Job Scams Are a Major Threat: Tips to Protect Yourself

Job scams have become increasingly prevalent and pose a significant risk, particularly to those actively seeking employment.

As of 2023, employment-related scams have been ranked as the second most dangerous type of scam by the Better Business Bureau (BBB), with only investment and cryptocurrency scams posing a greater threat.

The risk ranking is based on factors such as the prevalence of the scam type, the likelihood of losing money, and the average monetary losses reported.

The Growing Threat of Job Scams

Reports to the BBB’s Scam Tracker surged by 54% in 2023 compared to the previous year.

This alarming increase highlights the urgent need for awareness and preventive measures.

In 2022, the median loss from job scams was reported to be $1,500.

By 2023, this number had risen to $1,995, indicating more severe financial damage to victims.

The age group most vulnerable to employment scams is those between 18 and 44 years old.

Common Tactics Used by Scammers

Fake Job Postings

One common method employed by scammers involves posting fake job advertisements.

These deceptive postings can appear as paid internships, research projects, and even casual jobs like pet sitting.

Such listings are often found on social media and online job marketplaces, but it is not uncommon for potential victims to receive job offers via text message or email.

To protect yourself, always take the time to verify the legitimacy of the job and the employer.

Conduct an online search using the job or employer’s name followed by the word “scam.”

This simple step can save you from falling prey to fraudulent schemes.

Bogus Checks

Another prevalent tactic involves scammers sending checks to victims purportedly to cover job-related expenses.

For instance, an interview held on a messaging app may lead to a job offer, followed by the arrangement to send upfront money for supplies like laptops or iPhones.

Victims may deposit the check using their bank’s mobile app and find that funds are initially available.

However, the check will eventually bounce, leaving the victim responsible for the lost amount.

According to a 2021 BBB study, when the bank discovers the check is fake, it deducts the funds from the victim’s account, leading to significant financial strain.

Pressure to Act Quickly

Scammers often create a sense of urgency to prevent victims from thinking through their decisions or conducting due diligence.

They may rush the individual to accept the job offer and quickly complete transactions, including bank deposits or money transfers.

It is essential to resist this pressure and take the necessary time to research and verify any job offer.

Requests for Payment

Scammers might ask for money in various forms, such as money orders, cash, or cryptocurrencies like bitcoin.

For instance, a young woman was scammed into depositing a fake check and then transferring $500 via a bitcoin ATM, supposedly to confirm her address.

Scammers may continue to demand more money until the victim realizes the deception.

A St. Louis woman reported losing $4,800 after falling for a similar scam involving an interview conducted via Zoom for a job on Indeed.com.

She was instructed to provide her bank account details and purchase gift cards, ultimately leading to significant personal losses.

Recognizing Red Flags

Sending Money for Job-Related Expenses

Legitimate employers will never ask you to pay for job-related expenses upfront.

If requested to pay for training, equipment, or any other job-related services, treat it as a red flag.

Scammers may promise reimbursement with your first paycheck, but this is usually a ploy to obtain your money and bank information without any intention of providing employment.

Providing Bank Information

Scammers may ask for your bank account information under the guise of setting up direct deposits.

However, this information can be misused to hack your bank account.

Similarly, be wary if asked for credit card details or if the supposed employer asks you to send packages or use your credit card to purchase items.

Specific Examples of Job Scams

Reshipping Scams

The BBB Serving Eastern Michigan and the Upper Peninsula warned about reshipping job scams, where workers are instructed to inspect, relabel, or forward packages.

Victims often discovered that they were never paid for the work.

One scam involved a fake company, Connect Shipping, which instructed individuals to use their credit cards to purchase items meant to be shipped to others.

Reshipping scams can also involve handling stolen goods, putting the victim at legal risk.

Where to Report Job Scams

If you suspect that you have encountered a job scam, it is essential to report it to the appropriate authorities.

You can file a report with the Federal Trade Commission (FTC) at ReportFraud or with the BBB at BBB.org/ScamTracker.

Additionally, the FBI’s Internet Crime Complaint Center (IC3) another resource for reporting scams.

Conclusion: Protecting Yourself from Employment Scams

In conclusion, job scams are a serious threat, especially to those eagerly searching for employment.

To protect yourself, always verify the legitimacy of job offers, be cautious of any job requiring you to pay upfront, and never rush into decisions without conducting thorough research.

By staying vigilant and following these tips, you can steer clear of deceptive job offers and safeguard your personal and financial well-being.