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ob scam warning issued

From Staff Reports

MICHIGAN CITY - The Michigan City Police Department is advising residents of an Internet employment scam seeking "Mystery Shoppers."

"Unfortunately, we are now beginning to experience more and more scams through the Internet preying on unsuspected citizens, Michigan City Police Sgt. Chris Yagelski said.

The "Mystery Shoppers" fraud promises easy-to-perform work that pays well, requires no previous experience, offers free training and provides extra income.

The ads, found on the Internet or in newspapers, claim money can be made by working for major retailers by visiting selective major stores each day, such as Best Buy, Sears, Walmart, Kmart, Home Depot and J.C. Penney.

"You are to make specific purchases, turn in reports and send money orders or wire transfers back to the company," Yagelski said. "The way the scam works is, you answer a Mystery Shopper ad and you are then sent a 'packet' which typically contains a variety of items, including a training assignment and a 'Cashier's Check' or 'Company Check' made out to you in a large amount of money which is typically a few thousand dollars."

The Mystery Shoppers' first "assignment" is to pose as an ordinary bank or Walmart customer to rate the local business. The shopper is instructed to cash the company check, keep the "Probationary Training Pay," which could be $400, keep out Money Gram or Western Union fees, keep $100 of "Mystery Shopping Money" and obtain a money order or Western Union transaction and send the remainder of the money to the company as a "test" on rating the bank or employee service.

"They then have you continue the scam by taking your $100 bonus and continue shopping at Walmart, writing down every detail as you shop for products," Yagelski said. "You then get to keep whatever you purchase as your 'bonus' and send in your report to the company usually through an e-mail report."

Yagelski said once the task is completed, the scammers then "overnight" the second assignment: changing stores and locations, and the arrival of a $200 shopping bonus.

"Everything seems to be going great until your bank or credit union contacts you about the fraudulent checks that you have been cashing and basically sending your 'own money' to the false company which, of course, can never be found or contacted," Yagelski said.

There are reputable mystery shopping companies, Yagelski said, but participants should never have to pay a fee or use his/her own money to work for them.

HOW TO AVOID FALLING VICTIM TO THE ‘SECRET SHOPPER’ SCAMS
• Remember that anyone can place a newspaper or online ad.

• Do not confuse the appearance of such solicitations if they appear in reputable forums with proof the Web site or job-search service has approved these companies.

• Do not be pulled into a false sense of security by "official sounding" corporate names. Some scam artists operate under business names that can be confused with reputable firms. Others choose impressive-sounding names.

• Never pay a company to hire you, not even if the payment is presented as your buying necessary training materials, obtaining required certification or registering with databases.

• Be wary of companies that ask you to disburse money from your own pocket for goods to buy as their secret shopper.

• Never wire money to strangers or firms that have supposedly hired you.

• Never wire money to someone you do not know. Remember, a charge on a credit card can be disputed; a money order or wire transfer once it is cashed is gone forever.

• If you have questions about the legitimacy of a job listing, contact the Better Business Bureau, the state or local consumer agency or Federal Trade Commission.

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http://thenewsdispatch.com/main.asp?Sectio...amp;TM=42920.34

City police warn of scam

From Staff Reports

MCHIGAN CITY - Another fraudulent business scam has surfaced.

Sgt. Chris Yagelski of the Michigan City Police Department said several businesses have reported to the Indiana Secretary of the State's office that they have received a deceptive letter that appears to come from an official government source.

The letter solicits an annual fee of $125 or $150 and claims it will be used for record keeping and processing of their company's annual minutes.

This letter gives the appearance of coming from a legitimate government agency and actually cites fictitious Indiana state law, Yagelski said.

The letters state they come from the "Indiana Corporate Compliance Business Division." The letter includes a return date and gives the impression that action is necessary on the part of the business to act immediately.

"These letters are NOT official correspondence from the Secretary of State's office, or any other Indiana State agency," Yagelski said.

Investigators from the Attorney General's office are working with federal law enforcement to determine who is responsible for these letters and ensure they are stopped.

In a News-Dispatch story Sunday, Yagelski warned of a scam in which people are offered jobs as "mystery shoppers," but prospective employees are sent a training packet and a "cashier's check," asked to cash the check and send money back as a "test." The cashier's checks are later found to be bogus.