In the Digital Economy, Job Hunters Beware

Sophisticated Job Hunting Scams Require Savvy Fraud Protection

Over the last couple of years, organizations from the United Nations to Amazon and Target have had the unpleasant task of telling eager new hires that . . . they’re not really hired. Experts say that for every legitimate online job posting, there are around 80 scams. Thousands of Americans each year now fall victim to scams in which criminal organizations impersonate legitimate businesses in order to steal personal information, money, and more. As the digital job marketplace has grown, so too have employment scams. While the online job market offers great new opportunities for remote job-seeking and work, it also brings with it the perfect breeding ground for fraudsters to con eager job seekers out of much more than they bargained for.

According to the FBI, victims of employment scams lose an average of $3,000. Other potential losses include damage to a victim’s credit rating and even the risk of being charged with check fraud or money laundering if they handle funds from their fake employers. Then there’s the time lost in pursuing a fake job opportunity. In one case reported to the FTC, a victim even quit her job after accepting a fake job offer.

Employment scammers have become much more sophisticated in their tactics. They advertise alongside legitimate companies and recruitment firms. They put up credible-looking websites for the employers “represent”, and conduct interviews online, complete with phony recruiters and managers. They send offer letters, contracts, background check forms, job training materials, and more. All while collecting personal information from all of the forms that people willingly hand over. Some have even asked new employees to send money for supplies or equipment, training materials, or certification applications. Others send fake checks for work supplies, then ask for the money back, leaving the victim to discover that the original check bounced. As Katherine Hutt, a spokesperson for the Better Business Bureau told reporters, “Anyone can be a victim or a target. We’ve seen these scams cross all levels of incomes and required skills.” So, if you’re job-hunting online, you need to be on the lookout.

Whether you’re looking for a traditional position or a non-traditional work-at-home gig, here are some ways you can protect yourself from employment scams:

• Check out the company: Make sure the company you’re interviewing for is real. Look at their website and make sure everything looks legitimate and the job you’re applying for is actually posted there. If you type in the company’s web address at Domain White Pages, you can find out when the website was created. If the website is less than a year old, be on your guard and continue to do more research.
• Read communications carefully: Scammers also impersonate well-known companies, so look at email addresses and URLs in their communications and make sure they match the real thing.
• Check out the recruiter: If you’re dealing with an HR person and/or hiring manager, do a search on their name or check out their LinkedIn profile to make sure names, photos, and other details match. If you’re approached by a recruiting firm, call the company with the job and confirm that they are really working with this recruiter.
• Watch for clues in the interview: First of all, legitimate companies will use secure conferencing services such as WebEx or JoinMe for online interviews, not Google Hangouts or instant messaging. If the interview channel seems OK, use the interview to ask detailed questions about the job, the company, the hiring manager, the team, etc. If they’re vague or avoid answering your questions, that’s a sign that they’re fake.
• Never give personal information during the job recruiting process. Don’t supply your Social Security number, images of your passport, bank account number, or credit card numbers until you start work, and then supply them in person, if possible.
• Never pay: If you need any certification, training materials, equipment, etc. your employer should be covering those costs.
• Go with your gut: If anything seems fishy, stop. If the job pays too much for the amount of work, if you’re offered the job too quickly, if the HR or recruiter’s email address doesn’t match the company’s URL, or anything else seems off, odds are that it’s a scam. (Remember, there are 80 scams out there for every legitimate job posting.) The Better Business Bureau and the Federal Trade Commission are also great resources to find out about or report online job scams.

Even savvy job hunters can fall prey to employment scams. A study conducted by the Better Business Bureau, FINRA, and the Stanford Center for Longevity found that employment scams are among the most common and successful right now. Of the study respondents who reported employment scams, 81 percent had engaged with scammers, and 25 percent had lost money. So, good luck with finding your dream job, but proceed with caution. And if you think you could never fall prey to a job scam, think again.