Employment Scams - How Employment Scams Are Targeting Job Seekers
What is an employment scam?
Scammers advertise jobs the same way that legitimate employers do - on job sites, social media, in ads and on company sites. Scammers create a legitimate looking website to pass off as the company for which the applicant is applying to. The website of the illegitimate company looks real and the job posting appears professional, making it easy for victims to fall prey to this sophisticated scheme.
When scammers pose as legitimate looking companies offering remote job opportunities, they will:
Post what appears to be a legitimate looking job opportunity
Have a professional looking website for the company
Take the applicant through a typical interview process
A recruiter will contact the applicant to verify interest in the advertised position
The company will conduct fake interviews, which will mimic the feel of a real interview
Upon successful completion of the interview(s), they will offer the applicant the position
Upon acceptance of the position by the applicant, they begin collecting personal information and instructing the applicant to purchase work equipment
Note: We have also seen companies bypass the entire interview process and immediately offer the job
Are all employment scams created equal?
No! Employment scams vary in sophistication. Some scammers invest time in creating opportunities that look real. Some scammers do the bare minimum. The scammers who put in minimal effort are not successful to the same degree as the scammers who invest the time in building an illegitimate website that looks real and follow a professional application process. It is on you to recognize the red flags to determine if a job application process is a scam. Some employment scams are easy to spot but others are not, thus you must do your due diligence and run the legitimacy of the employer in question to the ground.
Read below for a real-life example of an employment scam.
What happens if I fall for an employment scam?
Once the applicant accepts the position, the fake employer sends a large paycheck to the applicant instructing him to purchase work equipment. The applicant deposits the check into his bank account to begin making purchases required by the employer. This check is fraudulent but the applicant has no way of knowing this.
By law, banks must make deposited funds available quickly (within 2 days). During this short window before the bank recognizes that a fraudulent check entered the bank system, the fake employer informs the applicant that an error was made and too much money was given to the applicant. The fake employer instructs the applicant to return some of the money immediately. The applicant then sends the “extra” money back to the fake employer. Unfortunately, too many people fall prey to this and lose thousands of dollars daily.
There is a tremendous sense of urgency here because the fake employer wants the applicant to transfer the money before the bank notifies the victim of the fraudulent check.
How do I lose money in an employment scam?
Within weeks, the applicant’s bank will finally determine that the check is fraudulent. Upon discovery, the bank will withdraw the entire amount originally transferred by the fake employer. The applicant ends up losing the amount that he transferred back to the fake employer and any money spent on equipment that was instructed to be purchased.
The chances of getting this money back from the bank are slim to none.
What are red flags in an employment scam?
There are several red flags to look out for with employment scams:
Too Good to be True Offers - If it sounds too good to be true, it probably is. For example, if you are offered an unusually high salary for minimal work or qualifications
No Experience Necessary - High paying positions will require experience. If you are offered a high salary and do not need experience for the position, be cautious of the offer
Vague Job Descriptions - Some scammers provide minimal details about a position. If there are minimal details about the responsibilities and requirements of the position, be cautious of the offer
Poor Communication and Grammar -Communication from the fake employer can be poorly written with grammatical errors
Pressure to Act Quickly - Scammers pressure applicants to make rushed decisions and to take immediate action. For example, scammers will rush the applicant to transfer money to the employer for work related expenses (ex. to purchase equipment)
Unprofessional Email Addresses and Websites - Legitimate companies typically use professional email addresses and have well-designed websites. Be suspicious when job offers are from generic email addresses (e.g., Yahoo, Gmail,). Be weary if the company’s website is poorly designed
Request for Personal Information - An employer will not ask you for sensitive personal information (e.g., Social Security number, bank account details) early in the hiring process. This information is requested late in the hiring process. You should see many red flags before you get to this point
Lack of Verifiable Information - Verify that the company has a solid online presence and company reviews
Unsolicited Job Offers - Be cautious if you receive an unsolicited job offer
Upfront Payment Required - An employer will not ask for payment for training, equipment or to conduct a background check. Legitimate employers typically cover these costs
Always conduct thorough research on the employer before proceeding with the application process. More often than not, rudimentary research on the employer will immediately identify that the company is illegitimate and that you are being scammed.
