How To Recognize Job Scams And Avoid Them

COVID-19 increased job scams by 70% in 2021, according to Federal Trade Commission data. Lack of job security and huge job losses caused many to seek any job, especially online and work-from-home.

This enabled all kinds of job scams. The biggest risk for workers is that illegal jobs are sometimes promoted the same way as “good” ones, making it more difficult to spot. It’s hard but possible.

Follow these tips to evade being caught up in job scams:

1. Stay on the Lookout for Red Flags

There are characteristics that the majority of work scams have, so if you are familiar with the common symptoms, you can avoid getting into problems.

Here are the 13 common signs a job is a scam:

• You’re promised to make a significant amount of money fast.
  No (or barely any) qualifications are necessary to perform the tasks, and nobody is trying to verify your professional experience.
• You’re asked to pay to apply for or get the job.
• You’re required to invest money before you can earn: buy equipment or materials, complete training, receive certifications, or similar.
• There is an acute sense of urgency—you’re supposed to APPLY NOW, or the opportunity goes away.
• Personal information is required too early on—before the official hiring process begins, “the employer” asks for your SSN, a picture of your driver’s license or other forms of ID, or banking details for a wire transfer.
• You’re expected to receive checks that you can cash immediately.
• You don’t remember applying for the job, but you get an offer (often via your personal email or social media).
• You’re invited to an online interview conducted through instant messaging apps.
  The sender’s email, company name, or the job ad itself looks fishy or contains errors.
• It’s hard to get any additional information: the contact person is vague and avoids answering questions and providing details.
• The company doesn’t show up on Google, or its website doesn’t look professional.
• The social media profile of the person reaching out has very few followers and looks fake.

Even one of those signs should be enough to make you question the validity of the proposition.

2. Identify Popular Types of Job Scams

According to a Stanford research, one out of every 10 adults in America is a victim of fraud each year. Certainly not the ideal job hunt data to be part of.

Another effective method for avoiding job offer frauds is to become familiar with the areas and jobs that may arouse suspicion. Some of them have been around for a long time, while others adapt or evolve, but the core of the scam remains consistent.

Here’s a list of ten common remote/online/work-from-home job scams to be aware of:

• Repackaging goods (postal forwarding). Those are most likely purchased with stolen credit cards, so you can unknowingly become part of a criminal operation.
• Reselling merchandise. Similarly, oftentimes the products to sell are actually illegally obtained.
• Envelope stuffing/postal job scams. Usually, involve paying a non-refundable sign-up fee to get started.
• Online data entry job scams. You should be cautious if there’s training you need to pay for, after which you’re promised to make unlimited money.
• Rebate processing. A popular commission-based work-from-home job scam.
• Assembling products. You’d typically be asked to purchase all the necessary materials first.
• Mystery shopping/secret shopper job scams. In this scenario, you’ll often be deposited a check to use for buying goods and then need to send some money back. That check would later bounce, and you’ll have to compensate for the losses with your own money.
• Personal assistant job scams (or nanny/other caregiving jobs). Similarly, this can feature money transfers that, in reality, are part of a money-laundering operation.
• Career consulting/job recruiting scams. While there are indeed headhunters or recruiting agencies who could help you find a job, they usually get paid by the employer when the candidate is hired—not by you.
• Investing with an instant/large return. This is how most pyramid schemes work—and that means somebody will inevitably lose all their money.

It’s important to understand that the job titles per se are not always a scam. But if the compensation is disproportionate to the effort/knowledge/skills required, it’s worth questioning their validity.

3. Take Measures to Dodge Job Scams

If you’ve discovered a job posting or received a job offer, use this employment fraud checklist to ensure it’s legitimate:

• Analyze the employer’s online presence. If you’re not seeing any social media activity, no website (or the URL/look/content is suspicious), and no location or other contact details are available—it’s a big red flag.
• Check online using advanced Google search hacks. Look for [company name] job scams—people would often share the details of their experience to warn others.
• Look the company up on LinkedIn, and see if people are working there—you can even reach out to them for details.
• Refuse the offer immediately if you’re asked to pay upfront—no legitimate employer should be asking you to invest anything before there’s a contract signed.
• Don’t provide your personal bank account details, and never agree to random wire transfers—this money will be close to impossible to recover.
• Request a second opinion from your friends and family—if you feel uneasy, they might validate your concerns.

You can report job scams you come across to Better Business Bureau© or the FBI Internet Crime Complaint Center.

4. Know Where to Look For Reputable Jobs

It’s nearly impossible to compile a comprehensive list of scamming websites because new fraudsters and schemes emerge all the time.

Using trusted websites with a proven reputation can definitely reduce fraud risks. The best job searchsites include:

• USAJobs
• USA.gov
• CareerOneStop
• Glassdoor
• Indeed
• LinkedIn

However, even if you are browsing respectable websites, you should double-check each opening. Job scams on LinkedIn or Indeed are still conceivable, so proceed with caution and keep in mind that if it seems too good to be true, it probably is.

Key Takeaway

Job scams are meant to appear enticing. The promise of easy money from the comfort of your own apartment is nearly seductive, but you may protect yourself by following these guidelines:

• Analyze the job opening for common job scam signs.
• See if the job is on the list of widespread job scams online.
• Go through our job scams checklist to ensure your safety.
• Use known job search sites to reduce the chances of encountering a job scam.
• Trust your gut. If something’s bothering you, take all the necessary precautions—it’s better to be safe than sorry.