HEADLINES

CT BBB Caution About Job Scams

 

   
   
CROMWELL, Conn. — Employment scams are on the rise in the turbulent job market created by the COVID-19 pandemic, a new Better Business Bureau® (BBB®) study finds. BBB warns job seekers to verify employment offers to avoid illegal jobs, identity theft, and fake checks to which millions are exposed annually.
 
The in-depth investigative study -- Job Scams: BBB study finds job scams increased during pandemic, warns job seekers to verify employment offers to avoid illegal jobs, identity theft and fake checks -- details the many forms employment fraud takes and the scams that often result. Read the full study here.
 
Job scams have been a problem for years. In 2020, BBB estimated 14 million victims with $2 billion in direct losses related to job scams. Last year, the 2020 BBB Employment Scams Report by BBB Institute for Marketplace Trust found job scams to be the riskiest of all the scams they tracked in 2018 and 2019. However, BBB’s study finds that the problem worsened in 2020. Losses reported to the FBI’s Internet Crime Complaint Center (IC3) about employment scams were up 27% between 2018 and 2020, while complaints to the Canadian Anti-Fraud Centre (CAFC) nearly doubled in 2020.
        
BBB Institute’s 2020 report on job scams found that this fraud most commonly victimized people ages 25-34, with women filing 67% of complaints about this fraud. The median financial loss reported by these victims was $1,000; in addition, they often reported a loss of their time, as 32% were never paid for the work they did for an “employer” that turned out to be fraudulent.
        
Identity theft is a common outcome of job scams, as scammers often steal job seekers’ personal information to open bank accounts to further their fraud. BBB found 34% of victims provided their driver’s license number and 25% provided their Social Security or Social Insurance number.
         
Fake checks also frequently accompany job scams, and they continue to grow. This new BBB study finds that 36% of job scam complaints to BBB involved a fake check, with fake check complaints to the Federal Trade Commission (FTC) increasing by 65% between 2015 and 2020. In the two years since BBB issued an investigative study on fake check fraud, losses absorbed by banks themselves due to fake checks went up 40% to reach $1.3 billion. Common fraudulent job offers involving fake checks include mystery shopping or secret shopper jobs, car wrap jobs, nanny or caregiver jobs, and small business jobs such as photography or painting houses.
 
Employment scam victims frequently become unwitting accomplices in other fraud, used as money mules, to mail fake checks, or to participate in reshipping scams, which represent 65% of the scam job offers reported to BBB Scam Tracker. Scammers “hire” victims from job boards, Facebook, or Craigslist, offering to pay them as much as $2,500 to receive and then send on packages. These fraudsters often use stolen credit card numbers to order laptops, cellphones, and high-end goods and have them sent to reshipping victims, instructing them to repackage the goods and provide shipping labels to send the packages to a new address, often in Russia. The accomplices who were hired for this fraudulent type of work are never paid, and their identities may be used to open bank accounts.
 
Tips to avoid job scams:
  • Research the job offer. Call or go directly to the actual company's website for contact information to verify the job posting.
  • Do an internet search with the name of the employer and the word “scam” to see if there are reports involving job scams.
  • Examine the email address of those offering jobs to see if it matches the protocols used by an actual company. Be alert to gmail business email addresses. 
  • Consider creating a separate email address when posting a resume on job boards or applying for jobs. This can help detect “offers” from scam employers you did not contact.
  • If you’re paying for the promise of a job, it’s most likely a scam.
  • Be very wary of mystery shopping, secret shopper, or package reshipment positions. 
  • Don’t fall for a fake check scam. BBB is not aware of any legitimate job offers that send checks to applicants and ask them to send money to a third party.
  • Be cautious in providing personal information such as your full address, birth date, and financial information in your resume or to unverified recruiters and online applications.
  • Be wary of vague job descriptions.
It is important that victims of job scams report them to:
About BBB
BBB is a nonprofit, business-supported organization that sets and upholds high standards for fair and honest business behavior. BBB services to consumers are free. BBB provides objective advice, BBB Business Profiles on more than 5.3 million companies, 11,000 charity reviewsdispute resolution servicesalerts and educational information on topics affecting marketplace trust. Visit BBB.org for more information.

 

 

 

 

Subscribe

Follow Fairfield HamletHub