Ridvan Celik | E+ | Getty Images
Thieves typically pose as recruiters and post fake job ads to lure applicants, then steal valuable information during the “interview” process.
The ITRC said these fake job listings are often posted on reputable websites such as LinkedIn and other job search platforms, making it difficult to distinguish truth from fiction.
The biggest risk is revealing information about financial accounts or sensitive personal information (such as Social Security numbers), which criminals could use to steal the identities of job applicants.
According to the Federal Trade Commission, consumers reported losing $367 million to job and business opportunity scams in 2022, a 76% increase from the previous year.
According to the FTC, the typical victim lost a “staggering” $2,000.
Employment scams aren't the most prevalent scam. According to the ITRC, employment scams accounted for just 9% of all identity fraud in 2023, second only to Google Voice scams, which accounted for 60%. (Google Voice scams trick people into sharing their Google authentication codes, which scammers then use for malicious purposes, often targeting people on Craigslist and Facebook Marketplace.)
But employment fraud is an “emerging” threat, said Eva Velazquez, president and CEO of the ITRC.
“Employment scams have been around for as long as there have been jobs,” Velazquez said.[But] “It's going to continue to grow because of all the external factors that are happening.”
One factor is advances in artificial intelligence, which experts say is allowing scammers to create job ads and recruitment messages that look and feel more realistic.
“AI tools can help refine 'pitches' to make them more believable and compensate for cultural and grammatical differences in language use,” the ITRC report said.
Additionally, the rise in remote work during the pandemic has made workers and job seekers more comfortable with digital-only transactions, Velazquez said.
Job seekers may never meet a real person during the fake hiring or interview process — they may only communicate with recruiters through text or WhatsApp messages, which Velasquez said represents a “huge red flag.”
He added that recent college grads, immigrants or other newcomers to the U.S. workforce might assume this kind of digital-only hiring is the norm, especially for fully remote jobs, but hiring generally doesn't work this way.
According to the FTC, scammers will “solicit money” during the hiring process.
You may receive bills for advance payments for work equipment (such as a computer) or job training, and according to federal agencies, the companies promise to reimburse you but don't.
The FTC said scammers may also ask for personal information up front, such as a driver's license, Social Security number or bank account details, in order to fill out “employment paperwork.”
More information on personal finance:
Why your work skills can make or break your next interview
Why a five-day return to the office seems unlikely
The job market remains strong, but “it's getting more competitive.”
“Scammers promise great jobs, but what they really want is your money and your personal information,” New York Secretary of State Robert Rodriguez said in a consumer alert this year.
Velazquez said job seekers shouldn't feel obligated to hand over any personal information until they've received and accepted a job offer (which is a good way to verify legitimacy, but it's not guaranteed to be safe in all cases).
Ultimately, according to the FTC, there is “no way to reliably detect” recruitment scams.
Here's what you need to know and how you can better protect yourself, according to Velazquez and the FTC.
- Don’t be lulled into a false sense of security by well-known job search platforms.
- Please independently verify that the company exists and is hiring. Don't accept a job offer until you have done your own research.
- Be careful if you don't contact a prospective employer or recruiter – instead, contact the company directly using contact information that you know is legitimate.
- According to Velazquez, the application process typically asks for only limited personal information, such as name, phone number, work history, education history and sometimes email address and home address.
- Digital-only interactions are a red flag, but even phone calls are no guarantee of security.
- No honest employer would send you a check to buy supplies or other things and then ask you to send back the leftover money – this is a fake check scam.
- Be wary of offers that seem too good to be true: For example, a job ad for 100% remote work that requires few skills and comes with a high salary “isn't realistic,” says Velázquez.
