As technology continues to grow and evolve, more and more of our lives move online. This trend also extends to our jobs, especially when it comes to searching for and applying for work. Unfortunately, this shift can lead to eager employment seekers becoming unknowingly targets by scams.
With the rise of online job searches and applications, there has also been a substantial increase in employment scams. Understanding how to spot these scams and knowing the steps you can take to prevent falling into fraudsters’ traps is essential.
Understanding Job Scams
A recent surge in employment scams has been circulating on common job-seeking websites and social networks, including LinkedIn. While the specifics of the scheme may shift, the overall function remains the same.
For example, an enthusiastic recruiter sends you a direct message on the platform, stating that you would be a perfect fit for a role they seek to fill. Here are three common scam scenarios that often happen next:
- The fake recruiter sends you forms to complete so they can get your profile set up with the company. As innocent as it may seem to complete paperwork as part of the hiring process, these forms can be created to steal your data. You might be tricked into sharing your financial account information, driver’s license number, or Social Security Number, all for a job that doesn’t exist.
- You receive an invoice from the “company” for equipment costs needed to set you up as a new employee. The recruiter claims that you need to purchase the equipment out of your own pocket, and the company will reimburse you after your hiring date. Spoiler Alert: they won’t! Never provide money upfront to an organization looking to hire you.
- The recruiter requests you to create an original piece of work for them to pass on to the hiring manager to gauge interest and skill. They may request an article, a design, a webpage, or other work relevant to the job, claiming it’s to see if your work aligns with their goals. Unfortunately, this nefarious scheme is designed to steal work from eager job seekers. Once you hit send, you’ll likely never hear from them again.
Employment Scam Red Flags
Job scams are constantly evolving. While the previously mentioned examples are common trends, fraudsters work daily to make their offers and ploys more believable. As you search for positions on LinkedIn and other job-recruiting websites, be on the lookout for the following red flags:
- Offers that sound too good to be true: If the job claims outstanding pay for minimal duties or few hours, it’s likely not a legitimate opportunity.
- No interview: If you are granted a job without going through a formal interview process, the job probably isn’t real or at least isn’t what was promised. Legitimate companies typically require a thorough vetting process before extending an offer.
- Exclusively virtual communication: The recruiter only communicates or conducts interviews with you online via chat or email but never schedules a phone call or video meeting. Remember, you’re supposed to vet the job just as they vet you as a candidate! Ask to set up a phone or video interview to verify if the job and recruiter are legit.
- Vague job descriptions: If the recruiter can’t provide you with specific details about the job or the company, it may not exist. Don’t be afraid to ask questions and push for additional details to get a clear picture of the role and if it’s right for you.
- Numerous errors: Although everyone makes mistakes from time to time, excessive errors regarding spelling or grammar or inconsistencies in the company name and URLs are tell-tale signs that something is amiss.
- Requesting upfront payment: If you’re informed that you need to pay upfront for training, equipment, or other costs and are told that you will be reimbursed later, that’s a surefire sign of a scam. Legitimate businesses will have funds and processes in place to cover new-hire enrollment.
- Demanding free work: Potential employers requesting samples of your existing work is an acceptable part of the job process. However, you deserve compensation if you’re expected to devote time to creating new work as part of the process. Companies demanding that you create new pieces for free is a calculated ploy to steal ideas and take advantage of folks who may be desperate for work.
- Collecting sensitive data: Verifying your identity and setting up payroll are standard procedures when onboarding a new hire, but not before you’ve even been offered the job. Do not provide personal info until you have officially accepted the role and started the onboarding process.
How to Stay Safe from Job Scams
When seeking new employment opportunities, you must have the knowledge and know-how to identify legitimate businesses and avoid scammers. Follow these tips as you begin your new job search:
- Research the company online to determine if it’s legit or not. Check reviews on sites like Glassdoor or the Better Business Bureau.
- Search the company’s website for the job posting and only enter your information on forms found through that workflow. If you can’t find the job posting anywhere else online, it probably isn’t real.
- Never provide upfront payment or fees for job equipment, training, courses, certifications, or any other part of the hiring process.
- Don’t fill out any paperwork or provide personal data until the recruiter has provided you with all the details about the job and the company. Even then, refrain from providing sensitive information, such as your financial account information or Social Security number, until you’re confident you’re working with a legitimate business.
- Lawful companies won’t ask to pay you via cash or P2P apps like PayPal, Zelle, or CashApp. If the employer only offers payment via nontaxable methods, it’s a sign something isn’t right.
- Don’t give away your hard work for free. Ask for compensation for any projects completed as part of the hiring or vetting process.
- Don’t be afraid to ask further questions or push back on anything that doesn’t feel right. Trust your gut!
Resources if You’ve Been Affected by Job Scams
If you think you may have fallen for an employment scam on LinkedIn or anywhere else, take advantage of these resources to help you.
- Keep records of all communication regarding the role. Screenshot job postings, direct messages, etc. Even if the fake recruiter deletes them, you still have proof.
- Report the messages or posts to LinkedIn or whichever platform you used.
- Report the crime to local law enforcement and file an official police report. This step is crucial for your financial institutions and the credit bureaus to help guard you against future financial crimes and credit score damage.
- Report the fraud to the Federal Trade Commission: https://reportfraud.ftc.gov/
We’re Here to Help!
Whether you’re seeking your first job or looking to change positions, the job hunt can be exciting and stressful. Scammers play with victims’ emotions and make false promises to get jobseekers to lower their guard. Always remain vigilant and remember – the right job will eventually find you.
If you suspect you were targeted by a scam or have been a victim of fraud, contact us immediately. Our team is here to support and guide you through any issues or concerns. Please stop by any branch location or call 800-782-4899 to speak with a team member today.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.