Latest news with #employmentfraud
CNET
22-07-2025
- Business
- CNET
Some Jobs Are Too Good to Be True, Especially in a Tough Labor Market
ArtMarie/Getty Images The job market feels tougher than ever right now, despite relatively low unemployment rates. So imagine being one of the 1.6 million Americans hunting for a job for at least six months, then, at long last, you get an unprompted message from a recruiter. You're offered a work-from-home position, making thousands of dollars a day. All you have to do is fill out a form with your personal information or in some cases, pay for a starter business kit. Too good to be true, right? Yes. Opportunities like this are usually employment scams. They may not always look like this, but job scams in general aim to coerce you into spending money you'll never get back or trick you into giving up your data. Telling them apart from real job opportunities can be tricky, especially when you're itching to find work. Here's how to tell if a job prospect is legitimate or just a scammer after your cash. Read more: Employment Identity Theft Happens More Often Than You Think How job scams work Job scams can take on many different forms depending on the end goal, and practically anyone can be a target. Victims lost $501 million to job and employment agency scams in 2024, according to the Federal Trade Commission's annual fraud report. Criminals impersonate a recruiter, business owner or hiring manager to advertise fake jobs or opportunities for nefarious purposes. In some cases, fraudsters will set up bots to target people who have posted on LinkedIn about being laid off or being "OpenToWork." Individuals may get seemingly non-targeted text messages about available jobs. These texts are easy to ignore for those who haven't been on the job hunt, but individuals currently looking for a job could easily assume the texts are related to their search. This is an example of an unprompted text message I've received previously. Screenshot by Holly Johnson/CNET I replied to the first message to see what they would say, knowing it was a scam. As a general rule, however, you shouldn't respond to spam messages because it confirms for the scammer that the number is active and that you are willing to respond to future phishing attempts. The recruiter responded by setting up an interview via WhatsApp, but I never showed. Screenshot by Holly Johnson/CNET The FTC warns that some fake job scams promise work-from-home opportunities where you can make thousands of dollars on their own time. But these scams only exist to lure desperate people into purchasing expensive "starter kits" for what they believe to be their new business venture. Reshipping opportunities are yet another popular job scam. This involves the victim agreeing to receive packages at their home that they in turn repackage and ship to another address. The products themselves, often electronics, were likely purchased with stolen credit cards, and before you know it, you've found yourself involved in the middle of a larger scam. The check you're promised for helping ship products also never comes. For more examples of recent scams, you can check the Better Business Bureau scam tracker. Type "job" or "employment" in the search bar to bring up thousands of different employment scam complaints, including details on how they worked and the amount of money lost. How to avoid employment scams online Employment scams can be hard to pin down or notice, particularly if you're searching for work and want to believe any bites from an employer are legitimate. But there are some telltale signs that should set off alarms in your mind. These steps can help you spot fake work opportunities brought to you by scammers: They reach out via text. Unless you know the recruiter, this is suspicious activity. The recruiter requires money up front. No legitimate company will require you to pay to work. If a job asks you to pay a fee or send them money for equipment, it's a scam, even if they say you'll be reimbursed. The compensation is too good to be true. You have an idea of what a job should pay. If the salary is far beyond your own expectations, that's a red flag. The interview is conducted over a messaging service. Many job interviews are done remotely. But they are normally conducted via phone or video conferencing software, such as Zoom or Google Meet. You get an immediate offer. Landing a job should take some time because multiple interviews are often required. Hiring companies will also speak with and vet multiple candidates. If you're still unsure, the FTC recommends researching companies offering you a job to make sure they're legitimate. Also, search for the company name followed by words like "scam" or "review" to see what pops up. If you want to confirm a job opportunity or offer with a legitimate company, cut out the recruiter and reach out to them directly. Can job scams lead to ID theft? Some employment scams exist to steal money from victims, but others may not stop there. Over the job application process, victims might share information that's standard to provide to a new employer, such as their name, birth date, home address and Social Security number. This information can be used by identity thieves to open bank accounts, take out loans or credit cards in your name and even file fraudulent tax returns. As a safety measure, consider freezing your credit with the three major credit bureaus if you fell for a job scam. You should also consider signing up for identity theft protection. These services offer insurance to help pay for necessary expenses if your identity is stolen. How to report employment scams If you come across a fake job offer or employment scam, report it so that others don't fall victim. Here's how: Report the scam to the scam tracker. Report suspected employment fraud to the FTC at Report the fraud to your state attorney general. If you're already the victim of an employment scam, you'll want to take some additional steps to limit damage and protect yourself from identity theft. For example, if you shared sensitive personal information as part of the scam, you can freeze your credit reports or set up fraud alerts on your credit reports. You can also sign up for identity theft protection and monitoring services, which can alert you if someone tries to open an account or apply for a loan in your name. If you already sent money to a scammer, the FTC recommends contacting the company behind the payment method you used (e.g. PayPal, Zelle, a credit card, etc.) to report the fraud and asking them to reverse the transaction. It's unlikely you'll get your money back in most cases, but you won't know unless you ask.
