Common Job Scams (With Some Real Examples)
In today's business landscape, the job market offers various work opportunities. However, the competition has become tougher than ever before. Worse, job scams have become prevalent.
About 14 million professionals get exposed to employment scams yearly, resulting in an annual direct loss of about two billion dollars. Not only do these negatively impact the job applicants, but also the companies being impersonated.
As a job seeker, how can you identify and avoid job scams?
This page tackles some of the typical job scams out there. Read on to learn how to protect yourself from these.
What Is a Job Scam?
A job scam is exactly what it sounds like—a fraudulent offer for a job. Think of fraudsters posting fake job listings, sending too-good-to-be-true email offers, or deceiving people on social media with fraudulent job ads.
In job scams, fraudsters deliberately mislead people who are seeking work opportunities. They deceive job seekers to milk money, extract personal information, and even win free labor. They target every job applicant from all walks of life, especially those aged 24-35 years old (at 22.28%).
As a job applicant, you should be wary of potential scams during your application journey. Job scams can delay your chances of getting selected, screened, and eventually hired. They can hinder your roadmap to career progression and professional growth.
Discover some of the most common job scams in the next section.
Common Job Scams To Beware of
Job hunting requires perseverance, patience, and resilience. Why? Job search fatigue is real—Nearly three-quarters say the job search process is one of the most stressful things in life. Specifically, the average job-seeker should send 162 applications to get an offer.
And to add salts to the wounds, employment scams are common. The last thing you want to happen is to become a victim of one of these. So, identifying, avoiding, and reporting job scams should be a part of your job search checklist.
That said, here are common employment scams you should be wary of:
1. Work-from-home scams
There's no denying the rise of the gig economy—the industry for freelancers. Its global market could grow from $556.7 billion in 2024 to $1,847 billion by 2032 at a 16.18% compound annual growth rate (CAGR). These independent contractors work for global businesses by filling temporary roles and/or part-time positions.
Many professionals would love to join the gig economy due to the remote work setup (besides lucrative offers). However, they easily and quickly fall for remote job scams, where recruiters falsely promise a flexible work arrangement. This makes fraud work-from-home (WFH) jobs common in today's digital landscape.
2. Fraud email offers
You might have heard of a phishing scam as a cyberattack. This entails deceiving people to provide sensitive information via email. Phishing attacks apply to the job market, where fraudsters email job offers to gullible people. These attacks are widespread in employment, so professionals should always be wary of them.
Additionally, fraud recruiters send fake emails about a job ad, process, or offer to get money from people. They not only ask for bank details to provide for payroll purposes but also demand payment for a successful application. Take a look at this perfect email example of a job scam asking for payment information:
3. Fake job listings
While job hunting can be challenging and exhausting, the Internet offers several work opportunities. The web has a gold mine of job search websites, allowing employers to advertise available positions and professionals to apply for jobs. The problem, however, is that not all job listings are real and legitimate.
It happens that some job search platforms have fake job ads. Think of some professionals having encountered Glassdoor, CareerBuilder, and Indeed job scams. These fraudulent postings require web administrators to double-check their employers' job ads and professionals to be aware of the warning signs.
4. Social media job fraud
Fake employment appears not only on job search websites but also on social media. Think of Facebook, X (Twitter), TikTok, and even LinkedIn job scams.
While Indeed is the most utilized by job scammers for engaging with targets, LinkedIn and Facebook are among the most reported social media platforms. Take a look at the facts and figures below:
Since they know that people live and breathe on these channels, fraudsters victimize some people on these platforms. They advertise job ads as if they're real, deceive users, and prompt them to take desired steps, such as providing bank information.
5. Job placement service scams
Outplacement services are willing to help people find and get a job. These placement agencies work with employers and help job seekers process their applications.
However, fraud agencies exist to deceive professionals, which has become extremely common in today's business landscape.
Case in point: Think of Whatsapp job scams, where an outplacement agency recruiter sends you an overseas job offer. When you bite the bait, they ask you to visit their office and submit all your paperwork. They then ask for money as part of the hiring process, and months later, they appear nowhere to be found. You realize that you've been scammed!
6. Unreal government jobs
When it comes to employment scams, the government is no exception. Some fraudsters take advantage of available positions offered by some offices and agencies. Think of Telegram job scams and fraudulent government jobs posted on job search websites. They usually perform this trickery outside of the government's official websites.
As a professional, it's imperative to be highly critical when applying for government jobs. The safest approach is to apply via their official websites, such as USAJobs, USA.gov, and USPS Career Page. The last thing you want to happen is to become a scam victim and lose the opportunity to work for the government.
How To Protect Yourself from Job Scams
Job scams can hurt your application journey and employment experience. They can pose an obstacle to your work opportunities and career development.
