How to avoid job scams

When you’re hunting for work, a text alerting you to a new listing that sounds like your dream job could be your big break. But it could also be a scam designed to steal your personal information and money.

“Employment scams have been around for awhile, but as technology like AI advances, we’ve seen more scammers try to take advantage of job seekers,” says Toni Frana, lead career expert at FlexJobs, an online platform for flexible job postings.

Job scams ranked among the top five most common scams last year, according to the Federal Trade Commission. They’re also costly for consumers, with a median loss of over $2,000 in 2023.

The growth in remote work leaves people more vulnerable, says Eva Velasquez, president and CEO of the Identity Theft Resource Center, a nonprofit organization that provides advice and assistance related to identity theft. Because job seekers are used to communicating virtually, “they don’t necessarily see conducting an interview by text or communicating by WhatsApp to be a red flag,” she says.

In a tighter job market, more people may be willing to overlook fraud warning signs because they are so eager to find their next position, Velasquez adds.

To protect yourself while job hunting, consider these strategies:

Get familiar with popular schemes

One common job scam involves a fraudster impersonating a real company and reaching out to their target by text, email or phone. Sometimes, the scam artist posts a fake job listing that looks like a legitimate opportunity. Then, the scammer asks for personal information, such as your Social Security number, bank account number for direct deposit, your passport information and more.

Another common job scam starts with the alleged company sending the job seeker a check to cash to purchase supplies like a computer and monitor, says John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, a nonprofit advocacy group.

Look for warning signs

Any communication you receive out of the blue — whether by text, email or phone call — should be treated skeptically, says Frana. She suggests checking the contact information on a job listing carefully to make sure it matches up with the actual company it claims to represent. Sometimes, the URL is similar but not an exact match.

Another red flag is a job offer that sounds too good to be true, says Melanie McGovern, national spokesperson for the Better Business Bureau, a nonprofit that collects and shares business complaints and reviews. For example, the scam may offer a high hourly rate for remote work that requires little skill.

Avoid sharing personal information and go directly to the source

Legitimate HR professionals respect job applicants' data privacy and would not ask for Social Security numbers, bank account information or credit card numbers during the application process, says Victoria Neal, an HR knowledge advisor at the Society for Human Resource Management.

“They are not going to expect an outside person to just give away private information,” Neal says.

If you aren’t sure whether a job listing or text message is legitimate, Neal suggests going directly to the company itself. 

Report any scams you experience

If you do experience a job scam, you can help others by reporting it. The Federal Trade Commission collects scam reports at ReportFraud.ftc.gov. The BBB and AARP also collect scam data. In addition, you can file a report with your local police department.

If you sent funds through wire transfer, reporting the fraud to the FBI within 72 hours can sometimes allow you to recover that money, says Ally Armeson, executive director of the Cybercrime Support Network, which helps people avoid and recover from cybercrime.

If you shared personal information, you might want to consider freezing your credit so no one can open a new line of credit in your name, and changing your bank account number if that data has been compromised, Velasquez says. The Identity Theft Resource Center offers resources for fraud recovery and can offer a tailored recovery plan.

“Please don’t be ashamed or feel you can’t tell anybody. It won’t help you move through this challenging time any faster,” Velasquez says.