The Better Business Bureau says losses from job scams rose 250% in the first three months of 2023. More people are looking for remote work, and scammers are using remote job scams to take advantage of them. The BBB found about $840,000 in losses in that time.
The Federal Trade Commission also says job scams were one of the top 10 fraud types reported in 2022. People told the FTC they lost $367 million to business and job opportunity scams that year, up nearly 76% from 2021. The median loss was $2,000, far above the $650 median for all fraud types combined.
Fake Recruiter Profiles Fool Job Seekers
In a job scam, a job seeker is contacted by a recruiter who looks real but is not. These scams use LinkedIn and other sites to push people toward fake job ads and fake recruiter profiles. The job may sound real, and the company may even exist. But the offer is still a scam.
If a recruiter asks for money in exchange for a job, be careful. That is a strong red flag. Some real firms do charge fees for custom help, but you should check them out before you pay anything.
We are seeing more job scams in this hard economy. Scammers prey on workers' weak spots. When money is tight because of inflation and higher costs, people can be easier to fool. Scammers may sound honest and may pose as well-known companies to promise fast cash.
Think You're Being Scammed? How to Spot Job Scams
Employment scams can be tricky, so stay alert as a job seeker. Indeed has shared signs of job interview scams. Watch for these red flags:
- The job is too good to be true. Be wary of pay or perks that seem out of line for the role. Compare similar jobs to see if the offer makes sense.
- You cannot find the company's information online. If the company has no official site or social media page, that can signal the company is fake.
- The interview is only through instant chat. The privacy of instant chat can make it easier for a scammer to ask odd personal questions that do not fit the job.
- You have to pay for software. Be careful if you are told to pay for software for the interview. If the software is new to you, skip the download.
- The interviewer avoids your questions. If the interviewer gives vague answers or dodges your questions, they may be hiding key facts about the role.
What to Do if You're Scammed
If a job offer seems off, Rhonda Perkins, an attorney and Chief of Staff for the FTC's Division of Marketing Practices, says to start with a search. Look up the company name or the person's name plus the words scam, review, or complaint. Be thorough. Anyone can make a fake site or profile.
Then check the company or staffing agency in the Better Business Bureau's directory.
You can also contact the employer directly using contact info you found on your own, not from a cold message. That helps you check the job and how to apply. Our recruiting team also suggests using LinkedIn, Glassdoor, and other job boards to review the company, recruiter profiles, and current or past employees.
Never send money or share personal financial data, like a credit card number, during hiring. Some clients may ask for part of a Social Security number or a date of birth, but a request for full details can be a sign of fraud. Employers should only ask for your full Social Security number after you are hired. Even then, confirm who they are in person or over video before you share it.
If you lose money to a job scam, report it to the FTC at ReportFraud.ftc.gov.
Genesis10's Recruiting Practices Protect You
To help protect you from scams, Genesis10 uses these hiring steps:
- Genesis10 screens applicants by phone, video, and in-person meetings. It is common for a job seeker to speak with more than one recruiter. They will explain how they found your contact info and share details about the role.
- Genesis10 will never ask for payment during hiring or onboarding. We also never send checks to applicants to help them get a job.
- Genesis10 will not ask for sensitive personal data, such as a government ID number, by phone or email until you sign a formal written offer letter.
Genesis10 also gets weekly verification calls to our main phone line, marketing contacts, branch managers, and company leaders to confirm open roles and recruiter identities.
Always do your own research before you apply. If something feels off, trust your gut and move on.
Please contact us if a message or career chance from Genesis10 does not seem real.
Q&A
Question: Why are job scams becoming a bigger concern for job seekers?
Answer: Job scams are rising as more people search for remote work and as money pressure makes candidates easier to trick. The Better Business Bureau says money lost to job scams rose 250% in the first three months of 2023. The FTC also said business and job opportunity scams caused $367 million in losses in 2022.
Question: What are some warning signs that a job opportunity may be a scam?
Answer: Red flags include pay or perks that seem too good to be true, a company with little or no online presence, interviews done only through instant chat, requests to pay for software or fees, and interviewers who dodge direct questions. Be careful if a recruiter asks for money or pushes you to share personal or financial data too soon.
Question: How can candidates check whether a recruiter or job post is real?
Answer: Candidates should do their own research on the company, recruiter, and staffing agency using the Better Business Bureau, LinkedIn, Glassdoor, company sites, and other job boards. They can also contact the employer directly with contact info they found on their own, instead of using details from an unasked message.
Question: When is it OK for an employer to ask for sensitive personal information?
Answer: Employers should not ask for full sensitive information, such as a Social Security number or financial details, early in hiring. The article says employers usually ask for a Social Security number only after a candidate is hired. Genesis10 will not ask for sensitive personal data by phone or email until a formal written offer letter is signed.
Question: What should someone do if they lose money to a job scam?
Answer: If someone loses money to a job scam, they should report it to the FTC at ReportFraud.ftc.gov. They should also save the messages, stop sending money, and keep checking future job leads through trusted sources before they apply.