What do I do if I get scammed?
There are several primary steps you need to take immediately if you fall victim to an employment scam to minimize the impact of the scam and protect yourself from further harm:
Stop All Communication - Cease all contact with the scammer
Notify Your Bank or Financial Institution - Contact your bank or credit card company immediately if you provided financial information or made a payment to the scammer. Often times financial institutions are unable to do anything, but it is worth a try to see if they can reverse any unauthorized charges
Report the Scam - File a complaint with your local consumer protection agency, labor department, or law enforcement agency. Provide them with all the evidence you've gathered. Also, report the scam to the platforms where the job application originated (e.g., Instagram or Squarespace (who hosts the site)) so the owner of the site can shut the fake website down
Document Everything - Gather all correspondence, emails, messages, and any other evidence related to the scam. This documentation is for you to keep track of exactly what happened and to provide to authorities
Monitor Your Accounts - Monitor your bank accounts, credit card statements, and any other financial accounts for any suspicious activity. Report any unauthorized transactions to your bank or financial institution immediately
Protect Your Identity - If you provided personal information (e.g., Social Security number, driver's license information, etc), place a fraud alert or security freeze on your credit report to prevent identity theft
Educate Yourself - Learn from your experience to avoid falling victim to similar scams in the future. Be cautious when applying for jobs online, especially when they seem too good to be true or require you to provide sensitive information up front. Continue to learn about scams and fraudulent activities through our blog, Instagram page and other credible resources on identity theft, imposter scams, and unemployment scams.
Seek Support - Millions of people fall victim to these scams daily. If you are a victim, you must continue on but know that support is there for you. There are resources available to help you through the situation
What is an example of an employment scam?
Below is an example of a recent employment scam. From first glance, the job offer appears legitimate. However, when you dissect the email line by line, there are many red flags.
Employment Scam Email Example
Let’s break this email down:
Red Flag 1 - The company name is “techsavvysoftware.com”. If you run a search of the company, a legitimate website appears. However, when navigating the entire site, it is evident that the site was thrown together quickly. There are misspellings, missing content, and inaccurate information. Google the company name and the sender name and see if there are any other legitimate references to these. In this case, there are not
Red Flag 2 - You have been identified as the ideal candidate for the job. How can this be the case if you have never interviewed with the company?
Red Flag 3 - There are several typos throughout the document. Typos are often one of the first indicators of a scam
Red Flag 4 - The sender immediately identifies a start date. This is suspicious as you have not even had a telephonic conversation about the offer yet and you are already being told when to start
Red Flag 5 - The salary is $800 for 15-20 hrs of work. That is $53 per hour for a total of 15 hrs. This is a great salary but not realistic. Again, the company has yet to discuss your skills with you. How do they know you’re even qualified to get paid $53 an hour. High salary offers are another telltale signs of a scam
Red Flag 6 - The sender finally mentions a proficiency test on day 1. However, even if you do not do well on the proficiency test, you will have a job. This is an attempt to depict some legitimacy on the company’s part but the entire process does not make sense
Red Flag 7 - There is mention of overtime work but no specifics. The lack of details around this entire offer is alarming. Referencing the employee handbook as the source that will tell you more about this position is a clear flag. A legitimate company will always have a recruiter call you to discuss the position before the interview process and post decision process
Red Flag 8 - The CEO and founder of a company is not going to be emailing you to make a job offer. The CEO and founder will have someone else doing this task
You will spot these red flags as long as you are reviewing the communication with a critical eye. Remember, if it sounds too good to be true, then it probably is.
Where do I learn more about the different types of scams?
Follow us on Instagram and read our blog! We will bring you the most current content to educate you on scams and the evolving fraud threat landscape. Additionally, visit the Federal Trade Commission (FTC) and the Better Business Bureau (BBB) for some of the most reputable resources available to learn about the different types of scams and how to protect yourself from them.
Sign up on the Home page for a free guide on the 10 Largest and Most Notable Scams to be aware of in 2024! This simple guide will give you the tools needed to recognize the basic red flags of a scam in progress.
