Job scams are among the riskiest. Here's how to avoid them

Employment-related scams ranked as the No. 2 riskiest scam – as people are more likely to lose money – based on a 2023 report by the Better Business Bureau. Investment and cryptocurrency scams ranked No. 1. The risk index considers the prevalence of the type of scam, the likelihood of losing money, and the reported monetary losses.

Reports to the BBB Scam Tracker about employment scams jumped by 54% in 2023 from the previous year. The median loss reported by consumers was $1,995 last year. That's up from $1,500 in 2022.

Job scams trigger the biggest risk for those in the 18-to-44-year-old age group, according to the report.

The risks include losing personal information on a fake job application, as well as losing money to scammers for “training” or “equipment.” The BBB noted that victims also can be “overpaid” with a fake check and asked to wire back the difference.

Here are big red flags of job scams:

Fake job postings: Scammers post all sorts of jobs online, including paid internships, research projects, and even pet sitting. Social media, as well as online job marketplaces, are hot spots for job scams. But you might also hear about such jobs via text message or email. So, it's key to step back and search the job or employer's name and the word “scam” online. You might save time and money by spotting other reports involving job scams early on.

Sometimes, you'll discover that this cannot-miss job opportunity isn't listed on the company's legitimate website.

Bogus checks: Great, you got an interview, even if it was one on a messaging app, and now you've been offered the job. All good, until your new employer absolutely must send you a check upfront to cover the cost of buying a laptop, an iPhone, or other supplies you need to do this job. Don't even think twice – don't cash it.

Sure, you might be able to quickly deposit the check via your bank's mobile app, and the bank might make some money available soon. Here's the catch: The money is available, but it can take several days for the check to clear.

The fake check will be discovered further down the line. And the person who desperately needs a paycheck will be stuck paying the bill.

"When the bank discovers that the check is no good, it takes money from the victim’s bank account to cover the loss," according to a comprehensive jobs scam study released by the Better Business Bureau in 2021.

The recruiter is rushing you: Any time you feel rushed, run in the opposite direction. Most scams, including job scams, involve getting consumers to move so quickly that they cannot think things through, do a little research, or talk over what's happening with a friend or family member. You want to have time to do your homework.

Send us money: Scammers get their money in a variety of ways, including money orders, cash and bitcoin.

I spoke with a 27-year-old woman who lost $500 in a job scam two years ago after depositing a bogus check in the bank and then feeding five Benjamins into a bitcoin ATM at a liquor store in Lake Orion. The reason scammers gave her for sending the money: The new employer needed to confirm that she lived in the area before sending her a laptop to do her job. And somehow, going to a bitcoin ATM in the area would confirm it.

The job opening just showed up one day in her email. The main job interview was done via a RingCentral messaging app over roughly three hours. And the job paid $45 an hour.

The demands for her to keep sending more money continued. After all, the so-called new employer had sent her a $6,548 check via Federal Express. Sure, it was a fake check, but the scammers were hoping to keep getting cash before the victim found out.

The young woman became suspicious nearly immediately after sending that first $500 via the bitcoin ATM. The money was gone, but she was thankful that she did not send more money.

A St. Louis woman, according to a BBB report, lost $4,800 to a job scam after she posted her resume on Indeed.com. She was contacted by phone and text message about a job at Intuit. She interviewed for the job on Zoom, and the next day was told she was hired. The remote work paid $24 an hour. She provided her bank account information so that her pay could be deposited into her account.

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She was sent a check for $2,400 to cover work equipment before she started working.

The result: The crooks talked her into buying $2,400 in gift cards at Home Depot to cover the work equipment she'd need to buy from a vendor. She scratched off the numbers on the back and sent them by text message to the scammers. The BBB report noted the crooks took another $2,400 from her account. The woman was unable to pay her rent.

In some scams, con artists will just ask for money. "When you are asked to pay upfront, you are promised reimbursement with your first paycheck. The scammers now have your money and possibly bank information. You will not receive a paycheck," according to a warning about employment scams from the Michigan Attorney General.

Do not give bank account information: Some scammers say they need your bank account number right now so that they can directly deposit your check. Crooks can use that information to hack your bank account. An employer doesn't need your credit card number, either.

Asked to send a package: Earlier in 2024, the BBB Serving Eastern Michigan and the Upper Peninsula warned of a job scam where workers would "inspect, re-label or forward packages." Many complained to the BBB, as well as posting complaints on Reddit. They said they never got paid for work that they supposedly were hired to do for a company calling itself Connect Shipping.

According to information provided by consumers, the BBB said, "in addition to forwarding packages, some consumers were asked to use their credit card to purchase items to be shipped to others."

Reshipping jobs are huge scams. Sometimes you're even engaging in shipping stolen goods.

Where to report scams: You can report job scams and other scams to the Federal Trade Commission at ReportFraud.ftc.gov or the Better Business Bureau at BBB.org/ScamTracker. You also can report job scams to the FBI Internet Crime Complaint Center at www.ic3.gov.

This article originally appeared on USA TODAY: How to avoid job scams