Common Job Scams and How to Avoid Them

Unemployment already puts you in a vulnerable position. Scammers know you’re eager to get a job fast. Read this article to learn about the most common job scams, their red flags, and what you can do to protect yourself. 

10 Common Job Scams

The sad, scary reality is this: Scammers prey on people in vulnerable positions(looking for a job)

Scammers impersonate professionals (send emails/messages from their hacked or imitative accounts)

They are everywhere (social media, job sites, linkedin, unsolicited in your email)

job-related interactions that are scams

The Fake Check Scam

The name says it all: someone--posing as a recruiter, HR manager, etc.--sends you a fake check. They tell you to deposit it into your personal bank account, spend some of the money for yourself, and send the remaining amount to the fake company. 

In this scenario, scammers commit chargeback fraud: they exploit a bank’s requirement to make check funds available no more than two after its deposit, even though it takes longer to verify the realness of the check. 

Though it may look convincing, the fake check is detected and the deposited amount is charged from your account. On top of potential fees, fines, and misdemeanors, you have to pay the bank the deposited amount. 

There are several excuses a scammer may reason why they want to send you a fake check:

1. They are sending you money so you can purchase equipment or training for your job.

2. They are an international company and are having trouble transferring domestic funds.

3. They are paying forward for your employment or services.

4. They need to cover fees associated with your employment.

5. Your job title is Payment Representative, your job description is to receive and redirect funds, while earning a commission for your services. 

Of course, scammers will use a slew of other excuses explaining why they want to send you a check. To be clear, no employer will ever send you a check before becoming an employee and working your first pay cycle. 

The Repackaging or Reshipping Scam

This scheme is sometimes given the professional, upright title of postal forwarding. In this scam, desperate job seekers are tricked into handling stolen mail and items. Like the fake check con, this act carries legal implications. 

In this scheme, victims receive, repackage, and ship stolen property to the scam operators. 

Fraudsters recruit unknowing victims in this crime promising them an easy, lucrative work-from-home opportunity. People who fall for this trap expect payment for their services and out-of-pocket shipping fees. Of course, they never receive a cent. 

Mail forwarding is not a work-from-home job. It is a service to be performed by a mail service representative at a mailing facility. The mail is hardly ever repackaged. 

The Assembly Scam

Another work-from-home trap is the assembly scam. In this swindle, individuals seek to earn a living by receiving, assembly, and shipping product parts (like furniture or crafts). They are duped into paying an enrollment fee to receive access to a list of assembly companies. Crooks convince job seekers to pay for craft products by promising a reimbursement--after they assemble and ship the product. 

Some promise funds immediately after shipment. Some scam institutions promise funds after a probationary period. Unsurprisingly, the payment never comes. The most likely outcome of this scam is you pay an enrollment fee to view an empty or outdated job board. 

Even if you are hired for a job, you may not ever receive parts to assemble. If you do receive and assemble parts, scammers will always reject the assembled product, stating it does not meet quality requirements. 

The Mystery Shopping Scam

Legitimate mystery shopping jobs do exist, but the amount of illicit mystery shopping programs outweigh the genuine ones. People who fall for mystery shopping scams hope to make easy money. In this job scam, fraudsters require shoppers to pay a myriad of fees: enrollment fees to join their exclusive program, certification fees to receive proper training, member fees to view shopping directories, and more. 

Authentic mystery shopping programs will never ask shoppers to pay. Mystery shopping programs make money from the companies that hire them to send secret evaluators, not from the shoppers themselves. 

The Grant, Training, or Credential Scam

This scheme preys on job seekers looking for opportunities to level up their skills and qualifications. In this hoax, victims receive unsolicited emails from a bad actor impersonating a government or educational entity. 

The email says the recipient is eligible to receive a grant from the government or an educational institution. The email attempts to trick the recipient to click a predatory link. The link either directs to a fraudulent website that will harvest your personal information, or it will activate malware on your computer.

The Job Placement Scam

The job placement scam targets people desperate for work. Individuals in these positions need help with finding opportunities, sharing their information, and interviewing. Crooks in this scheme pose as staffing agencies that promise to aid job seekers with these tasks and if they pay membership fees.

The Tech Support Scam

Another dupe disguised with the intent to help you is the tech support scam. In this trick, individuals on job search sites receive emails from swindlers impersonating tech support employees. 

Typically, you will receive an email stating you have an urgent tech or security-related issue with your account. This strategy utilizes a variety of exploitative tactics like unsafe links, personal data-mining forms, or demands to pay a fee for support and solutions. 

How do you tell an imposter from an actual tech support employee? One certain way to verify is with the sender’s email address. First, they should have a professional address composed of their first and last name. Second, their email address should be located within the job search site’s domain. For example johnsmith@snagajob.com. 

The Background Check Scam 

Crooks use background checks as an opportunity to release sensitive information so they can commit identity theft. Thieves posing as recruiters have endless reasons why you must share personally identifiable information for your check, including:

• To verify your identity or citizenship

• To validate your skills and qualifications

• To confirm you are financially credible

Scammers will tell you you need to copy, fax, or email highly sensitive information like your:

• Birth certificate

• Driver’s license

• Passport

• Social security number

• Birthdate

• Banking information

This is often a difficult scam to navigate because most employers need your birthday and SSN. If you encounter a recruiter that asks for a physical or digital copy of the above items--in addition to your date of birth and SSN--it is likely an identity fraud attempt.  

