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Recently, someone emailed me and asked about whether Gapbusters Worldwide was a fraud or scam

Here are the steps I took, which you can easily use for your own investigation on similar businesses. The first thing I am trying to do is eliminate things that look like scams or frauds. So I need to reason backwards - if Gapbusters Worldwide was a scam or fraud, and I found out about it, where would I read it about it?

First, you need to obtain a top down view of the bad apples in the industry. To obtain this, I went the Federal Trade Commission site first and researched Mystery Shopping.

The Secrets of Mystery Shopping Revealed

Do you love to shop? If so, you may be tempted by unsolicited emails or newspaper ads that claim you can earn a living as a secret or mystery shopper by dining at elegant restaurants, shopping at pricey stores, or checking into luxurious hotels.

But, according to the Federal Trade Commission (FTC), the nation's consumer protection agency, marketers who promise lucrative jobs as mystery shoppers often do not deliver bona fide opportunities.

What is Mystery Shopping?

Some retailers hire marketing research companies to evaluate the quality of service in their stores; these companies use mystery shoppers to get the information anonymously. They assign a mystery shopper to make a particular purchase in a store or restaurant, for example, and then report on the experience.

Typically, the shopper is reimbursed, and can keep the product or service.

Many professionals in the field consider mystery shopping a part-time activity, at best. And, they add, opportunities generally are posted online by marketing research or merchandising companies.

Nevertheless, fraudulent mystery shopping promoters are using newspaper ads and emails to create the impression that they're a gateway to lucrative mystery shopper jobs with reputable companies.

These solicitations usually promote a website where consumers can "register" to become mystery shoppers -- after they pay a fee for information about a certification program, a directory of mystery shopping companies, or a guarantee of a mystery shopping job.

The truth is that it is unnecessary to pay money to anyone to get into the mystery shopper business.

The shopping certification offered in advertising or unsolicited email is almost always worthless.

A list of companies that hire mystery shoppers is available for free; and legitimate mystery shopper jobs are on the Internet for free.

Consumers who try to get a refund from promoters of mystery shopping jobs usually are out of luck. Either the business doesn't return the phone calls, or if it does, it's to try another pitch."

This is useful advice: don't pay to play when legitimate opportunities are free.

Next, from a lead on the FTC website, I researched the Trade Association that mystery shopping companies belong to, Mystery Shoppers Providers Association.

The list of members includes Gapbusters Worldwide, and the site has a forum on it, which appears credible.

Ok, now what?

Well, we have to know something about the business practices of GapBusters Worldwide.

Why?

Well, because scam or fraud mystery shopping companies are advance fee scams - they give you a cheque for a large amount of money, ask you to cash it when purchasing items at a store, and remit the change or proceeds to them. The cheque will clear, but because it is a fraud, you account will be charge backed in 30 or more days. You are out the money, and the company cannot be contacted.

With GapBusters, I read nothing online which raised any red flags in this area - I didn't review their contract with their agents.

Finally, after gaining an overview of the industry, the known scams, and having found the trade association website, I looked for the bottom up view: google "GapBusters fraud" or "GapBusters scam".

I found the usual complaints about slow payment, some interesting observations about their business model but these complaints do not rise to the level of fraud.

Finally, I did discover a huge warning sign: there is an entity known as GapBusters, and not GapBusters Worldwide, which is engaging in the advance fee scam!

Talk about corporate identity theft!

After this review, I was able to reassure the person that contacted me that the obvious signs of fraud or scam were not present with GapBusters Worldwide.

Did I miss anything?