MoneyGram Warns Canadians about Fraudulent ‘Mystery Shopper’ Scam

MoneyGram (NYSE: MGI), a leading global money transfer company, today issued a warning to Canadians about a "mystery shopper” scam that can defraud unsuspecting consumers out of thousands of dollars.

According to Kristine Diehl, MoneyGram vice president global compliance, the company is placing an aggressive effort toward educating both consumers and its network of agents about the potential for this type of fraud, and signs to recognize and help prevent occurrences before they happen.

This mystery shopper scam occurs in the following way:

• A consumer receives a letter with a job offer – along with a check – to serve as a paid mystery shopper.
• The consumer is instructed to cash the check, keeping a portion of the funds as compensation and using another portion to buy goods at a business specified in the letter – to "mystery shop” the retailer as a way to evaluate its customer service skills.
• The consumer is instructed to use a money transfer company – such as MoneyGram – to wire the remaining portion of the money to a name provided.
• The victim will later find out that the check was counterfeit, and the portion of the money transferred to the named individual cannot be retrieved – so the consumer is defrauded of those funds.

"This scam is particularly harmful to consumers because it results in the loss of hundreds or thousands of dollars to each consumer who falls victim to its lure,” said Diehl. "While there are legitimate companies that perform a mystery shopping service, consumers are advised to very carefully evaluate any mystery shopper offers, and never – and we emphasize ‘never’ – wire money to anyone they don’t know. No legitimate mystery shopper program will send payment in advance and ask the consumer to send a portion back through a money transfer service.”

To avoid this type of scam, consumers are advised to discard money-making offers from any companies that contact them unsolicited. Consumers can check on the reputation of any company by contacting the Better Business Bureau of Canada (http://www.bbb.org/canada/).

MoneyGram is committed to helping consumers globally prevent fraud. As part of the company’s ongoing efforts to protect consumers from wire transfer fraud, MoneyGram recently launched an enhanced version of its fraud prevention website – www.moneygram-preventfraud.com. MoneyGram recommends that before initiating a money transfer, consumers should:

• Know – Always know the person to whom you are sending money. Never send money to strangers.
• Show – Never show or share information about your money transfer to anyone but the recipient.
• Throw – Discard or throw away any offers that promise easy ways to earn money, especially if the offers require you to send money before earning money.

Consumers who suspect fraud associated with money transfers should contact their local law enforcement. Consumers should call 1-800-MONEYGRAM (800-666-3947) if they believe MoneyGram was used to wire money as a result of a scam.

About MoneyGram International

MoneyGram International, a leading money transfer company, enables consumers who are not fully served by traditional financial institutions to meet their financial needs. MoneyGram offers bill payment services in the United States and Canada and money transfer services worldwide through a global network of more than 256,000 agent locations -- including retailers, international post offices and financial institutions -- in 192 countries and territories. To learn more about money transfer or bill payment at an agent location or online, please visit http://www.moneygram.com or connect with us on Facebook.

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