The Unsolicited Job Opportunity Scam

Take any unexpected job-related email with a healthy dose of skepticism. Scammers aim to reach a large number of people, so they pose as businesses reaching out to job seekers. Unless you applied to the company that’s emailing you, you’re likely the target of a phishing scam. 

Phishing is an email scam that attempts to lure victims to visit risky websites. Phishing emails contain links disguised as legitimate ones, but redirect to fake websites infect you with malware and harvest sensitive data with forms. 

In the unsolicited job opportunity scam, you receive an email that may say things like:

• “You’ve been selected to interview at [Company Name] . . .”

• “Your skills make you eligible for our [Position Name] role . . .”

If you are skeptical of your email, look up the person who is contacting you. Try to verify if they are an actual employee of the company in question. Another measure you can take is to hover over suspicious links before clicking on them. The link may have a legitimate address, but once you hover over it, it may have a completely different address. 

The Multi-Level Marketing Scam

Multi-level marketing, also called pyramid schemes, are legal scams. Multi-level companies are predatory entities that generally target women and stay-at-home moms in particular. Companies like these attract individuals by promising a way to earn a lucrative income with a flexible, work-from-home schedule. 

In a pyramid scheme, individuals either pay membership fees or buy products they must sell. 

People can make money from these jobs by selling products and recruiting new sales team members. 

However, the likelihood of making a profit rarely happens. The most common outcome is that these companies leave individuals stranded with loads of products they cannot sell. In an attempt to compensate for the money lost on their unsellable products, pyramid scheme employees scramble to recruit new employees to gain meager commissions. These recruits buy the same product, fall into the same predicament, and the cycle continues. 

Red Flags of a Scam

Beware these red flags to protect yourself from becoming an unknowing victim while on the job hunt. 

Submitting Personal or Sensitive Information

You should never submit any personally identifiable information unless you have verified the people you are interacting with are real employees. If you’re unsure about your points of contact, call your prospective company’s HR department to verify. This should be a straightforward process where you state your concerns and the details of your interactions with your points of contact. 

Paying For Something

If you have to pay for anything before you begin working, you are almost guaranteed to be part of a scam. Be wary of opportunities that require you to:

• Pay to apply or interview

• Pay for work-related materials

• Pay to receive training

In all circumstances, you should never send money to a recruiter. Stay away from companies who tell you to wire money or pay with non-reversible payment methods. 

Sketchy Emails or Phone Calls

Trust your gut when you receive emails and phone calls that leave you feeling confused. If these emails or calls are unexpected, unsolicited, riddled with spelling and formatting errors, it’s likely coming from a bad actor. 

Here are a few more warning signs if you need to convince yourself that something's off:

• The sender’s email address comes from a non-corporate or vetted address, it is likely coming from a fraudster. 

• The recruiter refuses to have an in-person or video call interview. If they do have an in-person or video interview, it is brief and skips important components of a typical interview for your industry (like behavioral or technical assessments). 

• The recruiter conveys a sense of urgency and a need to hurry the interview process along so they can hire you immediately. 

Additionally, if the mode of contact appears to come from a legit business--take a closer look. There may be slight details that are off, like the title or spelling of the company name, domain address, or recruiter name. These are all signs that you are being contacted by an imposter. 

An Opportunity That’s Too Good to be True

If the job in question promises you can work from home, make loads of money, or earn free vacations with little time, effort, or skill, it is probably fake and trying to take advantage of you.  

How to Protect Yourself From a Job Scam

Fortunately, there are several measures you can take to protect yourself from con artists. Here are the top actions you can take to defend yourself throughout your job hunt.

Research the Company

Do a background check on the company. Look up the company online and include keywords like “scam” or “complaint” in your search. 

A vetted company will have an online presence that extends beyond search results that yield titles with “scam” or “complaint” in the title. A search for a real company will also yield search results beyond job postings. If you ever search for a company and all you see in your search engine results are job postings, it is a scam.

Additionally, a real company will be listed in a reputable directory like the Better Business Bureau. A scam company can be listed in directories like these, granted often under titles or misspellings that resemble the authentic company. 

Guard Your Personally Identifiable Information 

Secure important logins associated with your job searches, bank accounts, social media, and e-commerce by enabling two-factor authorization. If you suspect your information has been compromised, change your passwords. 

Be cautious of sharing your personal information on social media. Avoid listing your birthday, social security number, phone number, or driver’s license on any of your profiles. Be wary of new social media contacts who ask you questions that seek to derive this information from you. 

Don’t Open Unexpected Emails

It’s likely a scammer trying to bait you. If you do open an unsolicited email, never click on a link without first hovering over it and inspecting its address. 

Report Suspicious Activity

Report fraudulent activity and behavior to your police department and the company that’s being impersonated. If you suspect you are being contacted by a fake company, file a complaint with the Federal Trade Commission.

Be Smart, Be Unscammable

 Unfortunately, predators are lurking in the job market. Trust your instincts and gut and follow this guide to protect yourself.