21 Common Job Scams & Practical Tips How to Avoid Them! 🥷

I. Introduction

Are you jobless? Are you on the prowl for a new business opportunity? Then keep in mind that you might get more than you bargained for!

Here’s a free tip for you — jobs that are easy to do and pay insanely well don’t really come around that often. So, if you’re looking at an email in your inbox promising you just that, you might be looking at a job scam.

That is why I have prepared an extensive guide on job scams and tips on how to avoid them. Weed your way through the job market without becoming a victim of identity theft!

➤ Popular Job Scams

Suppose you’ve spent the past few months endlessly searching through job sites looking for your next professional opportunity, and you’re just now crossing that thin line between eagerness and desperation. In that case, you might be the perfect candidate for a job scam.

Job scams are much more frequent now than they were before. The most common type, the “work from home” scams, are now seeming much more legitimate than before, given that practically everyone is ditching business attire for fuzzy PJs, and office chairs for living room couches. 

But it’s not just work-from-home scams that are popular among scammers. Other common types of job scams include:

• Pyramyd Schemes
• Data Entry Jobs
• Online Re-Shipping
• Envelope Stuffing
• Wire Transfers
• Product Assembly
• Nanny and Elder Care Positions
• Virtual Assistant Job Scams
• Rebate Processor Scams
• Government and Postal Service Job Scams

➤ Job Scams on the Rise Due to the Pandemic

As mentioned, many people have recently found themselves without a source of income and, therefore, desperate. That means that job scams are more successful than ever. 

If you’re thinking to yourself, “There’s no way I could fall for a job scam; they are way too transparent!” consider the following — in 2020, 14 million people fell victim to job scams.

Further research showed that young adults aged 25 to 34 were most likely to fall for a job scam. That isn’t surprising, given that this particular group of people was the most hit by the pandemic.

Now, even if you don’t fall into that group, you can still become a victim of a job scam. Do you know why? Because they are constantly evolving. Scammers consistently make their pitches more alluring and seemingly legitimate, increasing their success.

That’s precisely why I made this list of the most common job scams as well as the list of tips on how to avoid them. Today, we’ll go over the following questions that are probably swirling in your brain right now:

• What are job scams?
• How do employment scams work?
• Can I avoid job scams in any way?
• Are there job scams on Indeed?
• Are there job scams on LinkedIn? 
• How to recognize job scams?
• Where do I report job scams?

Read through it and educate yourself — it will save you time, effort, and money!

II. What Are Job Scams?

If you’re thinking to yourself, “On my last job, I was underpaid and overworked. If that’s not a job scam, then I don’t know what is!” you’re missing the point a bit.

Although we can all agree that a lot of job offers can have misleading (or downright untrue) information about what you’ll be doing or for how much money, that’s not what job scams are about.

No, job scams are fraudulent offers from people who are attempting to gain a profit (in money or services) from people looking for employment.

The worst part about scammers is how creative they are. Not that long ago, a scammer would offer you this fantastic business opportunity. They would tell you they just needed a little investment of time and money on your part, and you’d be making six figures in no time. 

Today, no one would fall for that. But they’d fall for a low-paid work-from-home job offer. A position that doesn’t require much skill or expertise and doesn’t pay much seems plausible. Some would even give their personal information to these recruiters who offer them the opportunity. After all, it might be low pay, but money is money, right?

Sure, if you ever got a paycheck. Job scams will never, ever pay you. Instead, scammers will either exploit your free labor or, worse, use your personal information to gain access to your bank accounts or steal your identity.

III. How Job Scams Work

More often than not, job scams rely on the desperation of people. They target everyone by casting a wide net in the hopes of catching the few fish that are desperate enough to overlook the red flags. Now, we’ll talk about those red flags in detail a bit later. But, for now, let’s see how exactly a job scam works.

First, you get an email (or a message on social media) that says the Company So-And-So is looking for people like you. You’re a great worker, and they need you on their team. They are a huge corporation, and they are forever growing. 

Funnily enough, they can never prove that with facts. Still, they use the language that makes you think you’re talking to a recruiter who pulls in hundreds of candidates a day. And you are. But they aren’t candidates as much as they are victims.

