Are Banks Helping Mystery Shopper Scammers?
By now I hope you have heard about the check-cashing, money-wiring scam that has taken thousands of dollars from each of an untold number of victims. In this mystery shopper scam, the scammers send a check with instructions to cash it and wire part of the money to someone, usually in Canada.
The victim is told that they are evaluating the service of the wire service, or that they are to make some purchases to evaluate a retailer. A few weeks later, the victim learns that the check was a forgery, and they are responsible for repaying all of the money to their bank.
In the Hartford Courant, columnist George Gombossy asks if banks are actually aiding the mystery shopper scammers by omission. He has a good point. Although he is addressing the situation at one particular bank, the problem is not exclusive to that bank.
When someone takes one of these checks to the bank, they may ask how long before the check clears. Instead of giving the actual answer, that it may take weeks to know whether the check has been honored by the issuing bank, the teller may simply state when the funds will be available. However, that is a very different answer from when the check has cleared.
Under Federal law, banks must make funds available from U.S. Treasury checks, official bank checks (cashier’s checks, certified checks, and teller’s checks), and checks paid by government agencies at the opening of business the day after you deposit the check. For other checks, banks must similarly make the first $100 available the day after you deposit the check. Remaining funds must be made available on the second day after the deposit if payable by a local bank, and within five days if drawn on distant banks.
But here is the catch: It may take weeks for the check to get back to the issuing bank and for the bank or its customer to determine that the check is not valid.
Because most banking customers do not understand how this process works, they assume that when the bank gives them money for the check, that the check has cleared. In fact, that is the way it used to work, but the law has changed.
Want to help protect people from these scammers? Ask your bank how they answer the question of when customers know that a check they deposit has cleared. If they are instead telling customers when the funds will be available, write or call executives at the bank to demand that they improve their training and that they insist that tellers tell the truth.
The explanation does not have to be complicated. All they have to say is something along the lines of, “Under Federal law, we have to make the funds available to you within X business days. However, the check may not actually clear for several weeks. If the check is returned, you will be responsible for repaying any money you received.” How hard would that be? Especially considering that they could save their customers from being swindled out of thousands of dollars.
This scam is not limited to bogus mystery shopper jobs. It has been used by scammers who buy things through classified ads and online auctions.
Let’s do what we can to educate potential victims and stop the scammers in their tracks. What did your bank say when you asked them how long it takes to know that a check has cleared?
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on December 22nd, 2008 at 10:26 pm
Just received check for $990 today from Research Union Inc. drawn on chase bank account. Immediately called bank and of course they did not have an account for the one that I gave them off the check,Bogus!
I knew it wasn’t real for several reasons. Envelope came addressed to me without a return address. What mystery shop company doesn’t put it’s name on the envelope? None! The check did not have any weight to it, it was not watermarked and the type set was different for the payee and in the remarks corner. The letter was very professional looking with several company logos on the bottom but did not have an imprinted company name on it. The stamp was Canadian and the company listed on the check was in Bronx NY. I called the number on the check and the person who answered did not sound professional. I looked up the website and of course nothing listed.
Guess you know where I am headed tomorrow…..the District Attorney’s Office!
on December 22nd, 2008 at 10:34 pm
Those are exactly the kinds of things that should tip off potential victims. Good for you, for not falling for this.
on December 23rd, 2008 at 3:35 am
I’ve become fairly good friends with the manager at the branch of Bank of America I go to. I plan to talk with him and see what the tellers are trained to say. From what I remember they just say when the funds will be available.
@margo281, congrats on cathing this before it caugh you and good luck with your case, I hope you can take at least one fish out of this pond of scammers.
on December 24th, 2008 at 6:26 am
The following is an email I received from “Zagat Survey, LLC” earlier in the month. Because it sounded “phishy”, I did not act on it:
Hello Mystery Shopper:
This is the Shopper’s Guide you are to go through and we wants you to run a survey on two prominent companies in your area.
The 1st is a Western Union Location
The 2nd a Restaurant
YOUR FIRST ASSIGNMENT WILL BE A WESTERN UNION LOCATION WITH THE LOCATION ADDRESSES BELOW.
