In recent years, there has been a major increase in the number of fake job postings circulating on job boards and social media. These sham job listings lure in unsuspecting job seekers by promising easy, high-paying work opportunities. Unfortunately, these fake job posts are often a front for fraudulent activities and scams. So why are there so many fake job postings out there today?
It’s Lucrative for Scammers
Fake job postings are on the rise simply because they are lucrative scams that work. For cybercriminals and scammers, creating and promoting sham job listings is a straightforward way to find vulnerable people and trick them into compromising personal information, bank account access, or even sending money directly. According to the Better Business Bureau, employment scams are now the riskiest and most widespread type of online fraud. Impersonating real employers to exploit job seekers’ needs generates huge profits for these con artists.
Low Risk of Getting Caught
Another reason fake job postings are so prevalent is that creating and sharing online job listings is easy and comes with minimal risk for the scammers. Services like Google Docs make it simple for anyone to quickly make a job application or description that looks professional. Scammers can then easily share fake listings on job sites, social media platforms, and other corners of the internet while maintaining anonymity. Even when reported, fake job posts can simply be taken down and re-posted elsewhere. With little chance of facing consequences, scammers have no incentive to stop creating sham listings that lure in job seekers.
Job Seekers are Vulnerable
During times of economic uncertainty and high unemployment, there is an abundantly larger pool of desperate job seekers who are more vulnerable to employment scams. Layoffs, hiring freezes, and reduced job openings due to recessions make it difficult for people to find work. Out-of-work individuals searching urgently for any income source become ideal targets for fake job postings promising quick cash. Scammers know that people who are anxious for employment may overlook red flags associated with dubious postings.
Lack of Regulation on Job Boards
Many popular job search sites and aggregators host third-party job postings with little oversight or screening. Unlike reputable employers who directly manage applications for their job openings, it’s easy for scammers to anonymously submit fake listings containing false company names, logos, and contact information. Job boards themselves often do no verification and allow these sketchy posts as long as payment is received. The lack of regulation and accountability on many digital job platforms enables fake job listings to proliferate.
Telltale Signs of a Fake Job Posting
While scammers are getting better at creating convincing fake job posts, there are still red flags job seekers should watch out for:
- Vague, nonspecific job descriptions lacking required qualifications
- Positions seeming too good to be true with high pay for simple work
- Interviews conducted only via chat, text, or email
- Requirements to provide personal information upfront
- Poor grammar, spelling, formatting, or design
- Requests for upfront payment for training or materials
Do thorough research on any employer before providing personal or banking information. Scour review sites and search the company’s name along with terms like “scam” or “fake” to uncover any suspicious activity. Refrain from clicking on links in suspicious emails about job opportunities.
How to Avoid Fake Job Scams
Here are some tips to avoid getting caught in a fake job scam:
- Use trusted job search platforms like reputable company websites, LinkedIn, and ZipRecruiter
- Watch for grammatical errors, inconsistencies, or anything suspicious
- Never provide personal details like SSN over email or text
- Research the company name, address, and contact info to confirm legitimacy
- Look up reviews and complaints against any employer
- Refuse any request to pay for “training” or “materials”
- Be wary of positions requiring depositing checks or reshipping packages
- Trust your gut – if something seems questionable, it probably is
What to Do if You Encounter a Fake Job Scam
If you applied for a job that you now believe is fake, take the following steps:
- Cease all contact with the “employer” immediately
- Report the job listing to the site it is hosted on
- File a complaint with the Federal Trade Commission
- Notify your bank if you shared any account information
- Place a fraud alert and monitor your credit report
Although fake job scams may seem sophisticated, watching for warning signs, trusting your intuition, and cutting off contact at the first sign of a scam can help protect you from becoming a victim.
