Employment scams cost workers about $2 billion in direct losses each year, according to the Better Business Bureau. In the first quarter of 2022, around 14 million people were exposed to job-related scams. The Federal Trade Commission reports that unsuspecting job seekers lost $68 million due to fake business and job opportunities.
In a challenging economy, these scammers prey on the vulnerability of workers. With money tight, due to high inflation and soaring costs, many people are vulnerable to getting caught up in flimflam operations. The scammers know how to come across as sincere and promise much-needed money quickly by impersonating well-known companies. Those responding to hundreds of job ads without any luck are susceptible to falling for get-rich-quick schemes.
Several types of job scams commonly trap unwitting job hunters. These shakedowns include fake job postings, work-from-home scams, interview and government frauds.
Be leary of too-good-to-be-true job listings. Watch out for job postings that boast high-paying opportunities that don’t require much, if any, skills or experience needed. Scammers will ask for personal information, such as your Social Security and bank account numbers. The job won’t materialize, and your identity and money will be stolen. Mark Anthony Dyson, host of the Voice of Job Seekers podcast, advises, “You must be diligent about any invasion of your privacy that can affect your financial and employment decisions.”
Warning Signs To Look Out For
If you receive an offer that sounds too good to be true, walk away. No one is handing you out free money without a catch. Here’s what you need to watch out for:
- The amazing, wonderful interview request comes from what looks like a high-end company, but only has a basic email address.
- You’re asked to give up your personal data during hiring, including your Social Security number, date of birth and bank account information.
- The recruiter tries to charm you into paying an application or job training fee.
- They’ll be demure in sharing the company’s name and compensation until you provide them with your personal information.
- A job is offered way too quickly, and you’ve never met or seen the interviewer or gone into an office.
- The only contact is via social media.
- Their website looks like it was hastily built and has grammatical mistakes, the job description is vague, and there isn’t any direct contact to speak with at the organization.
Taking Advantage Of The Work-From-Home Trend
Scammers are taking advantage of the remote work trend. The work-from-home shams say you can work remotely and earn a fantastic living. This one-of-kind opportunity only costs a one-time upfront fee to get started. Once the check clears, you’ll never hear from them again.
Look out for these so-called jobs that include reshipping products to selling things to people you know. Another tell is when fast-talking salespeople say, “For only a low-cost investment, you too can be your own boss.” Similarly, crooks try to lure you in by referencing the federal government. They’ll claim access to a safe job with a pension and benefits, and you only have to pay a small fee.
The catch is that these offers require you to pay upfront for training or certifications. Then, before you know it, your credit card is charged without your permission. Another thing to look out for is the fake-check scam. This happens when you deposit a check from your “new employer,” and they ask you to send some money back due to “overpayment.” The check bounces, and the bank demands that you repay the full amount of the fake check, while the scammers walk away with your money.
Interview scams involve an emailed job offer supposedly from an employer, recruiter or job board. Scammers impersonate job placement services, such as staffing agencies, headhunters and other placement firms. You can find these things happening on social media platforms, including Facebook, Twitter and LinkedIn.
How To Avoid Getting Scammed
Only apply to job advertisements on reputable sites. Be careful of jobs that offer big money without needing much, if any, relevant experience. Recruiters don’t ask job seekers for money. The companies hire headhunters and compensate them via a placement agreement, which is typically a set percentage of the job seeker’s base annual salary. Job listings are ubiquitous. With so many job aggregation sites and online corporate career portals, there is no reason why someone would charge you a hefty fee for access to job listings.
Once you receive a written job offer from a reputable firm, have met with people at the company, conducted all your due diligence and human resources has completed a background check, only then is it okay to provide your personal data, such as your Social Security number.
If you are on the fence about an opportunity, err on the side of caution. Contact the Better Business Bureau or the Federal Trade Commission to learn more about the organization offering you the “unbeatable” job offer.
Source: Forbes
