Police Warn of Secret Shopper Scam in Livingston

Secret shoppers are getting taken in the latest scam to hit Livingston, police said.

Two residents have reported losing hundreds of dollars in a phony “secret shopper” scheme, said Detective Sgt. Anthony Dippold. The women said they were tempted after receiving an email offering the jobs.

In many cases, secret shopping is a legitimate business. Companies pay the so-called mystery shoppers to evaluate stores, employees and services. The shoppers are hired as independent contractors for about $10-$40 an hour, plus reimbursement of their purchases.

But what is happening in Livingston is a con where the secret shoppers are receiving money orders, vastly more than needed to cover their fees and expenses, to deposit into their personal bank account, Dippold said.

The two women received several checks for $980. The first woman, a resident in her 50s, was asked to review money transfer services at Western Union. The second woman, a resident in her 30s, evaluated customer service at Walmart, Dippold said. They got to keep $300 for each assignment and are asked to wire the rest of the money back.

Those money orders turned out to be counterfeit. And the residents lost hundreds of dollars on each fake check they deposited, Dippold said.

Bank customers are responsible for the checks they deposit, and victims must repay the bank for bad checks. Federal law requires banks to make the funds deposited available quickly. It's important for consumers to know that -- just because money can be withdrawn -- it doesn't mean the check is good. Banks often release funds from a cashier's check or money order before it clears, according to the Federal Trade Commission, which has issued consumer alert warning on the secret shopping fraud.

The conned secret shoppers in Livingston filed police reports charging theft by deception, Dippold said. Police are investigating "but it’s very difficult to trace. The money could go anywhere in the world.”

Learn more about avoiding the scam from the Federal Trade Commission here.

Meanwhile, secret shopping isn’t the only con game in town, Dippold said. Police are also receiving reports of residents who have lost thousands of dollars in a lottery scam.

In this con, senior citizens are receiving calls that they’ve won a lottery. The con artists are able to convince them that an attorney will deliver the money at their homes. The only catch is that they need to wire money owed on the taxes before the winnings are delivered.

“They lie to these people and some fall for it,” Dippold said.

A third scam is also aimed at older residents who receive phone calls from a young person claiming to be a grandchild. They say they’re sick or injured, or even need bail money sent right away, Dippold said.