Job Fraud on the RiseJob Fraud on the Rise In 2023, job fraud is a growing concern, with cases expected to surge by 118% compared to 2022. Scammers impersonate recruiters or post fictitious job openings to obtain sensitive information from job seekers. Artificial Intelligence and Remote Work Fuel the Problem Advancements in AI allow scammers to generate credible-seeming messages, while remote work has increased comfort with digital-only transactions. These factors make it easier for fraudsters to target job seekers. Scams to Beware Of Scammers may attempt to extort money for on-the-job equipment or training, or request personal information such as driver’s licenses or Social Security numbers. Never provide such details before receiving a legitimate job offer. Protecting Yourself * Verify the legitimacy of job postings on reputable platforms. * Contact potential employers directly using official contact information. * Be cautious about digital-only interactions and suspicious requests for personal information. * Recognize red flags such as over-the-top job offers and requests for financial assistance. * Report any suspected scams to the FTC or relevant authorities. Conclusion Job fraud is a dangerous threat, but by remaining vigilant and following these precautions, job seekers can protect themselves from falling victim to these schemes.
- Job fraud is an emerging threat. According to the Identity Theft Resource Center, job fraud cases will increase by 118% in 2023 compared to 2022.
- Scammers may pose as recruiters or post fake job openings to obtain confidential personal and financial information from job seekers.
- According to experts, improvements in artificial intelligence and the rise of remote work are major contributors to the rise in job application scams.
According to experts, scams surged last year as criminals used artificial intelligence to steal money and personal information from unsuspecting job seekers.
According to a recent report from the Identity Theft Resource Center, consumer reports of job application scams will increase 118% in 2023 compared to the previous year.
Thieves usually pose as recruiters and post fake job advertisements to lure applicants, then steal valuable information during the interview.
They often post these fake job openings on reputable websites like LinkedIn and other job search platforms, according to ITRC, making it difficult to separate truth from fiction.
The typical victim loses about $2,000
A major danger is the release of financial data or sensitive personal information (such as a social security number). Criminals can then use this data to steal a job seeker’s identity.
According to the Federal Trade Commission, consumers reported losing $367 million to scams related to jobs and business opportunities in 2022, a 76% increase from the previous year.
According to the FTC, the average victim lost as much as $2,000.
Job fraud isn’t the most common type of fraud: It will account for just 9% of all identity fraud in 2023, second only to Google Voice fraud, which totaled 60%, according to the ITRC. (Google Voice fraud tricks people into sharing a Google verification code, which scammers can use for nefarious purposes. They often target people on Craigslist and Facebook Marketplace.)
However, according to Eva Velasquez, president and CEO of ITRC, job application scams are an “emerging” threat.
“Job fraud has been around since jobs have existed,” Velasquez said. “(But) it’s going to continue to grow because of a number of external factors that are occurring.”
AI and remote work fuel growth in workplace scams
Advances in AI are one such factor, allowing scammers to generate job and recruitment messages that look and feel more trustworthy, experts say.
According to the ITRC report, AI tools help refine the pitch to make it sound more credible and compensate for cultural and grammatical differences in language use.
Additionally, the rise of remote work during the pandemic has made employees and job seekers more comfortable with digital-only transactions, Velasquez said.
According to Velasquez, job seekers may never see a physical person during a fake application or hiring process: they may only communicate with a so-called recruiter via text message or WhatsApp, which amounts to a “big red flag.”
Recent college graduates, immigrants or other people new to the U.S. job market may think this kind of digital hiring is normal, especially for fully remote jobs, she said. But hiring generally doesn’t work this way, she added.
How Job Scams Can Scam You
According to the FTC, scammers try to “ask you for money” during the application process.
They may bill you for advance payment for on-the-job equipment (such as a computer) or job training. They promise to reimburse you but don’t, according to the federal agency.
Scammers may also ask for your personal information, such as your driver’s license, Social Security number or bank account information, to fill out “employment forms,” the FTC said.
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“Scammers promise you a great job, 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.
Job seekers shouldn’t expect to be asked to provide personal information before they’ve received and accepted a job offer, Velasquez says. (While this is a good way to verify the legitimacy of a job, it doesn’t guarantee safety in all cases, Velasquez says.)
How to Protect Yourself from Job Scams
Ultimately, according to the FTC, there is no single way to detect job posting scams.
According to Velasquez and the FTC, here’s what you should know and how to better protect yourself:
- Don’t have a false sense of security on well-known job vacancy platforms.
- Independently verify that the company exists and is hiring. Don’t accept a job before doing your own research.
- Be careful if you haven’t contacted a potential employer or recruiter. Instead, contact the company directly using contact information that you know is legitimate.
- During the application process, only a limited amount of personal information is typically requested: name, telephone number, work and education history, and possibly email and home addresses, Velasquez said.
- Digital-only interactions are a red flag, but phone calls are no guarantee of safety either.
- Honest employers don’t send you a check to buy supplies or anything and then ask you to send the leftover money back. This is a fake check scam.
- Be wary of anything that sounds too good to be true. For example, a 100% remote job posting that requires few skills and a huge salary “isn’t realistic,” Velasquez says.
