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Thieves typically pose as recruiters and post fake job openings to lure candidates, then steal valuable information during the “interview” process.
Often, they post these fake ads on reputable websites like LinkedIn and other job search platforms, the ITRC said, making it difficult to sort out truth from fiction.
One of the main dangers is the disclosure of financial account information or sensitive personal data (such as a Social Security number) that criminals can then use to steal a job applicant’s identity.
According to the Federal Trade Commission, consumers reported losing $367 million to job and business opportunity scams in 2022, a 76% increase from the previous year.
According to the FTC, the typical victim lost a “massive” $2,000.
Employment scams aren’t the most common type of fraud: They accounted for just 9% of all identity scams in 2023, second only to Google Voice scams, which accounted for 60%, the ITRC said. (Google Voice scams trick people into sharing a Google verification code, which scammers can use for malicious purposes. They often target people on Craigslist and Facebook Marketplace.)
However, employment scams are an “emerging” threat, said Eva Velasquez, president and CEO of ITRC.
“Job scams have been around as long as jobs have been around,” Velasquez said.[But] they will continue to grow due to a number of external factors occurring.
Advances in AI are one such factor, allowing scammers to generate job postings and recruiting messages that appear more legitimate, experts said.
“AI tools help refine the ‘tone’ to make it more believable and compensate for cultural and grammatical differences in language use,” the ITRC report said.
Additionally, the rise of remote work during the pandemic has made workers and job seekers more comfortable with digital-only transactions, Velasquez said.
Job seekers may never see a real person during a fake hiring or interview process: They may interact with a supposed recruiter only via text message or WhatsApp message, Velasquez said, which is a “big red flag.”
Recent graduates, immigrants or others new to the U.S. workforce may think this type of digital-only recruiting is normal, especially for fully remote jobs, she said. But recruiting doesn’t typically work that way, she added.
Scammers will “pressure you into asking for money” during the hiring process, the FTC said.
They may send you an invoice for prepayment for work equipment (such as a computer) or job training. They promise to reimburse you, but won’t, according to the federal agency.
Scammers may also ask for your personal information — like your driver’s license, Social Security number or banking information — in advance in order to fill out “employment paperwork,” the FTC said.
More information on personal finance:
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“Scammers promise you a great job, but what they really want is your money and personal information,” New York Secretary of State Robert Rodriguez said in a consumer alert this year.
Job seekers should not expect to be asked for personal information until after they have received and accepted a job offer, Velasquez said. (While this is a good gauge of legitimacy, it is not necessarily a guarantee of security in all cases, she added.)
Ultimately, “there is no foolproof way to detect” job opportunity scams, according to the FTC.
Here’s what you need to know and how you can better protect yourself, according to Velasquez and the FTC:
- Don’t be lured by well-known job search platforms.
- Independently verify that the company exists and is hiring. Do not accept a job offer until you have done your own research.
- Be wary if you haven’t taken the initiative to contact a potential employer or recruiter. Instead, contact the company directly using contact information that you know is legitimate.
- Typically, only limited personal information is required during the application process: name, phone number, work and education history, and perhaps email address and home address, Velasquez said.
- Digital-only interactions are a red flag. However, phone calls are no guarantee of safety either.
- Honest employers will not send you a check to buy supplies or anything else and then ask you to send back the remaining money. This is a fake check scam.
- Be wary of what seems too good to be true. For example, a job posting offering 100% remote work that requires few skills and a huge salary “is not realistic,” Velasquez said.
