Identity Theft

The Rise in Online Job Scams: What to Know

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A woman sits at an office desk while using her laptop. There are pens and papers on the desk. A woman sits at an office desk while using her laptop. There are pens and papers on the desk.
Highlights
In this article

Highlights:

  • Online job scams occur when scammers advertise too-good-to-be-true job openings with the aim of tricking you into divulging personal information, sending money or working for free.
  • Common red flags of an online job scam include job listings full of typos or employers who ask you to pay application or other fees up front.
  • As a rule of thumb, if a job opportunity seems too good to be true, it probably is. Stay vigilant and aim to verify an employer is legitimate before applying for any position.

Online job scams occur when scammers advertise too-good-to-be-true job openings with the aim of tricking you into divulging personal information, sending money or working for free. The consequences of a job scam can be devastating: identity theft, severe financial loss and more.

Luckily, with a little knowledge, you can learn to spot the warning signs of a job scam and avoid falling victim to fake employers.

Where do job scams happen?

Job scams target victims through numerous methods. Some of the top places you may run into a job scam include the following:

  • Hiring websites. It's not uncommon to find fake job postings on popular job listing websites like Indeed, LinkedIn® and ZipRecruiter®. These scam listings may come from completely fabricated employers or from legitimate employers whose accounts and profiles were hacked.
  • Email. Fake recruiters also target your inbox. Scammers may send you an email with a suspicious job offer, claiming to have spotted your resume online. The scammer then asks for confidential personal or financial information. Legitimate recruiters and hiring agencies do occasionally reach out through email. However, they won't ask for personal details such as your Social Security number or bank account information.
  • Online ads and social media posts. Advertisements on websites and social media sites may claim to offer low-effort work for high pay. Scammers frequently repurpose old and outdated job ads from real companies to appear credible.
  • Fake websites. Some scammers create copies of legitimate employer websites with slightly different web domains. These domains can be nearly identical to a legitimate company's website — often differing by only a letter or two — making it difficult to tell these sham sites from the real thing.

What types of fake job postings and scams should I look out for?

Scammers may invent elaborate, multi-step schemes to steal your money and your identity. Job seekers should know how to recognize these common forms of fraud.

  • Work-from-home scams generally advertise remote positions that offer high pay for low effort. For example, you may encounter fake job listings for work-from-home positions, including: mystery shoppers, personal assistants, medical billing specialists and data entry professionals. These schemes often require unsuspecting candidates to pay a hefty registration fee or purchase laptops and other work equipment as a condition of employment. These purchases are never delivered, and the jobs don't actually exist.
  • Pay-to-work scams ask you to pay upfront for application or registration fees, luxury goods to be resold and training or certification costs. You'll lose your money and may never receive the promised goods or compensation.
  • Fake check scams occur when scammers send you a check to deposit, asking you to reserve some funds for yourself and send the rest to a third party. When the check eventually bounces, they'll extort you for the money in your bank account.
  • Government job fraud targets would-be federal workers. Job postings may advertise well-paying government jobs in exchange for an application fee or a pricey certification course. Fraudsters often promise to hire you on the spot, even if you're not qualified for the position.
  • Job placement scams use fake postings from recruiters, temp agencies and staffing firms to tempt applicants with a high-paying job. However, these postings may also request your personal information and charge high fees to connect you with an employer. Credible hiring firms don't ask job candidates for money.

How to help stay safe from online job scams

There's no way to eliminate the threat of online job scams. However, these strategies can help you spot common scams and improve your online safety:

  • Verify potential employers and job listings. Research job postings and employers carefully before submitting an application. Also, check the employer's email address for typos or subtle changes to its domain name. For example, a real company website will have an address such as companyname.com. But a fake website may be company-name.us. Search online for public information about any company where you'd like to apply and look for negative reviews. Be sure to visit the company's website to determine whether it's legitimate and secure.
  • Look out for red flags. Keep an eye out for misspellings or poor grammar in job listings and communications. Unusually high salaries, vague job descriptions and positions offering “quick money” are common warning signs of fraud.
  • Be skeptical of requests for payment. Credible employers will never require payment as a condition for hiring you. If you're asked to send money to pay up-front fees or buy specialized equipment, you may be dealing with a scammer.
  • Wait to provide your personally identifiable information. Never give out confidential information, such as your Social Security number, early in the hiring process. If an application asks for detailed financial information, you've likely encountered a job scam.
  • Don't share your credit card or bank account details. When you interview or fill out your job application, scammers may request your credit card and bank account information for fees or payroll purposes. Legitimate employers won't ask for your credit card number. While an employer may request your bank account number for payment by direct deposit, this only occurs after you're officially hired.

If a job opportunity seems too good to be true, it probably is. Do your research and verify if an employer is legitimate before applying for any position. A new job is an exciting opportunity — but it shouldn't come at the cost of identity theft.

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