Job listing seem too good to be true? Recruitment scams are an emerging type of job scam in which a fraudster pretends to be recruiting for a fake position and reaches out to job seekers via social media, job-hunting websites, or email. The fraudster typically moves the applicant through the interview process quickly, offers them a job, then tries to steal their personal information to commit identity theft and/or financial fraud. Always verify that a job listing — and business it’s for — is legit before proceeding with the hiring process.
Job hunting can be a stressful process — one that’s made even more stressful by the fact that job scams are on the rise.
Data from the Better Business Bureau’s (BBB) Scam Tracker revealed that during the first three months of 2023, self-reported losses to employment scams were 250 percent higher than during the same time period in 2022. Job scam victims reported a median loss of $1,500 — with total losses reaching almost $840,000 in those three months alone.
Recruitment scams are a type of job scam that is particularly arduous as it can lead to identity theft and/or financial fraud, on top of wreaking emotional havoc during an already vulnerable time.
What are recruitment scams?
Recruitment scams start with a phony recruiter or headhunter. In most recruitment scams, the fraudster initiates contact with a hopeful job seeker via social media sites like LinkedIn or Facebook, job-seeking websites like Indeed, or via email.
They message saying that they found the person’s resume and are recruiting for a role that would be a perfect fit. Sometimes these “recruiters” make up a company entirely and create a credible looking (or a not-so-credible-looking) website.
Other times, they claim to be recruiting on behalf of a well-known tech or healthcare company.
The goal of recruitment scams can vary: The fraudster may be trying to commit identity theft by stealing your personally identifiable information (PII), or they may be looking to commit financial fraud — or a combination of both.
Anyone on the job hunt is at increased risk of falling victim to a recruitment scam, especially those who post publicly that they’re job searching and are active on job-finding and social networking sites like Indeed, ZipRecruiter, and LinkedIn.
The ins and outs of recruitment scams
Once the conversation has begun, the “recruiter” typically hurries the interview process along and offers a job, sometimes even providing an official-looking job offer and contract for you to sign.
When identity theft is the goal, as soon as you think you’ve landed the gig, the “recruiter” (or a “hiring manager” or “HR staffer”) asks you to provide personal information like your Social Security number, driver’s license number, birth date, address, and even bank account information to get you set up as a “new hire.”
Another potential outcome of a recruitment scam is financial fraud. To steal job seekers’ money, phony recruiters may offer you a job, then say you’ll need to outfit your home office with various tech tools.
Sometimes they’ll ask you to pay for those out of pocket, directing you to a vendor who is part of the scam and requiring you to use PayPal, Zelle, or another form of payment (that doesn’t offer fraud protection).
Other times, they send a fraudulent check to cover the expense, but then say they overpaid and ask for a chunk of the money back from you. When the fake check bounces, you’re out the money they “returned.”
Job placement service scams
Job placement service scams are another iteration of recruitment scams. In this scam, phony headhunters or job placement firms initiate contact with a job seeker, saying they can help land their dream job — if and only if they pay them in advance for their services.
Know that legitimate headhunters, recruiters, or placement firms do not typically charge job seekers; rather, the company that’s hiring pays the recruiter a finder’s fee when an employee is hired. If a headhunter or placement firm asks for advance payment, consider it a scam.
How to know if a job is a scam
One of the trickiest parts about recruitment scams is that many recruiters and headhunters are legitimate and oftentimes do initiate conversation with potential hires using social media sites like LinkedIn.
So how can you tell whether the recruiter who’s in your inbox is credible or not, and whether the job they’re recruiting for is real or a scam?
The position pays more than you think it should. If a recruiter’s describing a job that pays much more than the normal salary range for that type of position, it’s likely a scam. That’s especially the case for entry-level positions or those that don’t require much experience.
The recruiter asks you to download a new app to message about or interview for a position. According to the Federal Trade Commission (FTC), some phony recruiters ask job seekers to download the app Telegram to interview for a job. Another red flag is if the interview process takes place only via social media or text message rather than through traditional methods like an in-person interview, series of phone calls, or video conference.
The interview process is minimal. Even if a position is remote, it’s abnormal for interviews to be held via text or email only. It’s also abnormal for there to be only one interview before a job offer is extended. Be wary if the interview process seems too easy or is especially quick moving.
The recruiter’s profile or contact information looks suspicious. Pay close attention to the person behind the message. Check whether they have a profile picture and whether it aligns with other social platforms or the company’s website. Additionally, Google their name and affiliation with the firm they say they’re with, and research whether the company they’re hiring for is legitimate. Also pay close attention to their email address. Is it a personal email address, rather than a professional email? Red flag. Is there a typo in the business name? Red flag.
The job listing or recruiter’s correspondence has striking grammatical errors. Legitimate companies have a thorough process for writing job listings; if it reads unprofessionally, it probably is.
The job opening isn’t listed on the company’s website. If you’re approached by a recruiter, check the company’s site for the job description and listing. If you don’t see it, reach out to the company directly to be sure it’s a legitimate role that’s being recruited for. If you can’t verify that it’s legit, cut correspondence.
You must pay money or supply your credit card number to apply for a job or obtain equipment for a position. No legitimate recruiters or companies will require you to pay for this out of pocket. If you’re required to pay an application fee or buy tech gear to start a new job, walk away.
What to do if you’ve been scammed by a recruitment scam
If you’re an Allstate Identity Protection member, give us a call using the number on your account dashboard. Our restoration specialists are available 24/7 to help determine the next steps and to begin the remediation process if your identity has been compromised.
If you’re not a member and you suspect or fall victim to a job scam, report it to the Federal Trade Commission at reportfraud.ftc.gov, to your local attorney general, and to the Internet Crime Complaint Center (IC3).
And if you’ve lost money to a recruitment scammer, contact the company you paid the money through, alerting them to the fraud (though in some cases, you still may not be able to get it back).
