Secret Shopper Scam

With changes in security, internet banking, debit cards, ID theft, and phishing, many new types of fraud arise on a yearly basis. However, there is some fraud from years ago that is still very prominent. One very common type of fraud is the Secret Shopper or Mystery Shopper fraud.

What Does It Look Like

This type of fraud is very basic. Contact can start out via e-mail or regular mail in most cases. However, in recent years, websites like Craigslist can start the communication by soliciting work as a secret shopper. No matter how it’s initiated, the fraudster generally communicates to the victim that they have been selected to be a secret shopper to a store or bank. The victim is then supplied with a large item, usually check or money order, along with various other items depending on how in-depth the scam is. This can include instructions, letters to try to authenticate it, or training paperwork. After receiving the funds, the victim is instructed to cash the item and send some of the funds back to the fraudster. In cases of a store, it may look like the following situation:

Victim receives a $3,000 check for shopping at Walmart. $2,000 is meant to be sent back to the fraudster for a $100 fee through Moneygram to secret shop their Money Center desk and provide feedback.

Sometimes the victim is meant to buy an item from the store or secret shop the bank that is cashing the check or money order.

In any case, the money order or check is fraudulent. If the financial institution does cash it, it eventually comes back as fraudulent, and the fraudster’s portion of the money is already gone.

What You Need To Know

• If it’s unsolicited, it’s most likely fraudulent. Secret shopping can be a legitimate job, but the employers of those jobs don’t generally find employees via e-mail blasts or mass mailings.
• Don’t pay money to work for someone. If they are asking you send money to work for them, there’s generally something wrong with it.
• Just because it’s a cashier’s check or money order doesn’t mean it’s real. It’s a common misconception that cashier’s checks can’t be faked. Cashier’s checks are form checks for most institutions, so a real one can be very easy for a fraudster to get his or her hands on to make a fake. Additionally, most issuers of money orders have a verification source. It’s usually a website or phone line.
• Once the money is sent, it’s gone. With most money transfer services like Western Union or Moneygram, the money is paid in cash and sent to the individual. When that individual picks it up, there is no getting it back. In many cases, the money is picked up under a fake name, so the name and location won’t help in tracking them down.
• If you think it’s a fake, have it looked at. Many financial institutions will be able to help you determine if it’s a fake. If you’re in doubt on it, have your bank look at it.