Scammers Innovating Job Fraud Amid Struggling Employment Landscape
Initially, prospective job applicants found nothing amiss. One individual discovered a job listing on ZipRecruiter for a role at J.P. Morgan, while another submitted an application on LinkedIn for a vice president of marketing position at a tech startup. A third received an email from a recruiter regarding a senior role at an outdoor apparel company.
However, unbeknownst to them, no legitimate employers lay behind these postings. Instead, they were the creations of increasingly sophisticated scammers who are employing elaborate tactics to ensnare job seekers in various financial traps, exploiting an environment where many Americans are grappling with unemployment.
This burgeoning wave of scams transcends the poorly articulated messages that proliferated during the pandemic. Now, con artists are disseminating listings that are virtually indistinguishable from authentic opportunities.
Some appear on reputable sites such as LinkedIn or ZipRecruiter, while others originate from spoofed or compromised email addresses purportedly belonging to recruiters.
Insights gleaned from interviews with over twenty job seekers, cybersecurity experts, and executives from hiring platforms expose the vulnerability of even the most educated and tech-savvy applicants.
“These frauds appear incredibly legitimate, rendering it nearly impossible for job seekers to discern the ruse,” remarked Eva Velasquez, CEO of the Identity Theft Resource Center, a nonprofit organization dedicated to assisting victims of identity theft.
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Often, phony job postings aim to elicit sensitive personal information from applicants, such as Social Security numbers for verification purposes or bank account details for direct deposits.
Other nefarious schemes entice victims into clicking on links for purported Zoom interviews, only to unwittingly download malware.
In a prevalent scam, a fictitious employer offers a role and instructs the individual to procure expensive equipment for remote work, promising reimbursement.
The faux company issues a check—often exceeding the equipment’s cost—prompting the employee to return the surplus via PayPal or Zelle before the counterfeit check bounces.
In the first half of the year, online job scams surged by 19% compared to the previous year, causing Americans nearly $300 million in losses, with the average victim sustaining a loss around $2,000, according to data from the Federal Trade Commission.
“This is especially concerning as many individuals are actively seeking employment or additional income,” commented Kathleen Daffan, an attorney with the Federal Trade Commission.
Determining the identities behind these scams presents a formidable challenge since perpetrators conceal themselves through fake emails, telephone numbers, and IP addresses.
Cybersecurity experts suspect that many of these schemes originate from criminal organizations in Southeast Asia, which have been implicated in other notorious frauds, such as romance scams on dating applications.
“It’s a classic case of social engineering,” noted Selena Larson, a senior threat intelligence analyst with cybersecurity firm Proofpoint. “The tactics target individuals’ emotions and vulnerabilities to incite risky decisions.”
A recent report by Reuters revealed that North Korean hackers are masquerading as recruiters, utilizing platforms like LinkedIn and Telegram to solicit job seekers for blockchain-related positions.
Dave Pedersen, who had been job hunting for nearly two years, received an email last fall from an individual claiming to be a recruiter for the outdoor clothing brand Arc’teryx. The message inquired if he was interested in a head of communications position.
With two decades of experience in communications for technology firms, he perceived it as an ideal opportunity. After a written interview, he believed he had made a positive impression.
Yet, as the process unfolded, his suspicions mounted. During a phone interview, the supposed executive asked irrelevant questions. Upon reviewing the original email, he noted a discrepancy in the address compared to the company’s official domain.
Reaching out to the genuine recruiter he found on LinkedIn revealed that multiple individuals had inquired about the scam that same day.
“I have a background in cybersecurity and fraud prevention. I thought I would never be scammed,” Pedersen recounted, having severed contact before any financial loss occurred.
“If someone with my experience encounters this issue, I can only imagine the plight of those less informed.”
The escalating sophistication of job scams coincides with a rise in the number of individuals long-term unemployed, now at its highest level since 2022, with nearly 2 million people in the U.S. classified as such.
Simultaneously, hiring has reached a near standstill, with average monthly job additions dwindling to just 29,000 over the summer, as per government statistics. For those few jobs available, applicants contend with algorithms designed to sift through the overwhelming influx of résumés.
Even in instances where scammers do not successfully extract funds, Velasquez from the Identity Theft Resource Center expressed concern regarding the substantial amount of data contained within a résumé or written interview, which can pose further risks.
“Your personal information can often be as valuable, if not more so, than minor monetary amounts, as it can be exploited for diverse purposes over time,” she explained.
When Andrea Maestas applied last month for an administrative assistant position she found on ZipRecruiter for J.P. Morgan in Colorado, she received an email that appeared official, indicating the company’s interest.
However, it requested her credit score be on file. Clicking the provided links prompted her computer to issue warnings about their safety. Subsequently, she reported the incident to ZipRecruiter, which confirmed it was a scam and deactivated the account.
Although she never divulged any financial details, Maestas remains apprehensive that clicking the links may have compromised her security. The scammers, she asserted, prey on “the desperation or fear” job seekers naturally experience.
ZipRecruiter employs an internal mechanism to identify job scams and removes postings that breach its terms of use, stated spokesperson Claire Walsh.
Timothy Brown recounted being blindsided by a scam on a platform he trusted—LinkedIn. He felt elated upon spotting a vice president of marketing role at a cryptocurrency technology firm last month. After applying through LinkedIn, he was delighted to receive a text from a recruiter later that day.
“You think, fantastic, finally someone is interested in me,” shared Brown, who had left his previous position in July. “Faced with the dismal job market, it’s invigorating when someone connects with you on a personal level.”
However, what started as a promising employment lead devolved into a series of strange interactions involving invasive inquiries into his finances, compounded by flirtatious emojis from a supposed recruiter named Anna. Brown ultimately grew wary and ceased communication.
His instincts proved correct; a representative from the company, imToken, informed NBC News that no job posting had been made on LinkedIn, nor had they reached out to Brown, confirming that “Anna” was not an employee.
Source link: Nbcnews.com.
