If it sounds too good to be true, it probably is.
At least, that’s what more and more Gen Zers, Millennials, veterans and others are discovering from a plethora of online job postings that are turning out to be costly scams.
The number of so-called “business and job opportunity” disadvantages has increased fivefold in the past five years to about 105,000 by 2023, says the Federal Trade Commission, a watchdog.
Although victims only lose a few hundred dollars each, that amounts to approximately $450 million per year for the scammers, who post on Upwork, LinkedIn, Indeed, and other trusted sites.
The scam has only become more widespread since Lara Lafferty posted her TikTok warning
Gen Zers and millennials are the most likely to be scammed in America’s explosion of job scams
Victims have used TikTok to express their anger and warn others.
LA-based artist Lara Lafferty stumbled upon a part-time, work-from-home proofreading gig for a food website on Upwork that allowed her to pursue her creative goals.
“It was the perfect job, the perfect opportunity, the perfect flexibility,” said the redhead from California.
She describes an elaborate process to deceive her, including a ‘full’ Skype interview, a lengthy questionnaire and contact with several fake staff members.
They used legitimate-looking email addresses with the names of real employees of the food website.
She was “super excited” when she heard she got the job, she says.
But the elation turned to alarm when her so-called new boss talked about the equipment she would need to edit web pages.
TikTok creators are warning others about how easy it is to get duped in the employment scam
BBB released this example of a letter intended to trick a job seeker into a hiring scam
Lafferty would need a computer with software pre-installed and supplied by a third-party vendor – $2,000 which she would have to pay for and get back directly from the company.
That was a red flag.
Lafferty became suspicious and independently contacted the named staffers.
She discovered she was duped by a scammer.
“It was literally the most legit scam I’ve ever seen,” she says.
‘I was devastated when I found out it was fake.’
Lafferty was targeted in the early days of the online job scam that spiraled during and after the pandemic.
The FBI recorded approximately 15,000 victims of the scam in 2022, amounting to losses of more than $52 million.
Scammers lure job seekers with lengthy online chats about their open positions, as this example from BBB shows
California, Texas, Florida and New York are the states hardest hit by the scourge, the FTC says.
Scammers typically use professional job boards, such as LinkedIn, to find targets.
The tasks are often simple, such as data entry and writing Google reviews, which are suitable for many people.
Many are offering the chance to make money by working from home – a popular option since the pandemic.
Most victims are in their 20s and 30s, says the Better Business Bureau (BBB), a watchdog.
But veterans are increasingly being duped by job fraud, says the U.S. Department of Veterans Affairs.
The VA warned ex-military personnel this month to be on the lookout for fake jobs as nannies, caregivers and virtual assistants.
They are being targeted “because they have access to benefits and resources,” the group added.
LinkedIn says it checks for spammers and scammers and catches 99.6 percent of fake accounts.
This TikToker discovered that the job site was indeed full of false messages from fraudsters
But that still leaves almost 200,000 false identities slipping through the net.
The scams vary, but most commonly involve identity theft, reshipment schemes and counterfeit check payments, BBB says.
Usually the ‘new employee’ is tricked into sending money, as was attempted with Lafferty.
Sometimes they only want personal information, such as bank account numbers.
In other cases, the victim is asked to perform real tasks, but they end up laundering cash as a ‘money mule’.
Some scammers use artificial intelligence and image editing tools to make them look like the real thing.
Others carefully replicate the design style and email address formats of real companies.
LinkedIn and Facebook are indeed widely used by scammers, BBB says
For many job seekers the difference is not visible.
They are duped because they need the work and a payday.
People are advised to be alert to telltale signs of a scam.
Many scammers are based abroad and do not always use correct English.
As Lafferty discovered, a basic search of the recruiter’s name can reveal a scam.
If possible, contact them via an alternate email address or social media platform.
And don’t send money to the ’employer’; they should pay you.