The Latest Scams Circulating the Consumer World. Be warned. Be informed.
August 2006
Payment Processing Scams
If you are looking for a way to make a few extra dollars these days, do NOT consider becoming a Payment Processor. It may seam like an easy way to earn a paycheck, but it is nothing but a scam. Read on to find out more about Payment Processing Scams and remember this helpful principle from Jump$tart the next time a job seems too good to be true.
Principle 2: Don't Expect Something for Nothing
The typical payment processing scam asks victims to cash checks, take a commission, and wire the remaining balance to the employer via Western Union, Moneygram, or bank-to-bank transfer. The employer promises the victim a commission between 5% and 20% simply for serving as a Payment Processor and cashing the check.
The employee/victim is double-duped because the employer/scammer also steals the personal information of the employee by gaining access to his or her computer through malware embedded in the email correspondence, or embedded in the HTML of a fake corporate web site. The scammer then sells the personal information to identity theft black market databases.
The money that is sent to payment processors is stolen from innocent account holders through identity theft or is counterfeited paper in the form of:
The victim loses money when their bank notifies them of the counterfeit check, but often, by this point, they have cashed multiple counterfeit checks.
Scammers often target and are most successful with:
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Single mothers
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Students
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People who are disabled or handicapped
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Retirees
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People on fixed incomes
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People having trouble making ends meet
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Cottage industry owners
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People who already have a work-at-home business
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People who have a limited understanding of the banking system or good business accounting practices
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There are literally hundreds and hundreds of victims across the United States.
How do people find out about the job offers?
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Unsolicited emails
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Private messages
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Instant messages
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Chat rooms
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Phony employment web sites
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Phony fundraising opportunities
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Job posting bulletin boards
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Help wanted bulleting boards
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Employment web sites like Monster.com
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Classified ads both on and offline in newspapers and magazines
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Postings on bulletin boards at grocery stores and laundromats
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Everywhere and anywhere an employment opportunity message can be shared
Play it Safe
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Do not cash a check for a stranger.
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Do not accept any funds on behalf of someone else.
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Do not accept funds from one party and send them off to another.
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