After they get a response from you, they’ll tell you about the job. It’s either something you are a good fit for (because they profiled you) or something that requires no qualifications whatsoever (which is always suspicious). No matter what the job is, the scam is to either get you to pay money for “training and equipment” or to give them your personal data. Later, they’ll either sell that data or use it fraudulently.

IV. Different Types of Job Scams

Now, I can already hear you moaning, “But why do people even fall for that? Why trust a stranger in your inbox?”

Well, because it’s not just a random stranger. If job scams were that transparent, no one would fall for them. But, remember — 14 million people do. The question is: why?

Well, because scams come from various sources that often seem entirely legitimate. 

1. Emails from Employers, Various Job Boards, or Recruiters

Let’s say you’ve been looking for a job for a couple of months. You don’t even remember how many ads and websites you applied to. Then, one day, you get an email from a recruiter that works for Big Company Of Your Dreams.

The email seems legitimate — they are looking for a worker, and you fit right into their profile. They need workers desperately, and you’re just as desperate to get a job. It’s a match made in heaven! Or is it?

But the email seems so legit, right? They even have a company banner at the end of the email and the company name in the email address.

But does that email just contain the company’s name, or does it belong to the company’s servers? In other words, did the recruiter contact you from an @BigCompanyOfYourDreams email address or just an @google.com or @yahoo.com address?

Most people don’t think to check this. That’s especially true if they’ve been applying to jobs left and right and are just happy someone finally contacted them.

So, some people reply to this email, elated that they’ve been presented with this opportunity, only to get a reply back about how the company wants them on board as soon as possible. That would be great news, except they also want the person’s private information, such as their social security number, complete address, and bank account details.

2. Messages from “Legitimate” Business Pages on Social Media

In today’s day and age, nothing is easier than conducting a successful social media scam. People trust social media completely (even though they shouldn’t). In reality, it’s really easy to make a fake social media profile of a company that will make the employment scam seem more legitimate.

Although social media job scams are somewhat new, that doesn’t mean they aren’t effective. No matter how much social media platforms try, they can’t keep an eye on all profiles simultaneously. That means that getting a Twitter or a Facebook profile with a company logo and a business-like-looking feed is not that hard. After a scammer has that and a few hundred followers, they can pose as a legitimate business.

After all, no one would question getting an offer on social media. That’s where the young crowd gets all their information from anyway, right? So why not use them to find a job?

Although that’s a sound tactic, you must stay vigilant regarding social media job offers. Keep your eyes open for the number of followers. If a huge company is offering you a job, but they only have a few hundred followers on their profile, then you’re right to be suspicious.

3. Apparent Messages from “Legitimate” Employers

Sometimes scammers will go for a more personal approach and fish for potential victims by posing as employees or recruiters from legitimate businesses. The company name is famous (maybe even exceptionally so), which gives the scammer more credibility.

But, again, as mentioned, just because someone has a Google banner in their email signature doesn’t mean they can actually get you a job at Google. That’s especially true if they’re asking for your social security number or money for “paid training.”

4. Messages Received on Job Searching Platforms

Job searching platforms such as Indeed and CareerBuilder are the perfect place for networking. These platforms are where you go to get new connections or a search and apply for jobs.

So, naturally, they are also the ideal playground for job scammers. 

First of all, let’s just say this right away — I don’t think these job boards are bogus. They are an excellent way to browse through potential openings and opportunities. Most of the listings are genuine job offers.

However, although functional, they aren’t perfect. From time to time, you’ll run into a fake job listing on these sites. 

Although you have to pay to list a job opportunity on all these job board websites, you don’t actually have to do much to prove your identity. So, technically, if you have enough money to pay for a listing, you can get a job advertised on a job board website. Do you see where this is leading to?

Sure, all these platforms have a vetting system and a team that does its very best to weed out the fake job listings. But, no one is perfect. So, beware of fake job posts.

5. Messages and Emails from Fake Recruiter or Employer Websites or Fake Job Boards

If you’ve found your way to a website that kind of looks legitimate but doesn’t really look as legitimate as other job board or recruiter websites, it’s probably bogus.

Sure, creating a whole fake website to use for recruiting seems like a lot of work for a simple scam. But again, remember just how many people fall victim to scams every year. Job scamming is apparently a very lucrative endeavor. So why not cut the middle man and create a fake recruiting website? It allows scammers to have potential victims come to them instead of pursuing them.