The Increase in Fake Job Listings
Fake job postings have absolutely exploded in recent years. According to the 2021 Employment Scam Report from the Better Business Bureau, over the last 3 years:
- Employment scams surged by 26%
- Median dollar loss per scam increased by 33%
- Total money lost by victims rose by 42%
In 2020 alone, employment scams accounted for over $2 billion in losses reported to the Federal Trade Commission. With the COVID-19 pandemic straining the job market, opportunistic scammers posted fake listings offering remote work, and found huge success. The rise of social media has also enabled fake job posts to reach wider audiences than ever before.
Most Targeted Industries
While fake job postings can appear for nearly any type of job, some common industries scammers target include:
- Customer Service
- Administrative Assistants
- Information Technology
- Delivery Drivers
- Warehouse Workers
- Manufacturing
- Healthcare
Roles that pay above-average while requiring less formal education tend to attract more scam listings. Remote, work-from-home, and freelance positions are also increasingly common fake opportunities as job seekers desire flexibility.
Where Fake Job Listings Originate
Top sources for fraudulent job postings include:
- 51% from Online Job Boards
- 26% from Social Media
- 11% from Email
- 6% from Text Message
- 4% from Website Ads
- 2% from Phone Call
With the ubiquity of the internet and digital recruitment, online job boards have become the number one outlet for scammers. However, social media platforms like Facebook, Instagram and LinkedIn are quickly gaining ground.
Who is Behind Fake Job Listings?
Fake job postings originate from a range of cybercriminals seeking to profit off of desperate job seekers. Common creators of fraudulent job listings include:
- Employment Scam Rings – Sophisticated international crime networks specifically engaged in employment fraud.
- Individual Scammers – Solo con artists looking to make quick money via fake job scams.
- Identity Thieves – Scammers mainly seeking to harvest people’s PII to open fraudulent accounts.
- Money Mule Recruiters – Criminals hiring people to launder stolen money and goods.
- Human Traffickers – Seeking victims through false employment offers.
Fake job posts cast an alarmingly wide net that attracts all manner of cybercriminals looking to exploit job seekers’ needs and vulnerabilities. Individual victims may not know who specifically is behind any given scam job listing.
Most Common Fake Job Scams
While approaches vary, some of the most ubiquitous fake job scams include:
Employment Identity Theft
Scammers impersonate real employers to collect personal information for identity theft. Fake applications harvesting Social Security numbers, birth dates, etc. facilitate tax fraud, credit card fraud, and account takeovers.
Fake Check Schemes
Offers to deposit funds or pay for “training” via check. The victim sends money before the check bounces, but the deposited “paycheck” vanishes – leaving them owing money!
Reshipping Schemes
Hiring people to repackage & forward stolen goods or contraband. Unwitting mules don’t realize the job supports theft, drug trafficking, etc.
Mystery Shopping
Scammers pose as market researchers hiring “mystery shoppers” to evaluate businesses. Victims are sent money orders and told to wire portions after “depositing their pay” – only for the MOs to bounce.
Upfront Payment Cons
Fake employers ask candidates to pay for training, sales kits, or software to start employment. Of course, the job doesn’t exist – it’s just a ploy to get people’s money.
Bait-and-Switch Schemes
Applicants are hired for a specific role, then pressured into taking a different suspicious position, like transferring money or reshipping goods.
Romance Scams
Fraudsters start online relationships, build trust, and eventually convince victims to provide money or carry out financial crimes in the name of love. Fake jobs are commonly used to dupe dating app and social media users.
How Criminals Use Fake Job Postings
Why exactly do scammers use fake job listings? What do they gain out of exploiting people in need of work? Here are some of the criminal objectives and motivations behind fake job scams:
- Steal Personal Information – Name, DOB, SSN, address, etc. to commit identity theft
- Steal Login Credentials – Usernames, passwords, banking PINs to break into accounts
- Credit Card Fraud – Bill stolen cards or take out new lines of credit
- Wire Transfer Theft – Dupe victims into wiring funds from their real bank accounts
- Money Mule Recruitment – Turn people into financial middlemen to hide money trails
- Recruit Drug Mules – Smuggle illicit items across borders
- Human Trafficking – Kidnap people or force them into sex work
- Circumvent Screening – Insert spies or thieves into companies
- Digital Currency Theft – Steal cryptocurrency wallets and assets
While reward motivates scammers, many fake job posts support intricate criminal operations like identity theft rings, money laundering networks, drug trafficking – even terrorism. Job seekers must stay vigilant.
