Scam artists are well aware that finding a job can be difficult. To trick people who're looking for a job, scammers pitch sketchy, get-rich-quick, work-at-home schemes, typically online. But they’re just looking for ways to get your money or your private information, like your Social Security number.
While it’s impossible to keep up with every new type of job scam, this article covers some of the most popular ones out there so you can avoid becoming a victim.
In this kind of scam, you receive an email about a potential job, and you go through the hiring process online or over the phone—but you never meet the employer. The employer offers you the position and asks for your bank account information so it can directly deposit your pay. The employer then asks you to transfer money from your bank account to a third party. The company explains that they need you to make the transfer because some staff members are having cash flow problems. This arrangement seems weird, but you agree because the employer shows you that they’ve already transferred money, perhaps thousands of dollars, into your bank account.
So, you transfer money from your bank to an account overseas. But the original transfer to your account never actually happened—the transaction information the employer showed you was falsified—and you never see your money again. Also, the scammer now has your bank account information, as well as other personal information you’ve divulged as part of the “hiring process,” and could use it to steal your identity. (If someone gets your personal information and uses it to steal your identity, see Recovery Steps If You're a Victim of Identity Theft.)
Many people enjoy the ease of having their paychecks direct deposited by their employer. But an unknown employer, especially from the Internet, can use an offer of direct deposit as a ruse for gaining access to bank accounts. If in doubt, ask to be paid by traditional paper checks initially and then, and think about direct deposit when you're satisfied that the employer is genuine.
If you've given your bank account information to a scammer, inform your financial institution immediately. The bank might be able to trace the location of the account where the funds were received and can advise you of whether steps are necessary to protect the integrity of your accounts. (To learn more about online scams that try to get your personal information, see Email Scams and Frauds.)
With this scam, you apply for a job online and the “employer” says you got the job, but there’s a catch: You need to pay a fee for certification, training materials, or their expenses. After you pay, the job doesn’t materialize. Any condition to pay money upfront for training, equipment, or supplies should be treated with suspicion.
Some companies hire people to conduct mystery shopping to get candid consumer opinions about the quality of their products and services. Mystery shopping might seem to be the perfect way to enjoy free meals out, free samples, and free products. Unfortunately, some people who think they’re signing on with a legitimate mystery shopper business have found themselves scammed.
Here’s how a typical mystery shopper scam works. You answer an online advertisement or email offer for mystery shoppers. After doing your assigned mystery shopping, you receive a substantial check as payment. You’re then instructed to forward a portion of that payment from your bank account to someone you didn't know. Unfortunately, the check you deposit is bogus and you never the money you transferred again.
You should be extremely suspicious about any scheme where you're asked to send funds to a third party. If you're actually working for a mystery shopper business, then that business should be paying you, not vice versa. Don’t be fooled if you get a check or other payment, because that payment might not be legitimate.
If anything about a mystery shopping arrangement seems unusual, exercise caution. A good source of information as to the legitimacy of a mystery shopping offer is the Mystery Shopping Providers Association. The Better Business Bureau can also be helpful in figuring out whether a mystery shopping business and related job offer are legitimate.
The odds of getting your money back if you’ve been defrauded in a job scam aren’t good. It’s likely you’ll have difficulty identifying and locating the wrongdoer. And, if the scammers can't be identified, they can't be charged with a crime or served a civil complaint. An attorney can give you advice on whether it would be worthwhile to pursue legal action against a scammer in your circumstances. If you do manage to identify and locate the scammer, a number of laws might provide you with a remedy, like your state’s Consumer Fraud Act or Deceptive Business Practices Act. Also, you may file a complaint with the Federal Trade Commission (FTC), and report the scam to the FBI’s Internet Crime Complaint Center and your state Attorney General. Reporting the scheme might prevent other people from becoming victims.
Obviously, it's better to avoid getting scammed in the first place. A consumer protection attorney can offer guidance and suggestions if you get a questionable job offer, as well as offer insight into the applicability of certain employment laws and potential for recourse if problems arise. (Read more about how to avoid online scams.)
