Introduction to Job Offer Scam: The Dorothy Dickerson Story
Dorothy Dickerson, a 59-year-old mother from Dallas, fell victim to job offer scam twice, losing over $1,500. Despite her intelligence, she felt embarrassed and ashamed for being conned. After filing for bankruptcy, she turned to online job websites and was thrilled when two companies responded to her applications. They conducted interviews online and even sent offer letters on official-looking letterheads. However, the fake employers required her to purchase expensive equipment using checks that later turned out to be fraudulent. They instructed her to buy gift cards and send photos, draining the cards before the bank flagged the checks as fake, leaving her in financial trouble. Reflecting on the ordeal, Dickerson felt sick to her stomach.
Dorothy is not alone in her experience. According to the Federal Trade Commission, there were approximately 105,000 fake job scams in 2023, making it one of the fastest-growing types of fraud as Americans grapple with an uncertain job market. Over the past five years, these scams have increased more than fivefold. The FBI reported 15,000 victims of such scams, with losses exceeding $52 million. Many more victims likely never report their experiences, feeling too embarrassed to come forward.
Role of AI in Job Offer scams:
Artificial intelligence has made fake job postings even easier for fraudsters to create, and those who recently graduated or have been laid off are vulnerable to falling victim. “While there have been many positive effects to the rise of AI, one of the negatives is the power to more easily scam potential employees on a larger scale than ever before,” said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
“The methods and delivery of these messages are more difficult to spot inconsistencies in, even to individuals who would label themselves as being more tech-savvy,” Beene said. “Unfortunately, the allure of having a potential employer heavily interested in hiring you can blind people to the deception going on behind the messaging.”
After victims click to fill out a job application, they are often taken to fake pages, which ask for their financial information and then rob them of hundreds or thousands of dollars. They can also be sent malware, via an email attachment or link, by a purported job recruiter.
Types of Job Scams
1. Work-from-Home Scams
Work-from-home scams are particularly appealing due to the flexibility and convenience they offer. These scams promise high earnings with minimal effort, making them attractive to many. However, the reality is often far from what is advertised. Two of the most popular work-from-home scams are reshipping and reselling scams described as follows:
- Reshipping Scams: One common work-from-home scam involves reshipping. Scammers advertise for positions such as “quality control managers” or “virtual personal assistants.” Once “hired,” your job is to receive packages at home, discard the original packaging and receipts, and reship the goods to an address provided by the scammer, often overseas. These goods are frequently high-priced electronics purchased with stolen credit cards. Not only do you never receive a paycheck, but you also risk being involved in criminal activity. Additionally, the personal information you provide for payroll purposes can be used for identity theft.
- Reselling Merchandise Scams: Another prevalent scam is reselling merchandise. Scammers claim you can buy brand-name luxury products at a discount and resell them for a profit. They may contact you directly or advertise online. After you pay for the products, they either never arrive or turn out to be worthless. These scams exploit your desire to start your own business and make easy money, but they ultimately leave you out of pocket and disappointed.
2. Nanny, Caregiver, and Virtual Assistant Scams
Scammers frequently target individuals looking for nanny, caregiver, or virtual assistant positions. They post fake job ads on reputable job sites and send emails that appear to be from local community members or well-known organizations.
The scam typically involves the “employer” sending a check, which you are instructed to deposit into your bank account. You are then asked to use a portion of the money to buy supplies or send it to another person. This is a classic fake check scam. The check initially appears to clear, but it eventually bounces, leaving you responsible for the entire amount. Meanwhile, the scammer pockets the real money you sent them.
3. Mystery Shopper Scams
While legitimate mystery shopping jobs do exist, many offers are scams. Mystery shopping involves evaluating the customer service and overall experience at various businesses. Scammers exploit this concept by requiring upfront payments for certifications, directories of job listings, or guarantees of job placement.
In another version of the scam, you might receive a check to cover the costs of shopping and your payment. You are asked to deposit the check, complete your shopping assignment, and then send a portion of the money to the scammer. The check is fake, and when it bounces, you are left to cover the losses.
4. Job Placement Service Scams
Job placement services, including staffing agencies and headhunters, can be legitimate, but some operate scams. These fraudulent services promise to find you a job for a fee. They often advertise outdated or fake job listings to lure you in. After paying the fee, you receive little to no assistance in your job search.
Legitimate placement firms do not charge job seekers; instead, they are paid by hiring companies to find qualified candidates. If a placement service asks for an upfront fee, it is likely a scam, and you should walk away.
5. Government and Postal Job Scams
Federal and postal job openings are publicly available and free to apply for, yet scammers advertise these positions for a fee. They promise guaranteed jobs with the government or the U.S. Postal Service, often through official-looking advertisements.
These scams are designed to steal your money and personal information. To find and apply for government jobs, always use official websites like USAJobs.gov or usps.com/employment. Any ad requiring a fee for application or job placement is a scam.
How to Avoid a Job Scam
- Do Your Research: Search for the company or individual’s name along with terms like “scam,” “review,” or “complaint.” While a lack of complaints doesn’t guarantee legitimacy, existing complaints can be a red flag.
- Consult Trusted People: Discuss the job offer with someone you trust to get an outside perspective and allow yourself time to think.
- Don’t Pay for Job Promises: Legitimate employers, including the government, will never ask you to pay for a job. Requests for payment are a clear sign of a scam.
- Avoid Fake Check Scams: Never deposit a check and then send money back or buy gift cards. Authentic employers do not operate this way.
- Educate Yourself: We publish helpful content on our blogs to help people take right decisions while in a scam situation. Our Book is rated 5-star on amazon. Both of these things can help you to better educate yourself against online scams.
Safe Job Searching Tips
For a secure job search, start with reliable sources like:
- USAJobs.gov: The official site for federal government job listings.
- CareerOneStop: Sponsored by the U.S. Department of Labor, this site lists jobs and links to state employment programs.
- USA.gov: Provides local government job listings.
Additionally, be aware that employers may conduct background checks. Understanding your rights in this process is essential for protecting your personal information.
By staying informed and cautious, you can navigate the job market safely and avoid falling victim to job offer scams. Follow us on Twitter and Quora to keep your knowledge updated.
