How to Avoid Job Scams
As the financial and housing crises continue to worsen more people across all business sectors are losing their jobs. During times of economic turmoil and despair the numbers of job and business-opportunity scams proliferate like mosquitoes after a summer rain storm. These job scams often focus on individuals down on their luck looking for any opportunity to make money. The Federal Trade Commission and the consumer protection agency recorded nearly six thousand complaints in 2007 against phony work-at-home or job recruitment schemes. As frustration continues to mount this number is increasing.
How do these job scams operate? Many different fraudulent schemes exist. Some require up front payment to receive business-opportunity information. Unfortunately victims only receive vague instructions about how to sell common products on the internet. Other scams called "phishing" use fake email or web sites from non-existent employers to gather sensitive personal information to be used later in money laundering or identity theft programs.
Law enforcement agencies nationwide have arrested individuals who illegally posed as job recruiters. These recruiters collected job applications from hopeful clients including social security numbers, birth dates as well as a cash processing fee (supposedly for background checks). Unfortunately, the promised job referrals were never provided.
Bogus executive search firms have even taken advantage of desperate upper level managers and executives by demanding large cash fees up front just to circulate their resumes nationally. The duplicitous firms merely post these resumes on generic public boards and forums and move on.
Is there any way to protect yourself against this type of scam? Be aware that legitimate job search firms are always paid by the company or employer. Notify the Better Business Bureau about any job placement firm that demands an up front fee.
A newer job scam involves cashing checks or reshipping electronic gadgets supplied by parcel post. The recipient is supposed to keep a portion of the funds and return the rest to the sender. Unfortunately according to the U.S. Postal Service most of the checks are counterfeit and the merchandise stolen. So those involved have not only lost their money but they may be an accessory to a crime. Other similar jobs popular with overseas criminals involve receiving and cashing money orders or checks through Western Union and MoneyGram. These rackets are nothing more than fronts for money-laundering organizations.
Another type of scam to be aware of are own-your-own business scams. Own-your-own-business schemes are continuing to grow. The typical example is a multi-level marketing or pyramid scheme promising sizeable wealth for minimal investment of time and money. The FTC emphasizes that if your commissions are based on recruiting others and not on selling services or products then the venture is illegal. The bottom line? If it sounds too good to be true than it's probably illegal or at least shady.
How can you protect yourself from these and other employment scams? Common sense is paramount. Do not provide any confidential information such as a social security number until you have a genuine job offer. Research and check the authenticity of any perspective employer. Do not pay a penny up front to a search or recruitment firm. See if any complaints have been filed against them with the BBB or FTC before getting involved.