Recognizing and Avoiding Employment Scams

Search

Search

Summary:
Employment scammers create fake employment opportunities in order to gain your personal information. The interview is usually conducted via google hangouts. Scammers will send a fake bank check and require a portion of the money to be sent to a third party.

Please note: If employment scammers are in possession of your personal information, identity theft may occur. How do scams lead to identity theft?

Jump to:
How does the employment scam work?
What happens next?
It’s a goldmine for scammers
Real-world example
What to do if you’ve been scammed?
Employment scam blacklist

One of the most stressful experiences most people face is the prospect of finding a new job. This is especially true if someone has just lost their job or are extremely dissatisfied with their current place of employment. Scammers know it and have devised a variety of methods to convince people they can get them or give them a job that’s easy to do and pays thousands of dollars a week. For too many desperate people, they take the bait.

How the employment scam works

The employment scam usually begins with an email offering a job as an account manager, secret shopper, or requests that you buy supplies that you need to do the job they are offering and will “front” the money for your expenses.

After a victim responds to the scam, applies, and accepts the job, they are pleasantly surprised to see that checks and money orders soon arrive.

The job description instructs them to cash the check, money order, or accept a wire transfer and send a percentage of the funds to a third party – the scammer’s accomplice.

The victim is then told to keep the remaining percentage as their payment or to use the funds to buy equipment they need to continue performing the job.

What happens next?

The victim learns very soon from their bank or financial institution that the check, money order, or wire transfer was fraudulent and now the victim is entirely responsible for either paying the entire amount back to the bank, or the bank subtracting the amount owed from the victim’s account.

If the transaction results in the account being overdrawn, the bank will not only pursue the victim for the remaining amount from the fraudulent transaction but also close the account.

The employment scam is a goldmine for scammers

Even before the checks or money orders bounce, the scammer will no doubt have collected information from you as part of the fake job application process. A lot of information.

• Personal information
• Social security number
• Financial information

Everything they can convince you to divulge under the pretense of helping you to fill out a job application, do a background check, do a credit check, deposit and manage the funds that will be sent to you and everything else that you might encounter when applying for a legitimate job.

Our investigations into Common Scams of 2023

It’s the classic scammer double dip. They want to steal your money and they want to steal your identity.

Employment scams usually scam money from victims in a variety of ways, but the employment scam can be one of the most damaging based on the amounts involved.

Here’s an example from a victim

“I was contacted regarding a consumer analyst position with a company and they offered me a position which was to secretly evaluate their customer service by posing as a potential customer. I was notified that my first assignment was to evaluate a local Money Gram location and payment would be sent via USPS to cover costs and my compensation for completing my first assignment.

On 1/07 a check arrived via USPS. It appeared to be a very authentic-looking check for $1,680.00 and my bank proceeded to cash it and provide me with the funds to complete the necessary transaction through Money Gram minus my payment. Supposedly, another analyst would complete the evaluation by picking up funds sent and evaluating the completion of the Money Gram transfer.

On 01/12/16 my bank advised me that I was overdrawn, and the business check was returned unpaid. I am in the process of repaying all funds and fees. I tried contacting the company, but I know there is no hope of recovering any of the money I lost by associating myself with this deceitful company and individual.”

It all happens fast

For this reason, the employment scam is often accompanied by a sense of urgency and an immediate call to action. This is a common behavior in many scams but is critical for the employment scam to work.

Here are some examples

• “No Job Interview Required”
• “We Need to Hire You Immediately!”
• “The extreme importance of the position requires extensive and confidential information”
• Interviews conducted over google hangout or other online-only communication methods.

The scammer may tell you that because they are trusting you with significant amounts of money that they will transfer to you, they will often emphasize how important it is that you provide verification and significant information to establish your “trustworthiness.”

What to do if you’re the victim of an employment scam

• Report the scam to your local police and file a police report. Do not call 911. Call the regular number for the police department.
• Report the scam to any and all financial institutions you are associated with that have received any funds from you on behalf of the scammer. Inform them that a scam has occurred and file a scam complaint with the bank.
• Contact your state Attorney General’s Office and inform them of the scam and file a report with them.
• Report the scam to the FBI.
• You can also report the scam to the U.S. Government website: ww.usa.gov/stop-scams-frauds
• If the scam appears to have originated from a well-known company, they are as much a victim of the scam as you are. Notify the company and let them know that scams are occurring under their name.
• Expose scammer’s website, email address, name, and phone numbers to the general public on websites such as SCAMGUARD™.

Our investigations into Common Scams of 2023

Due diligence is the key

Make sure you know who you are dealing with anytime anyone contacts you with regard to an employment opportunity. Applying for a job is a well-organized and disciplined process and anyone who departs from standard professional behaviors and communication is most likely engaged in an employment scam. If you are unsure about the legitimacy of an employment opportunity, use our free scam analysis tool here.

Attention: Consumers who have been contacted by employment scammers could have had their personal information breached. TotalScam!™ highly recommends that consumers whose information has been breached obtain identity theft protection service immediately.

There are several companies that offer identity theft protection in the US. One of the most inexpensive options we were able to find is the protection offered by LifeLock. You can start your protection here.

Disclaimer: The information and opinions contained on this site are not endorsed by LifeLock. TotalScam!™ receives compensation from LifeLock. This helps support our scam prevention efforts.

FAQ

Employment Scam Blacklist

The following phone numbers, websites, and emails have been reported to us by the consumer. If you feel this information is incorrect, you may submit a request for removal or correction by contacting us using this form.

Our investigations into Common Scams of 2023