Secret Shopper Scam - How It Works

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Discover how con artists use counterfeit checks and secret shopping scams to deceive victims—learn to spot and avoid these cunning frauds.

Con artists often craft convincing stories to lure victims into their schemes. Once they've identified a successful tactic, they tend to reuse it repeatedly. A common and deceptive method combines counterfeit checks with secret shopping opportunities, a scam that has gained recent attention.

The trick begins when you receive a seemingly legitimate check claiming to offer you a secret shopper position. Excited, you deposit the check into your bank account, and within a few days, the funds appear available, with the bank confirming the check has cleared. Confident, you proceed to the designated store—often a large retailer like Walmart—to fulfill your assigned tasks.

Your assignment might involve testing in-store money transfer services such as Western Union or MoneyGram by sending some of the deposited funds. Alternatively, you're instructed to purchase prepaid cards—like iTunes or gift cards—and send pictures or the card numbers to your supposed employer.

However, the story takes a dark turn weeks later. The bank discovers that the check was fake, leaving you responsible for the entire amount. How does this happen? Banks are required to make deposited funds accessible quickly, but detecting counterfeit checks can take weeks. When you attempt to recover your money from the money transfer service, the scammers have already disappeared, having drained the prepaid cards and vanished with the stolen funds. It's important to note that money orders and cashier’s checks can also be faked.

The key takeaway? If someone asks you to deposit a check and then send money or gift cards in return, it’s almost certainly a scam. Always be cautious and skeptical of such requests.

To stay protected from these and other scams, consider signing up for free alerts from the FTC at ftc.gov/scams.

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