Job hunters warned to be wary of scams

The Idaho Department of Finance is warning jobseekers to be aware of employment scams in light of a recent consumer complaint the department received and the continued prevalence of these scams nationwide.

In the first quarter of 2022, U.S. consumers were scammed out of $68 million as a result of fake business and job opportunity schemes, according to the Federal Trade Commission. Although this is not a new threat, it continues to have a devastating impact on victims resulting in monetary harm, identity theft and even unwitting involvement in criminal schemes such as money laundering.

Patricia Perkins, director of the Idaho Department of Finance, said employment scams target people intentionally seeking to improve their financial futures. Consumers are urged to take precautions to verify the identity of the job poster and position before they engage.

Employment scams occur when cyber criminals deceive jobseekers into believing they have a potential job, then leverage their role as an “employer” to elicit the desired information or action from the victim. These criminals pose as employers or recruiters online much like legitimate employers do, through employment websites, advertisements on social media channels, newspapers, or may communicate via unsolicited emails or text messages. They lure jobseekers with flashy descriptions or low-effort, high-reward offers.

According to a consumer advisory from the FBI, most often cyber criminals impersonate a company’s website by creating a domain name that is similar to a legitimate company, then post fake positions on popular websites that direct jobseekers to apply on the spoofed sites. Applicants are contacted by email to conduct an interview using a teleconference application. After being interviewed, victims are offered jobs, usually in a work-at-home capacity.

To appear legitimate, criminals may send victims an employment contract to physically sign, and request a copy of the victims’ driver’s licenses, Social Security numbers, direct deposit information and credit card information.

Criminals may request payment upfront for costs that will later be reimbursed such as background checks or start-up equipment, but once they get money, criminals cease communications.

In the recent consumer complaint the department received, the victim responded to an employment advertisement on social media, securing what was described as a project management position. Several days after depositing their first earnings check, the consumer received notification from their financial institution that the check had been returned, resulting in substantial financial loss to the individual; this is also known as a fake check scam.

Fake check scams often occur in conjunction with employment scams; a consumer receives a check with direction to deposit the funds and instructed to repay excess funds by purchasing gift cards, wire transfer, or investing in cryptocurrency. Eventually the check bounces, and the consumer is liable to repay the funds. Consumers should be aware that a cleared check does not equate to a good check. Financial institutions are required under law to make funds available shortly after a deposit is made, and it can take several days to determine if the instrument is false.

Consumers are being urged to consider some guidelines before beginning a job search or responding to an offer including:

Never provide personal information upfront.

Be skeptical of vague communication from a potential employer.

Watch for interviews conducted via teleconference applications that use email addresses instead of phone numbers.

Research the company or name of the person that claims to be hiring.

Beware of any job offer that requires payment.

Anyone suspecting they may have been a victim of an employment scam is urged to immediately contact their financial institution or holder of the account that was used to transfer payment and report the suspected activity.

Keep copies of all communications with scammers and report them to the FBI’s Internet Crime Complaint Center at ic3.gov/Home/ComplaintChoice and the Federal Trade Commission at reportfraud.ftc.gov.

If applicable, report the activity to the website in which the job posting was listed, and to the company the cybercriminal impersonated.

Update personal passwords, enable multifactor authentication when possible, and update computer’s security software if a scammer has remotely accessed the computer.

Hedberg may be contacted at kathyhedberg@gmail.com or (208) 983-2326.