Daily Mail
16-07-2025
- Business
- Daily Mail
Warning by major bank as job scams jump 237% since January - here's what to watch out for
Jobseekers are being warned over too good to be true opportunities in the employment market as scams have more than tripled in six months. Cases of so-called advanced fee job scams have surged by 237 per cent since the beginning of the year, according to Lloyds Banking Group. Tricksters prey on unsuspecting job hunters by posting phoney job adverts or making fake job offers to individuals in need of extra cash. The jobs often involve simple tasks such as liking videos on social media platforms or reviewing hotels - all from the comfort of your own home with little effort required. The crooks lure you in with the promise of high wages or commission, or claim you don't need an interview to be hired. Social media is the origin of most of these scams - some 53 per cent - and an average victim loses £1,420 to these fraudsters, the research reveals. However, some 7 per cent of victims have given away more than £5,000. But how are victims tricked into handing over hundreds or even thousands of pounds of their hard-earned money? Tricksters are preying on unsuspecting job hunters by posting fake job adverts or making fake job offers to individuals in need of extra cash Scammers claim employees must pay upfront fees to process the application, get trained, have a DBS check or even visa sponsorship. Christina Ford, fraud investigator at Lloyds, says sometimes scams aren't even framed as job adverts. Instead, a fake social media profile could rave about an amazing job opportunity they've found - which lures in curious job hunters. 'In my role, I've spoken to a number of customers who have been approached unexpectedly with job offers or they've responded to advertisements promising quick cash or remote working opportunities. 'The roles presented appear simple, such as watching or liking videos or writing fake reviews to boost company ratings. 'Customers are told they will earn a set amount per task and initially receive payments into their accounts. 'However, these payments are often sent by other scam victims who believe they are paying to unlock higher-paying tasks.' The employees may be promised 'VIP' upgrades in the form of tasks which pay more money or commission - but scammers claim payments are needed in order to unlock these higher earning responsibilities. Job hunters could also be lured into making more than one payment with fraudsters claiming they need money for taxes or processing fees. Another trick used by crooks is to claim victims cannot access their commission until a fee has been paid. Victims transfer the money in good faith to the scammers, who then disappear - either ignoring messages from the victim or block them all together. Some scammers even go to extreme lengths to reel in job seekers by arranging fake interviews and contracts, and setting up fake websites of genuine recruitment agencies to con their victims. Some 'employees' are also shown fake screenshots of high bank balances. But these pernicious scams may not always start on social media. You may come across an advert for one of these fake jobs on a website or even be messaged directly via text by a fraudster posing as a recruiter or employer. Victims could even be persuaded to transfer money on behalf of the fraudsters, which makes them a money mule - a criminal offence. Liz Ziegler, fraud prevention director at Lloyds, says: 'These job scams are evolving rapidly, blending digital sophistication with emotional manipulation. 'Fraudsters are taking advantage of genuine job seekers, drawing them in with fake advertisements giving promises of remote work with big payouts and instead leaving them financially and emotionally drained.' She warns no legitimate company will ask you to make payments in their hiring process or ask you to use your own bank account to transfer money on their behalf. If you have any doubt, verify the recruiter or company independently. Report any unsolicited job offers or adverts to Action Fraud.
The Herald
18-06-2025
- The Herald
Former prosecutor in court on corruption and money laundering charges
Siphokazi Magangana, a former district court prosecutor, and Yandisa Yolanda Jam Jam appeared in the Roodepoort magistrate's court on Tuesday to face charges of corruption and money laundering. National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said the charges related to allegations of soliciting money from unsuspecting and vulnerable members of the public desperate for employment. Magangana, previously stationed in the Johannesburg magistrate's court, allegedly duped three people in August 2022 into paying R10,000 each into the bank account belonging to Jam Jam in exchange for securing permanent employment as prosecutors without following due process of being subjected to interviews. 'When this promise was not fulfilled, the three complained in May 2023 to the office for ethics and accountability of the NPA for investigation.' In December 2023, that office recommended the case be referred to the labour relations unit of the NPA for disciplinary action and Magangana be charged with corruption and fraud. Both accused remain in custody and will return to court on Friday for a possible bail hearing. 'The public is warned not to fall prey to false promises as legitimate NPA hiring processes require no payment of any kind,' Mjonondwane said. As a public institution, the NPA followed official and transparent recruitment procedures to fill vacancies which are publicised on the NPA and the department of public service and administration websites, and the NPA social media platforms, Mjonondwane said. TimesLIVE
News.com.au
23-05-2025
- Business
- News.com.au
Fast-growing scam targets WFH job hunters
