10 of the Most Common Job Scams of 2024

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KEY POINTS

  • One of the most common job scams involves asking you to pay upfront for training or materials.
  • Advertising a nonexistent job is one way scammers attempt to gather personal information, such as your Social Security number, address, and bank account.
  • Before applying for any job, you should do your own research to determine whether the job (and company) are legitimate.

FlexJobs, a subscription service that helps job hunters find remote and flexible jobs, including work-from-home positions, freelance work, and part-time employment, recently brought a startling statistic to our attention. According to the Federal Trade Commission (FTC), employment scams tripled between 2020 and 2021, and continue to grow.

You'll notice that scammers came out of the woodwork in the early days of the pandemic as unemployment crept dangerously high. It continues as Americans continue to seek jobs that offer a life-work balance and bring them satisfaction. Here, we take a look at 10 of the most common job scams, as shared by FlexJobs.

1. Fake job postings

With the help of artificial intelligence (AI), scammers have learned to create fake companies and jobs. They even create fake websites to go along with their sites and job postings. The goal is to get you to apply for a job and use any personal information you provide -- including your Social Security number and address -- to steal your identity.

If there's an ounce of doubt, find the company's contact information on its real website, and call to learn if the job posting belongs to them. Do not use any information taken from the website you're directed toward.

2. Cryptocurrency exchanges and Ponzi schemes

Another scam involves convincing a mark that they can invest in a "sure-fire" investment. People sign on after being offered a huge profit at very little risk. Once the mark has taken money from their bank account and transferred it to the person on the other end of the line, the money is gone forever, and so is the scammer. Never invest with a company that introduces itself to you. There are plenty of legitimate brokerages that will handle your investments honestly.

3. Posing as a legitimate job board or company

There's nothing to stop a scammer from using an existing company name you can trust to give their scam legitimacy. The scary part is how legit they look on the surface. However, with a little snooping, you can identify a fake. For example, a job board may instruct applicants to send their resumes to a specific email address.

Again, learning the truth is as easy as calling the company the scammers are pretending to be part of and asking for verification. In the meantime, do not give the scammers the opportunity to empty your checking or savings account.

4. Slightly altered web addresses

One way scammers get away with claiming to be part of a respected organization is by recreating the legitimate company's website as closely as possible. What will be different is the URL (because only the real company website has the real URL).

Let's say you get a work-from-home offer from a company claiming to be FlexJobs. FlexJobs' URL is FlexJobs.com. If the website you've been directed to is different -- like FlexJobs.org or FlexJobs.net -- you know you're being scammed. Do not provide any personal or financial information unless you're certain you're dealing with a legitimate company.

5. Taking a shortcut to your personal financial information

Typically, when you're offered a job and have accepted, you provide your new employer with your Social Security number and address. If you're having your paychecks automatically deposited, you'll need to give the employer your banking information. If a company asks you for this information before you've checked it out and accepted the job, it's probably a scam. Do not provide personal information until you know who you're working with.

6. Recruiting through social media and chat

Scammers like to use instant messaging services like WhatsApp and Telegram to conduct fake job interviews. If you're unemployed and need to pay your mortgage and other bills, you may be tempted to believe it's a real job interview. If someone reaches out to you through chat of any kind, ask to speak with them via telephone. Even then, research, research, research.

7. Online reshipping

Falling for an online reshipping scam means accidentally becoming a criminal. Here's how it works: Your new "employer" tells you you can work from home. Your job consists of repacking and mailing goods. What you may not know is that those goods you packaged are stolen. Again, research whether the company is legitimate.

8. Data entry scams

One common scam involves promising a lot of money for a job that does not require a high level of skill. Once you're on the hook, the company tells you that an upfront payment is required for processing or training. No legitimate data entry job requires you to pay for processing or training or make unrealistic promises about wages.

9. Pyramid investment schemes

Those lucky enough to be near the top of a pyramid scheme will scream from the rooftops that their business is legit. It works like this: You're asked to invest with the promise that you'll make money when people who follow you into the program invest. In order for you to make money, someone else has to lose money. It's as simple as that. Unlike the Egyptian pyramids, pyramid schemes are not built to last.

10. Assembling products

This scam has been around for a long time, primarily because it's so effective. In it, you're offered a work-from-home assembling position. However, you're told that you are required to pay an enrollment fee and purchase the supplies and materials you'll need to get started.

Naturally, you have to purchase the supplies from the scammers. Once you pay, the chance of receiving an assignment is low. Even if you do, these companies are known to reject the finished products because they never had any intention of paying you.

Whether you're looking for a full-time job or hoping to find a side hustle to add cash to your budget, scammers are on the lookout. As a general rule, if you can't verify a phone number, street address, web address, or an employee's name, you're looking at a scam. Your best bet is to block them and move on.

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