There have been reports about laps in the services of their Management and some of their staffs,Their complains are based on reports which their customers forwarded anonymously and Phone calls which were also made to the head office.
The below Western union locations were reported for evaluation for the following reasons:
I) Customers have reported their money missing
ii) Slow services
iii) Unbalanced transfer charges
The 2nd company was reported to be rendering
(I) Poor services
(ii) Rudeness to customers
(iii) Excess charge
(iii) Late opening time and Closing before time.
Your First Secret Evaluation would be
1) To make a transfer of funds from this western union location to our Mystery shopper, And the funds would be picked up by another mystery shopper at another location where a customer reported her funds missing.We will want you to go to any of the below western union locations to carry out the assignment.
2) You would have to record the time at which you go to the location and how many minutes it took you to get service.
3) You would be sent a check/Money order which would cover your payment of $400 and also for the duty. As soon as you receive the check/money order, you should cash in at your bank, and deduct your $400.00, and use the rest of the money for the services.
4) Upon receiving the funds, the locations address would be forwarded to you, and also the Name and address of whom the Mystery shoppers transfer would be made to. You would have to keep a comprehensive report on every activity you carry out.
5) You would also provide me with the name of the cashier that attended to you.
Please send me a reply so that the check/Money order sent out to you ASAP
Yours Sincerely
Mark Benson.
Zagat Survey, LLC
on December 24th, 2008 at 10:09 am
@crawdaddydoo92, let us know what your bank says about teller training. I think that many of these scam losses could be avoided if the banks gave good information to their customers. Some people will not ask the questions, but when they do they should get correct information.
@superseller4, this is definitely a scam. However, it is not from “Zagat Survey.” The scammer is trying to look legitimate by using a familiar name. The best thing to do is just hit “delete.”
I wrote about a similar email I received here: http://www.MysteryShoppersManual.com/another-mystery-shopper-scam
on December 25th, 2008 at 8:59 pm
Thank you Ms. Stucker for your comments on my previous posting. Incidentally, just yesterday I received by UPS, three legitimate-looking MoneyGram money orders, each in the amount of $850.00, made out to my name. As soon as I can decipher the poorly handwritten return address, I’m going to send them back, or perhaps I’ll just discard them in the shredder. Why should I have to pay a penny to return someone’s scam attempt?
on December 26th, 2008 at 11:26 pm
Beaware everybody. The following is an email in a series of suspicious emails which I recently received :
Hello xxxxxxxx,
Season Greetings to you.I am writing to let you know that the payment for your first assignment has been mailed to you via UPS.the payment is in from of Money Orders as you are to cash the Money Orders at your Bank and proceed with the following procedures :
Your Evaluation would be ;
1) To make a transfer of fund from any of the Western Union location provided to you in the last email to another Mystery shopper, And the funds would be picked up by another mystery shopper at the exact location where a customer reported her funds missing.
2) You would have to record the time at which you go to the location and how many minutes it took you to get service.
3) You have been sent a check which would cover your payment of $400 and also for the duty. As soon as you receive the check, you
would cash in at your bank, and deduct your $400.00, and use the rest of the money for the services.
4) You would have to keep a comprehensive report on every activity you carry out.
5) You would also provide me with the name of the cashier that attended to you.
Here are the details where you are to send the western union to:
Name : Gary Franklin
Address: 154 Upper Berkeley Street,
City: London
Zip Code: W1H 7QR
Country: United Kingdom
Get back to us with the MTCN (10 digit) given to you at the western union location including the total amount sent after deduction of charges, SENDERS NAME and ADDRESS
Yours Sincerely
Mark Benson.
Zagat Survey, LLC.
on February 10th, 2009 at 2:10 pm
Here is a follow up on the first post. I am a bit disappointed to the response from local law enforcement, I took the information in to the police and their response was “Did you cash the check?” to which I responded, “No, absolutely not” and he shrugged and said, “Well then no crime has occurred”
Hmm, guess crime does pay! I hate the fact that this can go on and this scammer can continue this until he gets another bite on his scam!