Job Scams: How to Spot Them and What to Do If You’ve Been Scammed

In today’s digital job market, job seekers are constantly on the lookout for new opportunities, often relying on online listings to find promising positions. Unfortunately, this online accessibility has also made it easier for scammers to target job seekers, especially through convincing but fake job listings. 

The surge in job listing scams has created a new challenge for many, putting their personal information and finances at risk.

In this article, we'll explore what scam jobs are, the most common examples, how to tell if a job is a scam, and tips on how to protect yourself while searching for jobs online. 

By understanding these scams and staying alert, you can secure your personal information and focus on genuine career opportunities.

What are job scams?

A job scam is a fraudulent scheme where scammers create fake job listings or contact job seekers under the guise of a legitimate employer. The goal is to trick applicants into providing sensitive information (like Social Security numbers, and banking information) or sending money under the pretense of employment fees, background checks, or equipment costs. 

In other cases, scammers may use job listings to steal personal information that can be exploited for identity theft. “It’s becoming increasingly more difficult to spot when listings are in fact fake because AI can make them look very real and eliminate some of the old giveaways like spelling and formatting errors,” says Edward Tian, CEO of AI detector GPTZero.

Unlike other types of fraud, job scams can be especially distressing because they often target people during vulnerable times, like when they’re unemployed or looking to make a career move. The impact of job scams isn’t only financial; it can also lead to significant emotional distress and a lack of trust in the job market.

Common types of job scams

Scammers use various tactics to make their job offer scam appear legitimate. Here are some of the most common job scams to be aware of.

Remote job scams

Since remote work became popular, scammers have taken advantage of it by posting work-from-home job scams that require little experience. These online job scams often sound too good to be true, promising high pay for minimal work. Many of these fake listings lure people in with the promise of easy money, only to ask for banking information or payment for “training.”

Check cashing or money transfer jobs

In this scam, the “employer” asks job seekers to cash a check, keep a small portion as “pay,” and wire the rest to another account. The job scam checks later bounce, leaving the victim responsible for the entire amount, while the scammers make off with the money.

Upfront payment scams

Some scammers require applicants to pay for things like job training, equipment, background checks, or administrative fees. Legitimate employers almost never require payment from potential employees, so this is a major red flag.

We’ll say it again in case you were skimming just now: Legitimate employers almost never require payment from potential employees.

Phishing jobs

These phone or whatsapp job scams trick job seekers into sharing sensitive information (Social Security number, bank details, etc.) under the guise of necessary employment documentation. This information is then used for identity theft or sold on the black market. 

Recruitment agency scams

How do you tell if a recruiter is scamming you? Scammers posing as recruitment agents promise guaranteed placements but require an upfront fee. Genuine recruitment agencies are paid by companies, not job seekers, so this is another major warning sign of job recruiter scams.

Data entry or survey job scams

Often advertised on social media, these internet job scams promise high pay for easy tasks like data entry or taking surveys. These job application scams may request a registration fee or your bank information, which can lead to unauthorized withdrawals.

Learning about the different types and the key indicators below would help you know how to find out if a job is a scam.

How to know if a job is a scam

So, what are signs of a potential job scam? Here are key indicators that a job listing or offer may not be legitimate:

• The pay seems unusually high. If the salary or hourly rate is much higher than expected for the job type, be cautious. Scammers know high pay is enticing and use it to lure people in.

• Vague job descriptions. Job listing scams are the ones that lack specific responsibilities, qualifications, or day-to-day details are often scams. A legitimate job will outline what’s expected of the employee.

• They ask for personal or financial information early. Legitimate employers do not ask for sensitive information until after an offer is made and accepted. Requests for Social Security numbers, bank accounts, or driver’s license information are red flags.

• Email address or contact information is unprofessional. How to know if a company is legit? Real companies typically use official company domains for email (e.g., @companyname.com). If you’re contacted from a generic email address (e.g., @gmail.com or @yahoo.com), it may be a scam.

