Look out for job scams this holiday season! You may want to do some extra research before taking on that side-gig you’ve been eyeing. This consumer protection month, Better Business Bureau and Stop Fraud Colorado—developed by the consumer protection section of the state’s Attorney General’s Office—are teaming up to warn Coloradoans about employment scams, which are likely to target those looking to earn some extra holiday cash.
Employment scams are fake job opportunities that steal victims’ money, time, and financial information. In some cases, victims even unwittingly lend a hand to criminals through the work they provide.
According to data collected through BBB’s Scam Tracker program, last year, employment scams posed the greatest risk to North American consumers among roughly 30 different fraud categories, with a median loss of over $1,200 per victim.
In some cases, these scams even target students by spoofing the email addresses of their professors and student services departments.
Here’s how some of the more common employment scams work:
Fake check-style employment scams:
When you cash a check and see your bank account’s balance increase, that means the check has officially cleared and the money’s all yours—right? Wrong! The check could still bounce, and if it does, those funds are pulled straight back out of your account. Through fake check-style employment scams, criminals manipulate victims into sending away money they think is sitting in their bank accounts.
Fake check-style job scams use phony job opportunities to do this, with fraudsters sending their new hires counterfeit checks that are to cover initial job-related expenses. Common examples include nannying positions that require strollers, and college students being paid to wrap their cars with advertisements. Whatever the premise, scammers instruct victims to immediately withdraw the balance of these checks and send funds to specific venders or service providers. However, the people receiving those payments are in on the scam. When the counterfeit checks eventually bounce, victims are left on the hook for the costs.
Secret shopper scams work similarly but use a different guise to get victims to send away money. In a secret shopper scam, victims believe they have been hired to test-purchase store items and rate their shopping experiences. (This type of job actually exists, but many opportunities you’ll find are fraudulent.) Scammers send these shoppers fake checks and tell them their first assignment is to “test buy” prepaid gift cards. The scammers then collect the gift card information, leaving victims responsible for their cost once the fraudulent checks bounce.
Re-shipping scams:
Re-shipping scams are fraudulent job opportunities advertised as well-paying, part-time work from home positions. The job duties are usually simple: receive, inspect, and re-ship packages for “quality control” (or something along those lines). What victims don’t often realize is that the goods they are receiving and shipping off have actually been purchased by criminals using stolen financial information, and by re-shipping these packages, they actually unknowingly commit a crime. Additionally, in most cases, they are never paid for their work.
BBB offers the following tips for dealing with employment scams:
Some positions are more likely to be scams. Always be wary of work-from-home or secret shopper positions, or any job with a generic title such as caregiver, administrative assistant, or customer service rep. Positions that don’t require special training or licensing appeal to a wide range of applicants. Scammers know this and use these otherwise legitimate titles in their fake ads. If the job posting is for a well-known brand, check the real company’s job page to see if the position is posted there. Look online; if the job comes up in other cities with the exact same post, it’s likely a scam.
Different procedures should raise your suspicion. Watch out for on-the-spot job offers. You may be an excellent candidate for the job, but beware of offers made without an interview. A real company will want to talk to a candidate before hiring. Don’t fall for an overpayment scam. No legitimate job would ever overpay an employee and ask for money to be wired elsewhere. This is a common trick used by scammers. And be cautious sharing personal information or any kind of pre-payment. Be careful if a company promises you great opportunities or big income as long as you pay for coaching, training, certifications or directories.
Government agencies post all jobs publicly and freely. The U.S. and Canadian federal governments and the U.S. Postal Service/Canada Postal Service never charge for information about jobs or applications for jobs. Be wary of any offer to give you special access or guarantee you a job for a fee – if you are paying for the promise of a job, it’s probably a scam.
Get all details and contracts in writing. A legitimate recruiter will provide you with a complete contract for their services with cost, what you get, who pays (you or the employer), and what happens if you do not find a job.
Consumers who believe they have encountered an employment scam are encouraged to file a report through BBB’s Scam Tracker and with the Colorado Office of the Attorney General.
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Article courtesy of BBB!