Criminal Penalties for Fake Job Scams
Creating or promoting fake job postings as part of an illegal scam or fraudulent scheme can incur serious criminal penalties:
- Wire fraud – Up to 20 years in prison
- Mail fraud – Up to 20 years in prison
- Employment scam – Up to 5 years in prison
- Identity theft – Up to 15 years in prison
- Financial fraud – Up to 25 years in prison
Despite the risks, scam artists still find ways to evade law enforcement – often by operating abroad. But if caught and convicted, they face years if not decades behind bars in addition to massive fines and asset seizure.
Reporting Fake Job Scams
If you discover a suspicious job posting you believe is a scam, you should report it to prevent others from being defrauded. Here are the best places to report fake job listings and employment scams:
FTC – ReportFraud.ftc.gov
The FTC is the top government agency for reporting any sort of consumer scam or financial fraud operating in the U.S. File detailed complaints about fake jobs on their website.
State Attorney General
Each state has an Attorney General’s office dedicated to prosecuting scams violating local laws. Look up your state AG online to file complaints.
BBB – BBB.org/ScamTracker
The Better Business Bureau provides resources on the latest scams and accepts scam reports through their website. Reports help warn other consumers.
Fraud.org
This nonprofit allows you to directly report employment scams and share information to spread awareness of job fraud tactics.
Company Involved
If fake postings are falsely representing a legitimate company, you should contact that company to have the fraudulent listings removed.
Job Site Hosting Listing
Job search platforms should be notified of any confirmed fraudulent listings to have them taken down immediately.
Social Media Sites
Social networks like Facebook and Twitter provide tools for reporting fake accounts, phishing links, and other scams.
Preventing Fake Job Scams
Fake job postings may be ubiquitous today, but there are still ways individuals and platforms can help curb employment scams:
- Closely vet job listings and research employers
- Refuse to pay any fees for hiring or training
- Never provide personal details over unverified channels
- Use trusted jobs sites with screening processes
- Block sketchy contacts immediately
- Report any suspected frauds you encounter
- Share scam awareness information online
- Educate vulnerable groups about risks
- Advocate for laws regulating job ads
- Enable flagging of suspicious posts
- Perform identity verification
- Have dedicated scam investigation teams
With vigilance and cooperation from job seekers, employers, law enforcement, and the community, the rampant scourge of fake job listings can be reduced.
The Future of Fake Job Scams
As the numbers reveal, fake job postings are only growing each year in frequency and severity. So what does the future hold in store for employment scams? Here are some predictions:
- Scams will become harder to detect as AI improves
- Targeting of social media users will intensify
- Youth entering workforce more vulnerable to fakes
- Remote, freelance, and gig roles to see more scams
- Scarce jobs in economic downturns feed fraud
- Cryptocurrency theft increasingly tied to job cons
- International crime rings get involved long-term
All trends point to employment scams growing in sophistication and reach. But increased public awareness and vigilance can help control the epidemic of fake job listings trapping the desperate and vulnerable.
Conclusion
Fake job postings and employment scams are an immense threat lurking within the labor market. Scammers are drawn to fabricating job listings by huge profits and minimal risk – allowing them to ruthlessly exploit people in dire need of work. However, by learning to recognize red flags, researching postings thoroughly, sharing knowledge of these scams, and reporting fakes immediately, individuals and platforms can start combating this menace. With enough vigilance and cooperation, job seekers can avoid getting snared by the epidemic of fraudulent listings polluting the internet and reclaim faith in finding meaningful employment.