If You're Out of Work, Don't Fall for a Phony Job Offer
The rise in layoffs has created fertile ground for employment-related scams.


Reports of job-related scams to the Better Business Bureau more than doubled in 2023 from a year earlier, according to data from the organization’s Scam Tracker, an online tool that allows consumers and businesses to report fraud and fraud attempts. Meanwhile, the Federal Trade Commission logged reports of more than 107,000 fraudulent business and job opportunities in 2023, with losses of about $491 million.
Job-related scams
Fraudsters are using artificial intelligence and social media to target people who are looking for work, and their tactics are increasingly sophisticated. Many of the schemes offer “work from home” opportunities, an old scam that has taken on new life now that more people than ever work remotely. Some scammers go so far as conducting fake 45-minute interviews, according to the FTC.
The perpetrators profit by eliciting personal information that can be used to commit identity theft or by asking victims for up-front payments. Both are red flags, the FTC says.

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- If a recruiter asks for your Social Security or bank account number before providing details about the position, the job offer is a scam.
- If you are not sure whether an advertised position is legitimate, contact the company through a website or phone number you know is legitimate, not the link that the questionable recruiter provided.
Top 10 riskiest scams
For its annual ranking of riskiest scams, the BBB evaluates them based on three factors: the volume of reports it received, the percentage of reports that involved monetary losses and the amount of monetary losses reported.
As in the past, investment swindles, including those involving cryptocurrency, topped the BBB’s ranking of riskiest scams, with victims reporting median losses of $3,800 in 2023. Victims were often urged to buy, trade or store digital assets in fraudulent exchanges, the BBB says.
For the first time, social media was the most common method perpetrators used to contact victims who reported a monetary loss. Social media was often used to perpetrate romance scams, with median losses rising more than 150% since 2022. Fraudsters typically hijack photos and information from real people to create fake profiles on online dating sites, which are then used to build relationships with their targets. Some persuade victims to invest in cryptocurrency; others request cash for fictional emergencies.
In 2022, nearly 70,000 people reported to the FTC that they lost money to romance scams, with losses totaling $1.3 billion. Regulators say actual losses are likely much larger because many victims are reluctant to acknowledge that they’ve fallen for a romance hoax.
BBB riskiest scams
1. Investment/cryptocurrency
2. Employment
3. Online purchase
4 . Home improvement
5. Romance
6. Advance fee loan
7. Phishing/social engineering
8. Credit repair/debt relief
9. Tech support
10. Travel/vacation/timeshare
The Better Business Bureau calculates a risk index for scams based on the volume of reports it receives, the percentage of reports that led to monetary losses, and the amount of monetary losses.
Other popular scams
Credit-repair and debt-relief scams made the top 10 list for the first time since the BBB launched its Scam Tracker tool in 2016. In a typical scam, victims are told they must pay an up-front fee for a variety of services, including removing negative items from their credit reports or negotiating with credit card companies to eliminate debt.
A request for an up-front fee before services are provided is a big red flag, the Consumer Financial Protection Bureau says. Likewise, the CFPB says any business that claims it can remove accurate information on your credit report is fraudulent. Legitimate credit counselors can help you improve your credit, but they won’t promise to wipe away credit report blemishes that are supposed to be there.
Loan-forgiveness scams are also on the rise, as outlaws target individuals who are struggling to pay their debts. In March, the FTC sent $1.4 million in refunds to more than more than 27,000 student loan borrowers who paid hundreds of thousands of dollars in illegal up-front fees to a bogus outfit that promised to lower their monthly loan payments.
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Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.
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