Mystery Shopper Scam 2014

It sounds pretty good: you walk into a store like any other customer. Then 20 minutes later, you’re done, ready to write a report that will earn you $50. And then you can do it again.

If Shopper Systems and some companies like it were to be believed, mystery shopping jobs like this were not only widely available, but could generate “insane profit.” All for just $2.95 for training and a week’s trial, then $49.95 a month after that for an up-to-date list of interested retailers — and you’d be free to cancel any time.

But they couldn’t be believed, the FTC says. According to the FTC’s complaint, people who paid to be mystery shoppers found there were few, if any, jobs in their area. And the jobs that did exist paid a lot less than $50. People who tried to cancel found they were still charged $49.95 a month, not knowing they were also enrolled in a second “opportunity” running their own webstore.

The companies and people behind the alleged scam have agreed to settlements with the FTC that ban them from selling business or work-at-home opportunities and require them to surrender assets to the FTC.

Legitimate mystery shopping opportunities are out there, but so are plenty of scams. Don’t pay to be a mystery shopper — information about mystery shopping jobs should be free, and certifications offered are often of little value. Many professionals in the field consider mystery shopping a part-time activity, at best, and opportunities generally are posted online by marketing research or merchandising companies.

Want to learn more about these kinds of scams and get tips on finding legitimate mystery shopping jobs? Read Mystery Shopper Scams at ftc.gov/bizopps. 

Originally published by by 

Amy Hebert

Consumer Education Specialist, FTC

The Coaching Department Email Scam - 2014

The FTC’s case against the Coaching Department and its related companies, which the FTC alleges strung people along in a three-part scam that raked in tens of millions of dollars. For out-of-work people who got caught up in this business opportunity scam, it was a problem that went from bad to worse.

Here’s how it worked, according to the FTC:

Phase 1: It started with an email or online search result telling people they could run their own internet business from home. When people clicked through to the company’s sites, they found success stories of people who supposedly made real money with the system, and warnings that the program was quickly filling up. At a cost of less than $100, many people jumped at the chance.

Phase 2: Once people paid and got their work-at-home kit, the next pitch began. For anywhere from $3,000-$12,000 — often depending on a person’s available credit — they could be part of the business coaching program. Not just any program, the company said, but one for select, motivated people that could be “success stories” for marketing materials or infomercials. People “interviewed” for the opportunity would work hand-in-hand with coaches to help them succeed, so they’d easily make enough to pay off their debt in 3-6 months, the company said.

Phase 3: After people paid for the coaching program, they were hit up a third time. This time the pitch was for add-on services like website design or accounting services that would ensure success. People wanting to protect their already substantial investments in the company spent thousands more.

But no matter how much people bought or how hard they worked, most didn’t end up with a working online business. Besides making little to no money, they also ended up heavily in debt, the FTC says. The scam ended when people realized they’d been ripped off or reached the limits on their credit cards.

Many work-at-home opportunities are promoted by scam artists and will cost you more than you can earn. Learn more about evaluatingwork-at-home and other business opportunities at ftc.gov/bizopps.

This article was originally published by by 

Amy Hebert

Consumer Education Specialist, FTC