Job Scams
It’s an amazing employment opportunity – or is it? Unfortunately, scammers hijack the job market and ensnare hopeful job seekers into their schemes. If you’re job-hunting, reviewing how these scams play out and how you can avoid them is a good idea. To help you out, we’ve put together a short primer on what you need to know to stay safe from job scams.
How the scams play out
There are several variations of job scams. However, here are the most common ones:
- Bogus job listing. There’s a Help Wanted ad for a dream job. The eager job-seeker applies, sharing their information and paying a small fee for an interview or resume submission. Unfortunately, the job doesn’t exist, and they’ll never hear from the “employer” again.
- Imposter hiring. An alleged rep from a well-known agency, government institution, or hiring firm reaches out to a target, asking them to send the funds to cover a screening fee to be considered for a job. While the job does exist, the representative is a scammer, and the money the target has shared will go directly into the scammer’s pocket.
- Phishing emails. Like any phishing scam, a person is targeted directly via email. The email will offer the target a fantastic job, but first, ask that they share confidential information. If the target complies, they’ll give their personal information to a scammer.
- Inflated payment scam. The scammer will hire a target candidate for a remote position in this ruse. When payday arrives, the target will receive a check written for more than the “new employee” should have received. The employer will ask them to cash the check and mail back the extra funds. Unfortunately, a few days later, when the check doesn’t clear, the target realizes they are the object of a scam.
How to spot a job scam
Identifying the signs of a job scam can help you avoid them and find gainful employment. Here are some red flags to watch out for a while job-hunting:
- The emails the “company” sends are highly unprofessional.
- There’s no street address for the company.
- You’re asked to pay an upfront fee before you’re even hired.
- You’re asked to share personal information before an official contract is signed.
- When “hired,” you’re underworked and overpaid.
Before applying to or accepting a job offer:
- Do thorough research.
- Ask for references from past or current employees. And check out the company website to see if it’s secure and has factual information about the firm. This should include a street address.
- Check out the company’s social media pages, like LinkedIn.
- Don’t be afraid to ask the employer, or the hiring person, any questions you may have about the company or the job.
Job-hunting can be stressful, but getting caught in a job scam can bring that stress to a whole new level. So stay alert and stay safe by following the tips outlined in this post. And if you like this post, make sure to check out our MoneySmart Tips blog.
