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Fraudsters are getting better at scamming job seekers. Here’s how to avoid becoming a victim

1st May 2024 | 09:00am

Fake job postings aren’t new, but they are getting harder to spot, and easier to fall for.

That’s because many of the red flags experts used to warn job seekers to look out for no longer apply. For example, fraudulent job postings were traditionally riddled with spelling and grammar errors, but new generative AI tools like ChatGPT have made it easier than ever to whip up a realistic ad for a fake job.

TopResume career expert and Fast Company contributor Amanda Augustine adds that she used to warn candidates to be wary of job offers for fully remote positions, or those that required candidates to participate in a remote interview on an unfamiliar platform. But that’s no longer a warning sign, she says.

“It’s no longer uncommon for you to be able to get an entry level position that’s fully remote,” she says. “Today, we also use a lot of different technologies in order to interview and screen people.”

Augustine adds that such scams typically target those with less experience navigating the traditional hiring process, like new immigrants and younger, entry-level workers. In fact, Augustine admits to falling for an employment scam early in her career, accepting a B2B marketing position that sounded promising but proved to be door-to-door sales.  

“I just wanted to move out of my parents’ house and start my adult life and was much more open to opportunities than anybody who was more experienced would know right away is not real,” she says. “[Entry-level workers] haven’t been in the job market, they haven’t seen the ins and outs and gone through it to be more wary of the red flags.”

And now is an easy time to get scammed, says Zulfikar Ramzan, the chief scientist and EVP of product and development for digital security provider Aura. He says a more challenging or active labor market typically spurs more fraudulent activity, and the current landscape seems ripe for those looking to take advantage.

“The latest jobs report shows there were more than 300,000 jobs added in March, and whenever we see reports like that, inevitably scammers take advantage of the news, and realize there’s a bigger opportunity,” he says. “All the stuff happening in the tech sector, all the layoffs, means there are more folks who are open to work than there would have been in the past, which also means more will get caught up in these job scams.”

According to the Better Business Bureau’s 2023 Scam Report, employment scams are the second-riskiest scam type as measured by victim susceptibility. These sorts of scams increased by nearly 55% between 2022 and 2023, with losses averaging nearly $2,000 per victim.  

The proliferation of sophisticated technologies that make fraudulent job postings look more credible, the rise of remote work, and the current state of the labor market are creating a perfect storm for employment scams. Here’s how to avoid becoming a victim: 

If It Looks Too Good to Be True, It Probably Is

The single-biggest red flag that experts warn to look out for are job postings or offers that seem too good to be true. If a recruiter appears out of the blue to offer a role that represents a significant promotion or an unrealistic pay increase, they recommend maintaining a high degree of skepticism.

“If they’re offering you the job right away without any real screening, or they’re promising you a huge income if you work really hard the first year, that’s a really big sign that something’s off,” says Augustine.

Trust Your Gut, and Ask Questions

With those red flags becoming harder to spot, Augustine says it’s becoming even more important to trust your instincts. While there may not be a single, glaring sign that indicates fraud, often there are multiple smaller warning signs that suggest something is amiss.

“If someone reaches out to you, and you didn’t necessarily apply for a job, always ask probing questions up front before you waste your time pursuing something that may not be legitimate,” she advises.

Never Provide Money or Personal Information

Employment scams can take many forms, but they often have the same aim: to make money. That could come in the form of a direct payment from the victim, such as a fake job that requires the purchase of training materials or equipment, or from stealing data that could be sold or used for identity theft.

“The challenge in this space is once you give away your social security number, you’ve given it away for life—you can’t get it back,” Ramzan warns. “We often see situations where the act of the ID theft is years after the attacker got the data because it’s been bought and sold and repackaged on the dark web.”

Ramzan emphasizes that real employers typically don’t ask for sensitive data during the recruitment process and will only ask for personal information after a contract is signed.  

Ramzan recommends that those who fear they may have given away their data to a fraudster utilize credit monitoring and ID theft monitoring tools, which can provide a warning if the data is used. Aura also offers a free email-scanning tool that can determine whether a job offer is being sent from a reputable source.

Why Some Job Scams Actually Put Victims to Work

Other scams, Ramzan says, go even further than the theft of data or cash, and engage victims in unrelated crimes without their knowledge.

“They actually are doing the job, but the job involves conducting illegal activities,” he says. “Sometimes, it’s like here, go cash these checks, wire us the money and keep some for yourself—that’s a common mechanism for scams. The courier service is another one—some scams involve delivering [illegal] packages.”

Ramzan warns that even those who aren’t aware that their new job includes illegal activities can be held criminally liable for taking part.

Be Wary of Time Limits

The longer you spend thinking things through, the more likely you are to identify a scam for what it is. That’s why fraudsters typically try to impose a false sense of urgency, says FlexJobs career expert Keith Spencer.

“Scammers will often apply overwhelming pressure or give you a sense of urgency to move through the process, saying you’re going to miss out on this opportunity if you don’t hurry,” he says.

Spencer adds that the hiring process typically takes several weeks, even when there’s an urgent need. If a recruiter is pushing the process along too quickly, that could be a sign that it’s fraudulent. 

Cross Reference, and Report

If a job opportunity comes with any red flags, Spencer says the best way to verify it is by double-checking some of the data that’s been provided.

“I would find that company’s actual hiring page and see if the job that the person is reaching out to me about, or [that] I saw somewhere on the internet, is listed on the company’s website,” he says. “If someone reaches out to me, I’d also go to the ‘people’ tab on LinkedIn to see if that person actually works with or is associated with that organization.”

Spencer also advises checking the Federal Trade Commission, the Better Business Bureau, and even social media sites to see if those employers or recruiters have been flagged previously. Similarly, he recommends those who identify fraudulent recruiting activity to take the time to post those reports themselves, so they can prevent others from falling prey.

“People get embarrassed and don’t want to share with others when they’ve gotten scammed, but these scams are getting sophisticated, so there’s really no shame. You shouldn’t blame yourself,” he says. “Share that information, and if you have fallen victim, notify the authorities.”