The trick to recognizing fake job board sites is the registration. If the site requires you to register in order to see available listings or apply for them, and if that registration includes a lot of personal information, chances are, the site is fake.

All of these fake sites will use authoritative language to get you to give them your information. They’ll tell you they need your social security number for “pre-screening” or that they need your bank account details so they can “expedite the payments.”

In reality, they are scamming you.

6. Job Placement Scams

We’ve all seen movies about young professionals that get headhunted by giant corporations, right? So, it’s possible that that happens to you, correct?

Sure, but not in a way a scammer would do it. Many scams actually pose as recruiting agencies or headhunters and staffing agencies. They contact people under the guise of “hunting for the perfect candidate” and present their pitch as an opportunity for the potential candidate to get their foot in the door in their chosen field.

The trick, of course, is that they charge for their services. Not to mention, they won’t actually do their job of getting you a position anywhere. If a headhunter is targeting you but insisting you pay for their services, they aren’t representing a company that wants to hire you. They are just scamming you.

V. Most Common Job Scams to Be on the Lookout For

Now, you’ve been reading all about job scams for a while and about those emails you’ll inevitably see in your inbox. But how do you recognize them? And what do they actually offer? Let’s see which are the most common job scams on the market.

7. Pyramid Schemes

Pyramid marketing is a well-known scam. Unfortunately, many people still fall victim to it. If you get a message or an email about a “great opportunity” that will allow you to “make six figures” with only a “small investment” in advance, then chances are, you have a pyramid marketer in your inbox.

8. Data Entry Jobs

One of the most famous job scams are the data entry jobs that promise you a lot of cash every month for a job that doesn’t require any skill whatsoever.

They’ll ask you for money for training and offer paychecks that make zero sense.

9. Online Re-Shipping

Re-shipping is a common scam. It’s one of those that can land you on the wrong side of the law. Re-shippers re-package packages that come to their address and send them outside of the US. That wouldn’t be that bad if the packages weren’t full of stolen goods.

Not only is that highly illegal, victims of these scams often receive no money. What’s more, they also often have to pay for postage out of their own pocket.

10. Envelope Stuffing

Essentially a pyramid scheme, envelope stuffing is one of the oldest job scams on the market. You essentially sign up (and pay a fee) in order to be able to “make money from home with no effort at all” by stuffing envelopes.

In reality, you’re signing up for recruiting more people into this scheme in order to get your initial investment back (which you never will).

11. Wire Transfers

Another job scam that could land you in jail is the wire transfer scam. Criminals who launder money by transferring it between accounts quickly often enlist unknowing people to help them out in their crimes. They do so by “hiring” them to do wire transfers, essentially making them an accessory to a felony.

12. Product Assembly

Like many other scams, this one relies on people being attracted to the idea of making money from home while not doing much. “You can sit in front of your TV and assemble our product and make huge wads of money!” they say.

In reality, you have to purchase all the materials from the company as well as pay quite a few fees (for training, you see) and in the end not even get money for the assembled product.

13. Nanny and Elder Care Positions

Many care professionals fall victim to scams that are either after their personal details or are using them to steal money. For example, you may apply for a nanny position, get an interview, and “get the job.” 

Then, out of the blue, you’ll get a check in the mail and instructions from your “employer” to keep a part of the money for your services and send the rest to someone else. This is a scam, of course, because the check is not real. Once your bank figures out what happened, they’ll ask you to pay the entire sum on the check (or prosecute you for it).

14. Virtual Assistant Job Scams

Similar to many others, virtual assistant scams rely on gathering your personal, confidential data and stealing your identity or money.

15. Rebate Processor Scams

Like data entry job scams, rebate processor scams include offers of easy jobs of filling online forms. As always, there’s a training fee involved, as well as some money you’ll have to dish out for materials.

16. Government and Postal Service Employment Scams

Getting a steady government job is a dream for many people. That’s precisely how this scam works. For example, scammers offer government jobs with the US Postal Service and only ask for “small training fees” in return.

VI. How to Avoid Job Scams (And Save Yourself a Lot of Time and Effort)

Ideally, you’ll never even get close to a job scam in your life. However, sometimes life throws us a curveball, and it’s good to be prepared. If you’re wondering how to avoid job scams, don’t worry — here is a comprehensive guide.

17. Look for the Warning Signs

A scam might look tidy from the outside, but it can never be perfect. In other words, there will always be warning signs. All you have to do is not let your eagerness blind you.