A scam targeting work-from-home job hunters has been found to cost Australians more than all other scam types combined. The Australian Competition and Consumer Commission (ACCC) has released findings from a taskforce established to tackle job and employment scams – the fastest growing scam type of 2023. Scamwatch reports for the 2024 calendar year, Australians lost $13.7m to job and employment scams, with an average loss of $14,470. This is 5.1 per cent higher than the average loss for all other scam types combined. Job scams – which often come in the form of fraudulent offers of employment designed to encourage victims into giving money, providing personal information, or working for free – often target people seeking additional income, and flexible or work-from-home opportunities. The scams were found to have the greatest impact on people with low incomes, from culturally diverse communities, people living with disabilities and international students. The report found that fraudsters often impersonated reputable recruitment organisations such as Seek, LinkedIn and Adecco. Often, scammers message people with a job offer that includes a high income, working from home and little effort. They then attempt to acquire a victim's personal information or trick them into providing free labour. Another type of job scam is 'money mule' scams, where an innocent victim is recruited to launder money for a criminal organisation. 'The impact of job scams can be devastating and is likely significantly underreported by victims,' ACCC deputy chair Catriona Lowe wrote in the report. 'Many job scam victims report that they have lost their life savings as well as money they have borrowed from family and friends 'In addition to these financial impacts, victims incur additional harm through the loss of personal information leading to an increased likelihood of future scam losses and identity crime. 'The cost of a victim's loss of trust in recruitment processes and loss of confidence in their ability to secure meaningful employment is hard to quantify.' In 2024, 78 per cent of those who provided their age when reporting a job scam were under 44, and 18.8 per cent of job scam victims who lost money self-reported English as their second language compared with 7.7 per cent for other scam types. The National Anti-Scam Centre's Job Scam Fusion Cell brought together government, law enforcement and industry to attempt to combat the growing issue. The taskforce, which ran for six months from September 2024, led to the referral of 836 scammer cryptocurrency wallets to digital currency exchanges for analysis and investigation, leading to blocking and black-listing. Intelligence sharing led to Meta's removal of about 29,000 accounts engaged in job scams in Australian Facebook groups, and 1850 scam enablers such as websites and scam job advertisements were referred for removal.
CNA
14-05-2025
- CNA
Man gets jail, caning for role in selling work passes to foreigners
SINGAPORE: During the COVID-19 pandemic, a man conspired with two others to sell work passes to 18 foreigners who wanted to stay in Singapore but did not intend to work. Sim Kian Boon Terence, 36, pleaded guilty on Tuesday (May 13) to six counts under the Employment of Foreign Manpower Act, with another 12 similar charges considered for sentencing. He was sentenced to two years in prison, two strokes of the cane and a S$32,000 (US$25,000) penalty. He will serve two months' jail in lieu of the penalty, as his lawyer said he was not in a position to pay. The ruse involved setting up shell companies and using the companies' foreign worker quotas for foreigners who wanted to stay in Singapore without actually working. The shell companies submitted work pass applications, but in reality, they did not need any foreign workers as they were not operational. Sim perpetrated the scheme together with Leong Kwai Tong and Tan Tai Ji in 2021. Tan's role was to find interested foreigners, while Leong's was to handle administrative matters, like submitting the work pass applications and creating documents to further the ruse. Leong recruited Sim to be a director in name for the shell companies in the third quarter of 2019. For his role, Sim was paid a total of S$18,000, or S$1,800 a month for 10 months. Sim provided his Singpass login details and set up his Singpass one-time password to be sent to Leong's phone, so Leong could use it for the shell companies and work pass applications. In this way, he abetted by conspiring to obtain the work passes for 18 foreigners under four shell companies: Cosa Engineering, JT Metal Engineer, Productivity System Engineering and Productivity System Production. Once the Ministry of Manpower (MOM) approved the work pass applications, the foreigners were allowed to enter and live in Singapore. They were left to their own devices for the duration of the work passes, and Sim had no knowledge of their whereabouts as they were not actually employed by him. Sim also let Leong sign on his behalf the fake documents related to the work pass applications, including employment contracts and salary slips. The scheme also involved WeChat groups created to connect Sim with the foreigners, and meetings they attended that were held by Leong and Tan, to familiarise them with the office environment and type of business the shell companies supposedly conducted. The main purpose of these was to brief Sim and the foreigners on how to respond if MOM started investigations. Fake documents, such as brochures about what the companies supposedly sold, were also given to them to perpetuate the deception. MOM started investigations in November 2021 after receiving information about possible breaches of the law. MOM prosecutor Jasmine Koh highlighted that these were syndicated offences, and said the harm to society was high as they happened during a time of heightened border security measures. Defence lawyer Riko Isaac said Sim got involved in the ruse out of financial desperation during the pandemic, and gave in to the allure of "fast or easy money". He said his client was remorseful and had cooperated with MOM throughout the investigations. It is an offence to obtain a work pass for a foreign employee for a business that does not exist, is not in operation, does not require the employment of the foreign employee, or fails to employ them. The punishment for this offence is a jail term between six months and two years, and a fine of up to S$6,000.
