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CROMWELL, Conn. — In the first three months of 2023, Better Business Bureau (BBB) Scam Tracker received reported losses of nearly $840,000, up over 250% compared to last year. With a median loss of over $1,500 during that timeframe, job hunters tell BBB the financial impact is devastating.
Since BBB issued the 2021 study, Job Scams: BBB study finds job scams increased during the pandemic and warns job seekers to verify employment offers to avoid illegal jobs, identity theft, and fake checks, the blistering pace at which fraudsters ensnare the public in employment scams has increased each year, according to BBB data. In extreme cases, some individuals found themselves in a deep financial hole with little recourse.
Key Findings
· Early figures for 2023 show job scam reports nearly tripledcompared to the same period last year.
· $840 thousand in losses during the first three months of 2023,which is more than the first nine months of 2022.
· Median loss of over $1,500 during the first quarter of 2023. Some job seekers’ monetary losses totaled tens of thousands of dollars.
· Job fraud is the most common type of scam for those ages 18-34.
· Since 2020, over 700 Scam Tracker reports referenced Indeed, 288LinkedIn and 250 Telegram as their first point of contact with fraudsters.
· “Reshipping scams” where fraudsters trick consumers into buying and shipping expensive electronics appear to be one of the most common job scam types.
· 12,925 BBB Scam Tracker reports with $4.77 million in losses (2020-March 2023)
· 282,061 reports to the Federal Trade Commission’s Consumer Sentinel Network with $845.1 million in losses (2020-March 2023)
Reshipping scams
In these scams, fraudsters hire people to ship items, almost always outside the country. They may use excuses about different laws in their country or the difficulty in obtaining certain pieces of technology, like computers. They will convince their target to purchase high-priced goods on their credit cards before instructing them to send the items overseas. Scammers submit a fraudulent payment to their victim’s credit card, knowing it will bounce. Before it does, they instruct the “employee” to purchase more items, cranking up the debt owed once the bank claws back the false payments.
In another twist, some scammers may recruit their targets as the address to which they send stolen goods or money. The worker believes they are part of the logistics team for an international shipping business, but they are serving as so-called money mules.
Since January of 2022, Better Business Bureau Serving Connecticuthas received 85 reports of employment scams involving "companies" claiming to be located in Connecticut. The victims of these scams reside in 18 states. A majority claimed to be hired for logistics positions, many of which involved reshipping electronics and high-end designer goods. There have also been 77 reports to BBB Scam Tracker from Connecticut residents who said they were targeted by an employment scam, resulting in more than $90,000 in lost wages.
Our office has launched five separate investigations into the practice of recruiting for logistics positions in the last year. In each instance, the company did not appear to exist and the address reported for the business was either unoccupied or being used for something else.
The most recent example involved a "business" called Paige Logistics LLC AKA Paige Post, which claimed to be located in East Windsor. In less than two months' time, our office received nearly two dozen reports to BBB's Scam Tracker from people in a dozen states. Those targeted by this scam said they were approached to receive and send packages for a salary topping $3,000 a month. However, they reported that when payday arrived their dashboards were deactivated and their supervisors disappeared. A search of the address listed on the company's state paperwork shows farmland in the location it claimed to have corporate headquarters. Victims not only lost out on a month's-worth of salary and unknowingly shared person and banking information with an apparent scammer, but also lost valuable time they could have used to search for legitimate employment. Money mules can be prosecuted for their participation in scams, even if they claim to be unwitting victims.
"Three weeks into getting these package the cops came to my home saying that one of the packages was charged on a credit card that was stolen so that is under investigation. I'm cleared and I told the company Paige Post about this and not to send me any more packages," one New Jersey man reported to BBB's Scam Tracker.
BBB tips for job seekers:
· Research companies offering jobs at BBB.org.
· Find a number on the business’ website and call to confirm the job or offer is real.
· Check the email address to ensure that it is connected to the company and not a personal “gmail” or “yahoo” address.
· Be cautious providing personal information to unverified recruiters and online applications.
· Don’t pay for a job.
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