery or some other windfall.
The consumer is instructed to deposit the check and wire a portion back to pay fees, taxes or the like. The consumer deposits the check, the bank credits the funds to the consumer’s account and the consumer wires the money to the sender.
Some time later, both the bank and the consumer learn the check was bogus. Unfortunately, the consumer is out of luck: The money that was wired can’t be retrieved and, by law, the consumer is responsible for the deposited check—even though he or she didn’t know it was fake.
The FTC advises consumers not to rely on funds from checks unless they know and trust the person who gave them the checkor, better yet, until the bank confirms that the check has cleared.
Other tips:
• Throw away any offer that asks you to pay for a prize or a
gift. If it’s free or a gift, you shouldn’t pay for it.
• Resist the urge to enter foreign lotteries. It’s illegal to play a foreign lottery through the mail or the telephone, and most foreign lottery solicitations are phony.
• Know who you’re dealing with and never wire money to strangers.
• If you’re selling something, don’t accept a check for more than the selling price, no matter how tempting the offer or how convincingthe story. Ask the buyer to write the check for the correct amount. If the buyer refuses to send the correct amount, return the check. Don’t send the merchandise.
• If you accept payment by check, ask for a check drawn on a local bank or a bank with a local branch. That way, you can make a personal visit to make sure the check is valid.
• If the buyer insists that you wire back funds, end the transaction immediately.
• Resist any pressure to “act now.” If the buyer’s offer is good now, it should be good after the check clears.
To file a complaint and for more information, visit www.ftc.gov.
The Secrets of Mystery Shopping Revealed
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt151.shtm
The Secrets of Mystery Shopping…
Revealed
Do you love to shop? If so, you may be tempted by unsolicited emails or newspaper ads that claim you can earn a living as a secret or mystery shopper by dining at elegant restaurants, shopping at pricey stores, or checking into luxurious hotels. But, according to the Federal Trade Commission (FTC), the nation’s consumer protection agency, marketers who promise lucrative jobs as mystery shoppers often do not deliver bona fide opportunities.
What is Mystery Shopping?
Some retailers hire marketing research companies to evaluate the quality of service in their stores; these companies use mystery shoppers to get the information anonymously. They assign a mystery shopper to make a particular purchase in a store or restaurant, for example, and then report on the experience. Typically, the shopper is reimbursed, and can keep the product or service. Many professionals in the field consider mystery shopping a part-time activity, at best. And, they add, opportunities generally are posted online by marketing research or merchandising companies.
What are the Scams?
Fraudulent mystery shopping promoters are using newspaper ads and emails to create the impression that they’re a gateway to lucrative mystery shopper jobs with reputable companies. These solicitations usually promote a website where consumers can “register” to become mystery shoppers — after they pay a fee for information about a certification program, a directory of mystery shopping companies, or a guarantee of a mystery shopping job.
The truth is that it is unnecessary to pay money to anyone to get into the mystery shopper business. The shopping certification offered in advertising or unsolicited email is almost always worthless. A list of companies that hire mystery shoppers is available for free; and legitimate mystery shopper jobs are on the Internet for free. Consumers who try to get a refund from promoters of mystery shopping jobs usually are out of luck. Either the business doesn’t return the phone calls, or if it does, it’s to try another pitch.
In another version of the scam, consumers are “hired” to be mystery shoppers and told that their first assignment is to evaluate a money transfer service, like Western Union or MoneyGram. The shopper receives a check with instructions to deposit it in a personal bank account, withdraw the amount in cash, and wire it to a third party. By law, banks must make the funds from deposited checks available within days, but uncovering a fake check can take weeks. Individuals are responsible for the checks they deposit, so if a check turns out to be a fake, they are responsible for paying the bank back. It’s a good idea never to deposit a check from someone you don’t know, especially if the stranger asks you to wire money.
The Facts of Mystery Shopping
Becoming a legitimate mystery shopper for a legitimate company doesn’t cost anything. Here’s how to do it:
Do your homework about mystery shopping. Check libraries, bookstores, or online sites for tips on how to find legitimate companies hiring mystery shoppers, as well as how to do the job effectively.
Search the Internet for reviews and comments about mystery shopping companies that are accepting applications online.
Don’t pay a fee to become a mystery shopper. Legitimate companies don’t charge people to work for them – they pay people to work for them.
Never wire money as part of a mystery shopping assignment.
You can visit the Mystery Shopping Providers Association (MSPA) website at mysteryshop.org to search a database of mystery shopper assignments and learn how to apply for them. The MSPA offers certification programs for a fee, but you don't need "certification" to look – or apply – for assignments in its database.
In the meantime, the FTC says consumers should be skeptical of mystery shopping promoters who:
Advertise for mystery shoppers in a newspaper’s ‘help wanted’ section or by email. While it may appear as if these companies are hiring mystery shoppers, it’s much more likely that they’re pitching unnecessary — and possibly bogus — mystery shopping “services.”
Require that you pay for “certification.”
Guarantee a job as a mystery shopper.
Charge a fee for access to mystery shopping opportunities.
Sell directories of companies that employ mystery shoppers.
Ask you to deposit a check and wire some or all of the money to someone.
If you think you have encountered a mystery shopping scam, file a complaint with your local consumer protection agency, the Better Business Bureau, your state Attorney General, or the FTC.
For More Information
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a new video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
June 2010