• Payment requirements. Be wary of any job that requires you to pay for training, software, or equipment. Reputable companies cover these expenses for their employees.

• The job listing lacks an online presence or has negative reviews. Look up the company of the job offer scams and see if it has an established online presence. 

“Normal hiring takes time, and quick job offers without interviews spell trouble,” says Vivian Au, hiring specialist and founder of Air Corporate. “Genuine employers never pressure you to start immediately or download unknown software.”

What to do if you've been scammed?

If you realize you’ve fallen victim to a job scam, don’t panic; there are steps you can take to minimize the damage:

1. Stop all communication with the scammer to avoid further compromise.

2. If you have provided financial information, alert your bank and watch your account closely for unauthorized activity.

3. Learn how to report job scams: File a report with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov and with the FBI’s Internet Crime Complaint Center (IC3). You should also report the scam to the job board where you found the listing.

4. If you have shared personal details, change passwords for sensitive accounts and enable two-factor authentication where possible.

5. If identity theft is a concern, you may want to place a credit freeze with the major credit bureaus to prevent new accounts from being opened in your name.

Tips for finding legitimate job listings

For those wondering, “How do I make sure my job is not a scam?” staying vigilant is often the key. Here are some tips to help you identify trustworthy opportunities:

Use reputable job boards

You can rely on FairyGodBoss to find a reputable job. Also, platforms like LinkedIn put effort into filtering out scams, but it’s still a good idea to verify any listings independently.

Research the company thoroughly 

A quick internet search of the company’s name, along with “scam” or “fraud,” can help uncover red flags. Look for a professional website, active social media, and positive employee reviews.

Network with people in the industry

Professional connections can be valuable resources when it comes to finding reputable job leads and avoiding scams.

Verify the contact’s information

If you’re contacted about a job, cross-check the recruiter’s information with the company’s official contact directory.

Stay cautious with remote positions

While many remote jobs are legitimate, they’re also a favorite for scammers. Apply extra scrutiny to remote listings and avoid offers that seem too good to be true.

Bonus tips for safe job searching

How can you prevent being scammed when looking for a job? Adopting safe job-seeking practices can further protect you:

• Enable privacy settings on job boards to limit who can see your contact information.

• Avoid sharing your address or personal information on public job profiles.

• Consider working with certified recruiters or companies that have a verified reputation in your industry.

“Remember this rule: Real jobs pay you, you never pay them,” Au says. “Trust your instincts. If something feels wrong about a job offer, step back and double-check everything. Your financial safety matters more than any job opportunity.”

FAQs

Can I trust online job boards?

Reputable job boards such as FairyGodBoss make efforts to remove scams, but none are completely foolproof. Always verify listings independently and avoid jobs that seem too good to be true.

Do LinkedIn job scams exist?

Yes, they do. Despite LinkedIn’s efforts to maintain a professional environment, scammers can still infiltrate the platform, posting job scams on Linkedin or impersonating recruiters to target job seekers. 

How to verify if a job is real?

To verify if a job is real, start by researching the company’s name, checking its official website, and reviewing its online presence on professional sites like FairyGodBoss. Look for a professional email domain (such as @companyname.com) rather than a generic one (like @gmail.com). 

How to tell if a job posting is a ghost job?

A ghost job posting is often a position that doesn’t currently have an open role but remains on job boards for various reasons (like building a candidate pool). Clues that a job might be a ghost job include vague job descriptions, no clear application deadline, and the role staying posted for an unusually long time without updates. 

How to verify a job letter?

To verify a job letter, start by confirming the sender’s contact details and checking the letter for signs of professionalism (like official letterhead, company address, and correct grammar). Contact the company directly through their official channels (not the contact information provided on the letter) to verify that the letter is legitimate. Ensure the content aligns with what you discussed during the application process. Any requests for personal information or payment are red flags.