You can’t have your cheesecake and eat it too
The saying “if it sounds too good to be true, it probably is..” seems apropos in describing the latest fraud to hit the daily dealing industry. I was alerted by Chad Jaquays and our friends at Crowdsavings.com (via email) of a possible scam involving the use of a registered domain name thecheesecakefactoryinc.
According to Chad, “the individual was using an email @thecheesecakefactoryinc.com and he claimed to be the marketing director.” The elaborate ploy went as far as having Crowdsavings fill out a credit application. They were also sent wiring instructions and went back and forth for two days making changes to the copy.
Luckily for Chad and Crowdsavings, a source that chose to remain anonymous informed them of the possible scam – the deal was going to be run on Monday.
The persistent purveyors of this cheesy deal also contacted mamasource.com. They were notified how moldy this deal was and posted this:
“Unfortunately, our special offer from The Cheesecake Factory will not be running tomorrow. We are extremely disappointed, as we were looking forward to bringing you this great opportunity. We apologize for any confusion and will be sure to let you know if we are able to bring you this offer in the future. Please feel free to email us at email@example.com with any questions or concerns.”
I just got off the phone with Chad, and it appears that KGB ran the deal. There were two separate deals, $25 for $50 and $50 for $100. Apparently the commission split was also juiced to the dealer side – along the lines of a 70/30 split. Mr. Jaquays notified KGB and they have pulled it but not before 7000 to 10,000 deals were posted. The deal was flying out the door selling 80 to 100 deals a minute.
The backlash of all this is horrific. KGB is already dealing with customer service issues. There is also a good chance that KGB cleared their books of legitimate deals in order to run this one. Another point to consider: the thousands of refunds and the credit card fees that someone is going to have to absorb.
I have also reached out to The Cheesecake Factory. Anyone with any additional info, feel free to contact me.
Stay with us at Daily Deal Media as updates continue to flow in.