As the unemployment rate rises, so does the threat of scams targeting job-seekers.
The BBB advises job-hunters to beware of three prevalent job scams:
Job offers that require an upfront fee
Recently, ads cropped up in Florida from a company claiming it would hire 2,500 employees for its new headquarters. Applicants had to submit $24 to pay for a background check. Law enforcement later found out that the money only went to the pockets of the company’s owner. Similar schemes crop up across the country.
BBB advice: Never pay money upfront to be considered for a job. If a potential employer asks you to cover the costs of testing, training or background checks, consider it a red flag.
Job-placement assistance that makes big promises but can’t deliver
Job-placement companies — or headhunter firms — are paid by companies that need help filling positions. Some job-placement companies, however, take money from job-hunters and don’t fulfill promises of quick employment.
The BBB of Greater Maryland recently warned job-hunters about a placement firm advertising on Craigslist that charged as much as $195 and guaranteed job-seekers would find jobs. Unfortunately, job-hunters didn’t receive call backs or refunds and had no way to contact the company.
BBB Advice: Always research a job-placement company first with your BBB before signing contracts or paying money. Be cautious about paying upfront fees and know how to get a refund.
Phishing attempts by ID thieves pretending to be real businesses
Spam e-mail offering job opportunities often direct consumers to Web sites designed to install malware on computers or solicit bank account and/or Social Security numbers. You might be asked to submit a resume, find out you’ve been “hired” and asked for financial account numbers.
BBB Advice: Check out an employer — even if the company is well known — before responding to unsolicited e-mails. Legitimate employers will need Social Security numbers for tax purposes and may need a bank account number to electronically deposit paychecks.
Start With Trust. For more advice on avoiding scams and fraud visit wynco.bbb.org or call 970-484-1348 or 800-564-0371 for reliable consumer tips and information.