The number of job scams increased by 118% in 2023, thanks to AI. Here's how to avoid falling victim.
- The number of job scams increased by 118% in 2023 compared to 2022, as per the Identity Theft Resource Center.
- Job seekers should be cautious of fake job ads and recruiters who ask for personal and financial information.
- The growth in employment scams can be attributed to advancements in artificial intelligence and the increasing prevalence of remote work, according to experts.
Last year, there was a rise in employment scams, with criminals using artificial intelligence to swindle money and personal information from job seekers, according to experts.
The number of consumer reports of job scams increased by 118% in 2023 compared to the previous year, as stated in a recent report by the Identity Theft Resource Center.
Job seekers are often targeted by thieves who pose as recruiters and create fake job postings to lure applicants, only to steal valuable information during the "interview" process.
It is challenging to distinguish reality from falsehoods when these phony job postings are frequently placed on trustworthy websites like LinkedIn and other job search platforms, according to ITRC.
The typical victim loses about $2,000
The risk of revealing financial account details or personal sensitive information, such as a Social Security number, to criminals who can use it to steal a job seeker's identity, is a significant threat.
In 2022, job and business opportunity scams resulted in consumers losing $367 million, which is a 76% increase compared to the previous year, as reported by the Federal Trade Commission.
The FTC stated that the typical victim lost a significant amount of $2,000.
While Google Voice scams are the most common type of identity scams, job scams only accounted for 9% of all scams in 2023, according to the ITRC. These scams typically involve tricking people into sharing personal information or payment details in exchange for job opportunities.
ITRC president and CEO Eva Velasquez stated that employment scams are a growing concern.
"Velasquez stated that job scams have existed since the inception of jobs, and they will persist due to several external factors."
AI and remote work fuel job-scam growth
Experts stated that AI advancements enable scammers to create job listings and recruitment messages that appear more authentic.
The ITRC report states that AI tools can improve the credibility of a "pitch" by adjusting for cultural and grammatical differences in language usage.
The pandemic has made workers and job seekers more comfortable with digital-only transactions, Velasquez stated.
A supposed recruiter may only interact with job seekers via text or WhatsApp message during a phony hiring or interview process, which is a "big red flag," Velasquez said.
Immigrants, college graduates, and other newcomers to the U.S. workforce might consider digital-only hiring standard, particularly for remote positions, she stated. However, she pointed out that this is not typically how hiring operates.
How job scams can rip you off
The FTC warned that con artists may try to "coerce you into giving them money" during the job application process.
According to the federal agency, they may send an invoice for advance payment of on-the-job equipment (like a computer) or job training, but they promise to reimburse you, but won't.
The FTC warned that scammers may request personal information, such as a driver's license, Social Security number, or bank account details, in order to complete "employment paperwork."
The next interview could be won or lost based on job skills. A five-day return to the office is unlikely. The job market is still strong but has become competitive.
In a consumer alert this year, New York Secretary of State Robert Rodriguez stated that scammers will deceive you with promises of a fantastic job, but actually, they are after your money and personal information.
Velasquez advised that job seekers should not provide personal information until after receiving and accepting a job offer, as it may not guarantee safety in all cases.
How to protect yourself from job scams
According to the FTC, detecting job opportunity scams is not foolproof.
According to Velasquez and the FTC, here's what you should know and how you can better protect yourself.
- Don't have a false sense of security on well-known job search platforms.
- Before accepting a job offer, it's important to independently verify the company's existence and hiring status.
- If you haven't contacted a prospective employer or recruiter, you can still connect with the company by using verified contact information.
- During the application process, only limited personal information is typically required, such as name, phone number, job and education history, and possibly email and home address, as stated by Velasquez.
- While digital-only interactions are a red flag, phone calls are not a guarantee of security either.
- Employers who are truthful will not issue you a check to purchase supplies and later request that you return any remaining funds. This is a fraudulent check scheme.
- Be cautious of job ads that promise high salaries and minimal work requirements, as they may be too good to be true.
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