➤ Too Good to Be True

Overall, this is a tell-tale sign of a scam. If the job you’re applying for (or being headhunted for) requires no skill whatsoever, and yet the pay is impressive, then you either stumbled into Dream Land or you’re being scammed.

Nothing in life is that good.

Also, pay attention to the language the ads use. Scam language is usually too good to be true as well. They’ll list out things like “quick money” and “amazing work-from-home jobs” or “unlimited potential for earning.”

Furthermore, these job scams usually also don’t involve a lot of interviewing. That’s another “too good to be true” moment, given how we all know and dread that famous interview process.

➤ Research Doesn’t Add Up

Not all scams are so transparent, of course. Some will make you work for the imaginary job and even interview. Once you get a call for the interview, you’ll probably do a bit of research about the company.

If you come up short or that research doesn’t add up, then it’s probably a scam. The name of the company might be recognizable, but you can’t find details about the job offer on their website. Alternatively, the name is ever-so-slightly different from the company’s actual name (but similar enough to give the scam some credibility).

Some scammers make fake websites for their bogus companies, so keep that in mind as well.

➤ Unnecessary Calls and Unprofessional Emails

Poorly written emails that are full of grammar and punctuation errors and are also written in an unprofessional manner are probably a part of a scam. 

Furthermore, there’s a chance that you’ll get a lot of calls from a potential scammer. That’s their way of pressuring you (or enticing you) to fall for the scam and give them what they need. A real company would never do that.

➤ Details Upfront

Scammers will ask for confidential data before it’s necessary (or before it would have been necessary were it a real job interview).

➤ Vague Details and No Requirements

Have you ever come across a job ad that is super vague? It’s so vague, you don’t even know what the job is. For example, it lists that you must have a stable internet connection and be a citizen of the United States to get the job, but nothing else.

Vague job descriptions that include little to no requirements for the job are likely part of a scam.

➤ Contacting Via Social Media

No recruiter or HR representative will use Facebook Messenger to contact you and hash out the details of a job offer.

➤ Extra Fees or Other Costs

Of course, a recruiter or a company asking for money upfront (for training materials or supplies) is likely trying to scam you.

➤ No Interviews

Although it is plausible to get a genuine job offer without actually interviewing, that happens so rarely that you can easily consider this a huge red flag.

18.   Do Your Research

Use the internet to your advantage to avoid scammers. Research the company that posted any job that you’re considering applying for.

19.   Never Give Personal Information

Disclosing your confidential information that isn’t already included on your resume should never be done. 

20.   Verify the Security

As mentioned, some scams go above and beyond to trick you. They might have a legitimate-looking website that seems trustworthy. But, check their security. If the website has only http:// instead of https://, that means it isn’t secure.

21.   Ask Someone You Trust (Or Other Employees)

Let’s say that the scam is so well done that they have a website and a social media following that gives them some credibility. That doesn’t necessarily mean you should believe them.

Dig a little deeper and try to find their employees (on LinkedIn, for example). Alternatively, look for online reviews of the company and any disgruntled ex “employees” who might have bad-mouthed them online.

Bonus Tip #1: Don’t Accept Jobs You Didn’t Apply For

Scams often come from sources you previously had nothing to do with. If you don’t remember applying or even visiting the website they claim they got your contact information from, then trust your gut and don’t move further with the “job offer.”

Bonus Tip #2: Know Where to Go for Help

If you do come across a job scam, report it immediately. The Federal Trade Commission (FTC) has a page online where you can report job scams that you saw or lost money on.

The best way to protect yourself from scams is to:

• Never trust a job offer until you can verify it.
• Do your research on both the company and the recruiter who reached out.
• Never send money for “training and supplies” to potential recruiters or employers.
• Never give out personal information to third parties.
• Be wary of a job opportunity with an employer who insists on conducting everything online or “via email.”
• Be wary of job listings that don’t require any experience and are incredibly vague when it comes to job descriptions.

These were the most common job scams and the tips on how to avoid them in a nutshell. Have you tried some of these tips before? How did they work out for you? Did they help you weed out potential scammers?

Let me know in a comment down below! Furthermore, if you have any other tips that could help our fellow job-searchers avoid scams, don’t hesitate to share. Let’s help each other out!

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