While reported job scam losses have shown a slight decline this year, the threat remains significant with Scamwatch reporting $6.4 million in losses to employment scams.
According to COBA’s Financial Crimes and Cyber Resilience team, scammers often prey on people’s desire for employment and financial security.
“Scammers are cunning, exploiting people’s eagerness for employment and financial stability. Be vigilant, especially with offers that seem too good to be true, and always thoroughly research a company before disclosing any personal information,” COBA Chief of Financial Crimes and Cyber Resilience Leanne Vale said.
Here, the COBA Financial Crimes and Cyber Resilience team share their top tips on how to spot and avoid employment scams.
What an employment scam can look like
Employment scams have become increasingly sophisticated, taking on various forms that can deceive even the most cautious individuals.
Scammers post fake job advertisements on online job boards, classified ad websites, or social media platforms, offering positions with attractive salaries, benefits, or work-from home opportunities. The jobs may involve tasks such as data entry, envelope stuffing, or processing payments using your own bank account, but they are often non-existent or involve illegal activities such as money laundering or reshipping scams.
Some scammers pose as employers or recruiters and request payment of upfront fees for job application processing, background checks, training materials, or other purported expenses. Once the victim pays the fees, the scammer disappears, and there is no job or employment opportunity.
Scammers also use phishing emails, fake websites, or online forms to collect sensitive personal information from job seekers under the guise of job applications, employment verification, or background checks. The stolen information can be used for identity theft, financial fraud, or further phishing attacks.
How to spot an employment scam
While a potential job offer can be enticing, it’s crucial to remain alert. If you encounter any of the following warning signs, exercise caution:
- Unsolicited job offers received via email, phone, or social media from unknown or unverified sources.
- Prospective employer or recruiter wants payment for upfront fees, training costs, or expenses as a condition of employment.
- Job postings, emails, and correspondence has poor grammar, spelling errors, or unprofessional communication.
- A job offer is received without a formal interview process, or any assessment of the candidate’s qualifications and experience.
- Job postings are vague or have generic job descriptions, unrealistic salaries, or promises for quick and easy money.
- A job simply involves receiving money into your account and moving it out.
How to protect yourself
Protecting yourself from job and employment scams requires vigilance and a proactive approach.
Research prospective employers by checking their website, looking at online reviews, and verifying their contact information. Be cautious of any employers without an online presence, online forms as the only communication option, or negative reviews.
Verify job listings by comparing them to reputable job boards, company websites, or official recruitment channels. If a job offer sounds too good to be true, it probably is!
Don’t make any upfront payments. Legitimate employers generally cover those costs themselves.
Avoid sharing sensitive personal information, including copies of identification documents and bank details, with unknown or unverified employers.
What to do you if spot a job and employment scam
Even if you’ve managed to avoid losing money to an employment scam, reporting it is still crucial. By sharing your story, you contribute to protecting others and stopping these criminals.
Report the scam to National Anti-Scam Centre – Scamwatch.
If you have lost money as part of the scam, immediately report the transaction(s) to your bank or financial institution and complete a report through ReportCyber.Customer-owned banks are dedicated to safeguarding their customers from scams and fraud. In November, 55 mutual banks and credit unions demonstrated this commitment by joining forces to launch the Scam-Safe Accord. This industry-wide initiative represents a united front against scammers and reinforces the banking sector’s determination to strengthen consumer protection. Find out more about the Scam-Safe Accord here.