In today’s society, it seems impossible not to get a random SMS, email or phone call that’s trying to scam you out of money or information. Unfortunately for job seekers, the recruitment market is no different, with employment scams being the fastest growing scam type in 2023, according to Scamwatch, with Australians reporting losses of $24.7 million, which is 183% higher than in 2022. However, many employment scam cases go unreported, so unfortunately, this figure is only the tip of the iceberg.
What are Employment Scams, and what do they want from you?
Employment Scams or job scammers lure people in with fake job positions that simply don’t exist. These positions are often advertised with high financial benefit for little effort and promote an easy method to make money quickly. These scams can take many shapes and forms and can have severe consequences for the victims, including identity being stolen after they provided their driver’s license or passport, thinking it was part of the employment process, financial theft and even people who have unknowingly helped criminals to launder money.
3 Common Employment Scams
There are many different employment scams impacting people. Here are a couple of the most common scams.
Dream Job
This is when the scam poses as a company during the hiring process and offers a person their “dream job.” The person accepts the position and resigns from their previous role, only to turn up on the first day at the company’s office and find that no one has ever heard of them or hired them for that position.
You might wonder what a scammer would get out of doing this to someone, but what they have done is sign a bunch of documents with your personal information (Bank details, Superannuation, Tax File Number) as well as providing identification documents allowing scammers to commit both identity and financial fraud. Not to mention the horrendous fallout and effect on this person's income stream as they resigned from their previous job to a position that no longer existed.
Upfront Fee
As the name suggests, this scam revolves around scammers approaching potential victims and offering them a ‘job opportunity’ that pays highly to work from home. To accept this job, the person needs to pay an upfront fee for what they describe as a ‘starter kit’ or ‘training’. Sometimes, they also ask for a form of identification (e.g., driver’s license or passport), making the victim both a target for losing money and risking identity theft. Don’t fall for paying an upfront fee; it is very usual for a legitimate organisation to request a payment from you.
Commission-Based Job – That incriminates you.
Typically, this scam involves being approached by scammers to earn a commission. The scammers transfer funds into the person’s personal bank accounts, and from there, they are instructed to transfer the money into another offshore account, cryptocurrency, or gift card. Unfortunately, this scam assists the scammers in laundering money and has made you an accessory to their crime.
How to Avoid Job Scams? Look out for these Red Flags!
In a world filled with technology and social media, completely avoiding any scams these days can be challenging due to the continuous harassment and lengths scammers go to. Here are some red flags that should help you identify the legitimacy of the job offer and avoid getting scammed when applying or looking for your next role:
You’re contacted about a job that is all about earning money fast, with no experience required
Be suspicious of any unsolicited ‘work from home’ opportunities, especially if you are contacted on the social media platform
Receiving a job offer without an interview
Vague or unusual information on the job advertisement
Unprofessional emails and unnecessary phone calls
Fake accounts, websites and unfamiliar software … don’t press those pesky and dodgy links!
If the organisation is requesting your details upfront
The hiring process is rapid and ‘too’ easy
Any form of the company or recruiter trying to get you to make a payment to secure a job
Examples of Job Scams
Our very our consultants at Blackman Recruitment have experienced and received employment scams in the form of text messages via WhatsApp, below are some of the text messages that have red flags galore…
How to protect yourself from employment scams?
Make sure you research the organisation or agency and see if they are reputable
Only apply through verified and reputable job search engines (e.g. Seek or directly through the organisation's website). Many of these scam jobs are being advertised on social media or through encrypted chat applications
Protect your personal information by not handing it over easily
Look for complaints – job sites often have a review section where employees and candidates can share their personal experience
Finally, trust your instincts… If it sounds too good to be true, unfortunately, it probably is
What to do if you think you’ve been scammed?
Ultimately, if something feels wrong with a job opportunity or offer, Stop, Check and Reject.
If you think you’ve been scammed, head over to the ScamWatch website and report the scam. This may also confirm your experience with others. ScamWatch is also a great platform to find out and learn more about scams. If the job advertisement appeared on a legitimate job site, e.g., SEEK, you do have the ability to ‘Report’ the job as fraudulent at the bottom of the ad.
For financial scams ensure you get in touch with your bank's fraud team immediately for assistance, they will be able to assist you quickly to stop or recover fraudulent payments.
Above all, you should take control back into your own hands and change passwords and PINS straight away if you suspect a security threat or that your data has been compromised.
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