That's why it's crucial to learn how to identify fake jobs. More importantly, you should also know how to report job scams. That way, you can stop these fraudulent activities and save others as well.
That said, here's how to protect yourself from potential employment scams:
1. Spot warning signs
You might be aggressive in your job hunt. You probably visit job portals, send various applications, and even leverage AI for job searches. But while at it, be wary of some warning signs of a potential job scam:
- Persistent calls: Recruiters make unnecessary calls almost frequently.
- Unprofessional emails: The emails sent for the application process aren't well-polished.
- Upfront details: Recruiters ask for personal details, especially sensitive information.
- Money involvement: Money is involved in the job application process.
- Fake accounts: Recruiters have suspicious profiles with questionable brand names.
- Lucrative job offers: The salary offer is so high for the standard market value—too good to be true!
Conrad Wang, Managing Director at EnableU, recommends being highly critical in your job application. He advises understanding what a job scam looks like.
Wang says, "Job scams can be sneaky, so stay sharp. If something feels off—like constant calls, sloppy emails, or requests for personal info—trust your gut. A legit job won't ask you for money or make promises that sound too good to be true."
2. Do your homework
The next logical step is to conduct research if you suspect a potential scam. Don't worry, as the Internet is a goldmine of information. You can even use web scraping tools to extract data and discover fraud jobs. Here's what you need to do:
- Contact the employer. If a recruiter sends you a job ad or offer, check this directly with the employer.
- Ask for pertinent details. While at it, get legitimate information, such as the business website and social media profile.
- Check the website. Take the time to visit the site to see if they're legitimate as an employer.
- Examine social media. Check their social media account, whether LinkedIn profile or Facebook business page.
- Look up online reviews. Online forums like Reddit and Quora reveal potential scams in the job market.
Tom Golubovich, Head of Marketing & Media Relations at Ninja Transfers, suggests performing due diligence. He mentions checking the company's profile and job description before sending an actual application.
Golubovich explains, "A little research goes a long way in avoiding job scams. Before applying, check the company's website, social media, and job description. If details seem vague or don't add up, that's a red flag—trust your instincts and move on."
3. Hold your personal info
The most essential tip is never to share your personal information if you're in doubt.
Don't send in your application and provide confidential details if you haven't done your homework yet. Even if the recruiter or hiring professional leverages robust cloud communications, it won't hurt to do your research.
Here are personal information you should never disclose:
- Date of birth (DOB): Most of your accounts require your DOB for verification and access.
- Mother's maiden name: To avoid compromising your accounts, you shouldn't disclose this key information.
- Social Security number (SSN): Never provide your complete SSN during your application process, even the last four digits, unless you're officially hired.
- Bank account details: Your bank account should never be associated with your job application. You can only provide it for payroll purposes once you're hired!
Learn from Adrian Lorga, Founder & President at 617 Boston Movers. He has his fair share of encountering multiple job scams. However, he always advises never to share personal, sensitive information during the hiring process.
Lorga shares, "Protect your personal info like it's your bank password. If a job asks for your Social Security number, bank details, or other sensitive data too soon, that's a huge red flag. Legitimate employers won't need that until you're officially hired."
4. Trust your instinct
Job scams can be tricky—they look like they're legitimate. Even if you've done your research, you can still fall prey to fraudulent activities.
The rule of thumb is simple: if you have even the slightest doubt about a particular job ad or offer, back off—Trust your instinct! Here's what you need to do:
- Be wary of the warning signs. Start by familiarizing yourself with the telltale signs of a job scam cited above.
- Never share your personal details. As mentioned, never ever disclose sensitive information like your SSN and credit card number.
- Secure your network and accounts. During the application process, when some recruiters contact you, protect your website network and financial accounts, such as credit card and funded accounts.
- Don't take immediate action. If your instinct tells you something's off about the job, never take the first step. Do so only after your research!
- Retract your application if in doubt. It's crucial to track your job applications during the recruitment process. Should you find something odd, immediately stop your application and report a job scam.
Adrian Lorga has also witnessed colleagues becoming victims of a job scam. He believes you can never go wrong by trusting your instinct during your job application.
Lorga mentions, "If something about a job offer feels off, trust your gut. Scams can look convincing, but your instincts are a powerful first line of defense. When in doubt, step back, do more research, and don't be afraid to walk away."
Final Words
Employment scams are prevalent—they are everywhere, ready to attack job applicants.
Be wary of the common fake jobs, whether WFH scams, fraud email offers, or unreal government jobs. More importantly, follow our crucial steps for protecting yourself from potential job scams.
Applying for a job is already a struggle—what more, evading fraud work along the way? With informed career decisions, you'll rise above any application challenges and get the job you so deserve!
Looking for a job without falling prey to any scam? Count on Loopcv—Upload your resume and choose the job you're interested in. To get started with us, sign up for an account!
