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Beware of drop shipping scam, warns Michigan attorney general

The scam is called 'drop shipping.'

MUSKEGON, Mich. — Rhonda Walbrink saw on Facebook that a popular footwear company, Bogs, was having a huge sale.

"I was actually looking for some new winter boots and I had never owned Bogs before. I got excited about the prices and got online and I was getting three pairs of boots for $69," said Walbrink.

The money was taken out of Rhonda's checking account the day she ordered but there was something unusual.

"'Please note a company named Hengdato Company will be displayed on your credit card statement not Bogs,'" Walbrink reads from her email.

Despite that, other emails seemed more normal.

"I received another email stating that it would be at my home on a certain date. And then I received a delivery notification, and the odd thing was that was a particular day where I was home," said Walbrink.

The boots never came and when she contacted their customer service she got nowhere. After contacting the Better Business Bureau, Rhonda learned she had become a victim of 'drop shipping' where a third party company sets up a website with no stock and either ships items months late or never at all. 

"I have not heard of this drop shipping scam before until now. I just know there is someone or some company out there that took my money and ran with it," said Walbrink.

The Attorney General's office says you can protect yourself by researching the company, product and prices. Another key is to check and see if they have an actual customer service number. In Rhonda's case it was only an email.

"I'm glad it was only $70 and not $700 or $7000 but I will definitely be more alert next time," said Walbrink.

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