Employment scammers try to trick job seekers using the same methods that real employers do – with job ads online, in newspapers and even on TV or radio. They may even reach out to individuals directly via email, phone or social media. These scammers dangle the carrot of employment, but they actually want to get their hands on your money or personal information.

Employment scams are a growing concern, as they are among the most commonly reported cybercrimes, and last yearsaw an 118% increase according to the Identity Theft Resource Center. 

Key Takeaways 

  • Employment scams are fake job offers designed to steal your personal information or money. 
  • Scammers often use online ads, fake job interviews, or unsolicited emails to lure victims. 
  • Warning signs include immediate job offers, payment requests, vague job descriptions, or unprofessional communication. 
  • To help avoid scams, verify employers, avoid sharing sensitive data, and never pay upfront fees. 

What Is an Employment Scam? 

Employment scams are fraudulent job offers or recruitment efforts designed to deceive individuals and steal their money or personal information. Scammers often mimic legitimate companies and use enticing job opportunities to lure victims. 

These scams take many forms, such as: 

  • Online job ads that seem too good to be true. 
  • Unsolicited emails or messages claiming to offer employment. 
  • Fake job interviews conducted online or in person. 
  • Job offers that bypass standard hiring procedures, like skipping an interview altogether. 

The Impact of Employment Scams on Victims 

Employment scams can have serious consequences, including: 

  • Financial Loss: Victims may be tricked into paying upfront fees for applications, training materials, or equipment. In some cases, scammers steal bank details or other sensitive information, leading to further financial fraud. 
  • Emotional and Psychological Toll: Falling victim to a scam can leave individuals feeling deceived, embarrassed, and violated. This emotional strain can harm self-confidence and impact future career prospects. 
  • Damage to Personal Reputation: Scammers who gain access to personal information may exploit it to defraud others or set up additional scams, tarnishing the victim’s reputation in the process. 

 7 Job Scam Warning Signs to Look Out For

Knowing common warning signs can help you identify and avoid employment scams. Here are seven red flags to be aware of: 

1. The Employer or Recruiter Initiates First Contact

One warning sign that the job may be fake is if the recruiter or employer reaches out directly to you unsolicited. This isn’t an automatic sign of a job scam – recruiters can, and do, reach out directly to qualified candidates to fill real positions – it’s also a tactic of job scammers.

If you receive communications about a job you didn’t apply to, make sure to do your homework and verify that the employer and recruiter is legitimate before you move forward.

2. You Receive an Immediate Job Offer

Receiving an immediate job offer before going through an official hiring process is a huge red flag. Just about every legitimate employer at least needs to review your qualifications and have you meet with a hiring manager. If you receive an immediate job offer without having to do anything, it’s probably a scam.

3. The Employer Requests Payment

Be wary of any company or recruiter that requests payment from you for an application fee, training, supplies or other expenses. Job seekers should be prepared to pay for normal expenses like traveling to job interviews or professional clothes, but you should never have to pay a fee to apply for or accept a job.

4. The Offer Sounds Too Good to Be True

Employers offering pie-in-the-sky promises are likely scammers. Any employer that offers a salary that seems extremely high for the job, offers an unusually flexible schedule, promises quick wealth or claims you can make a lot of money without working too hard is probably lying.

5. The Communications are Unprofessional

If you see grammar, syntax or spelling mistakes in the job offer or emails with the employer, it could be the sign of a scammer. This isn’t an automatic disqualifier – not every industry requires impeccable grammar – but it might be worth researching the employer to ensure they’re legitimate.

6. Basic Information is Missing

Is the listing fuzzy on the actual duties of the job, or the candidate qualifications? Can you find basic information about the employer on a professional website, such as their history, location, contact information and other details? If not, think about moving on.

7. The Employer Requests Personal Information

When you start working for a new employer, you have to supply them some personal information like your Social Security number (SSN) for tax purposes and bank account information for direct deposit. But this information is only needed after you get hired. If a new recruiter or employer asks for personal information beyond your name, location and contact info before you get hired, this could be a scam.

How to Avoid an Employment Scam

Before you accept a job offer or respond to a recruiter inquiry, take these steps to avoid employment scams:

  • Research the employer. Search the name of the organization and find their official website. Look for contact info, address and other information that establishes legitimacy. If you’re suspicious, search the name of the employer or recruiter along with the words “scam” or “complaint”.
  • Don’t pay anything. Legitimate employers do not ask you for money during the hiring process.
  • Don’t share personal information. While legitimate employers want basic info like your name and how to reach you, they shouldn’t need your SSN, date of birth, bank account information and other personally identifiable information.
  • Don’t respond to suspicious jobs. If the job sounds too good to be true, you spot lots of errors and mistakes or you can’t verify information about the employer, don’t respond to the job listing or communication.
  • Report scams. If you see a scam or become a victim, report it to the FTC and your state’s attorney general’s office.

How IdentityIQ Can Help 

IdentityIQ provides tools and services to help protect you from the fallout of employment scams. This added layer of protection helps ensure your personal and financial data are protected — even in the face of job scams. These tools include: 

  • Credit Monitoring: IdentityIQ monitors your credit 24/7 and sends real-time alerts for significant changes and possible suspicious activity, such as new accounts being opened or unauthorized inquiries. This enables you to take swift action against potential threats. 
  • Identity Restoration: IdentityIQ has a dedicated team of specialists to assist with comprehensive identity restoration services. We help you in recovering your identity and mitigating the financial impact of online fraud. Additionally, IdentityIQ provides identity theft insurance of up to $1 million, underwritten by AIG, to cover related expenses, such as legal fees and lost wages.  
  • Proactive Protection Features: IdentityIQ scans the dark web and other sources for your personal information, alerting you if your data is found in places online where it could be sold or misused. IdentityIQ also helps prevent misuse of your information by offering resources to secure your accounts, such as VPN and antivirus tools through Bitdefender® Total Security. 

Employment Scam FAQs 

Why do people post fake job listings? 

Scammers use fake job listings to steal personal information, money, or both by preying on job seekers through deceptive opportunities. 

How do you know if a job offer is legit? 

Verify the employer’s contact details, research their website, and check reviews for legitimacy. Look out for red flags like payment requests or unrealistic promises. 

What are the top employment scams? 

Common employment scams include remote job scams, reshipping scams, mystery shopper offers, and phishing emails seeking personal information or upfront payments. 

How to verify a job offer? 

Contact the company directly, review their official website, and search the recruiter’s name and email for authenticity. 

How common are employment scams? 

Employment scams are rising, surging by 118% last year compared to 2022. The average job scam cost victims $2,000. 

Bottom Line 

Employment scams can lead to financial loss, emotional distress, and identity theft. By staying vigilant and recognizing the warning signs, you can help avoid these scams. 

For added protection, IdentityIQ offers important tools such as credit monitoring, identity restoration, and real-time alerts to help safeguard your information and financial well-being. Don’t wait — start protecting yourself today with IdentityIQ.