Monday, December 23, 2024

How to Avoid Job Scams (Updated)

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When we started Remotive back in 2014, we almost never encountered job scams. And when we did, they were usually pretty easy to spot.

As remote work grew, unfortunately, so did job scams. And they have become increasingly sophisticated. They are very difficult to differentiate from real job opportunities, even for our team with our 10 years of experience.

The job search can be challenging enough without falling prey to online scammers. It’s important to stay vigilant. And when in doubt… don’t apply!

Here’s how to avoid job scams, including a newer threat you should know about: pig butchering scams.

What Are Pig Butchering Scams?

Pig butchering scams are a type of elaborate fraud where scammers invest time building trust with victims before convincing them to invest in fraudulent schemes, typically involving cryptocurrencies. The term “pig butchering” comes from the analogy of fattening up a pig before slaughter, as the scammers first “fatten up” their targets by gaining their confidence over weeks or months before “butchering” them by draining their finances.

Linked initially to cryptocurrency fraud, these scams are now infiltrating the remote job world, unfortunately.

Here’s how it typically unfolds:

Gaining Trust

Scammers often start with friendly, casual conversations, sometimes pretending they found your contact through a job board or a referral. They build trust over time, posing as legitimate recruiters or companies with attractive job offers. Often, they use professional-looking profiles or company pages to appear credible.

Introducing the Job Offer

Once trust is established, the scammer will offer a remote job that seems almost too good to be true, promising high salaries, flexible hours, and enticing benefits. As part of the onboarding process, they might introduce a request for “training” fees or ask you to purchase equipment with the promise of reimbursement—these are red flags.

Collecting Payment

After convincing the victim to pay for fake onboarding fees or equipment upfront, the scammers collect the funds through untraceable payment methods like wire transfers or cryptocurrencies. They may also ask for sensitive personal information under the guise of payroll setup, opening the door to identity theft.

Disappearing Act

After securing the money or sensitive information, the scammer disappears. They deactivate their accounts or stop responding, leaving victims with no job, money, or way to trace them.


Some scammers even create fake company websites or use real company names to make their offers seem legitimate, further complicating the victim’s ability to spot the fraud. Victims have reported losing thousands of dollars and sensitive personal information through these schemes.

According to the FBI, losses from crypto scams, including pig butchering, reached $5.6 billion in 2023.

If you want to know more about pig butchering scams, this segment of Last Week with John Oliver is very informative and, to be honest, scary and disturbing.


Why You Should Be Concerned

We’ve received reports from our community about such scams, with scammers posing as hiring managers and even sending fake offer letters. We’ve also received reports of scammers posing as “Remotive recruiters” in text messages and emails.

Be cautious if a job sounds too good to be true or requires upfront payment.

Staying informed and questioning unusual requests will help protect you from falling into these elaborate traps.


Common Remote Job Scams & Red Flags

Research the Employer

Always look up the name of the company or person who’s hiring you, plus the words “scam,” “review,” or “complaint.” Legitimate companies will have a strong online presence and verifiable references. If you can’t find any reliable information, proceed with caution.

Check for Legitimate Websites

A professional, well-designed website is often a good indicator of legitimacy. Double-check the domain (look out for suspicious-looking URLs) and verify if the company has a solid reputation online through reviews or testimonials. Scammers often use fake websites or mimic real ones with minor changes.

Don’t Pay to Get a Job

No legitimate employer will ever ask you to pay for a job, whether for “training fees,” “placement fees,” or any other upfront cost. If you’re asked to transfer funds or provide financial details upfront, it’s a major red flag. Applicants are sometimes asked to pay fees via services like Western Union or buy gift cards—steer clear of these!

Guard Your Personal Information

Never give out personal information, such as your passport number, social security number, or bank account information, before securing a legitimate job. Scammers might use these details for identity theft or to gain access to your financials.

Beware of Too-Good-to-Be-True Jobs

If a job offer seems unrealistically high-paying or promises “instant success,” it’s likely a scam. Always trust your instincts. If it sounds too good to be true, it probably is.


Real-World Examples from Remotive Users

Example 1

Monique reported a scam attempt involving a job listing that we removed within 10 minutes. Unfortunately, the job seeker contacted the company before realizing it was a scam. The scammer impersonated a real recruiter named Greg from a legitimate-looking company— a common tactic that makes these scams hard to detect. Always verify the authenticity of job offers and report any suspicious listings to us immediately.

This is how the conversation via text went:

Example 2

Dawn applied for a Virtual Assistant job and received the following text message on her mobile:

She then had an interview with the recruiter via Skype.

This is what she told us via email after that call:

The portal to the application requires minimal information and is not hosted on the RestorMedicine site.  Formstack is a site that anyone can use to create a form. Not a huge red flag, but when combined with everything else it seemed strange.

The interviewer first contacted me via a text message on my phone. Again, strange (I attached a screenshot of the text message).

The interviewer wanted to do an interview over Skype or Teams via chat. Also strange.

I sent my Skype email address and was contacted by someone who introduced herself as both the “doctor” and one of the “recruiting staff”. I felt they were copy/pasting a script and would take anywhere from a few seconds to 10 minutes to respond to my answers. I avoided giving them any personal or identifiable information. Though they often had long pauses, they were insistent I respond quickly.

Thanks to Dawn’s quick reporting, we promptly took down the job. The website and recruiter, with real-looking Instagram and LinkedIn profiles, appeared highly credible. It seems this was a sophisticated scam, either impersonating real individuals or creating detailed fake personas to carry it out.

Example 3

We also received this email from journalist TC Newman:

TC then shared with us the screenshots of the conversation:

Example 4

We’ve found warnings on many companies’ pages as job scams are increasingly more common. Here’s an example:


By staying informed and cautious, you can avoid becoming a victim of these increasingly sophisticated scams. Remember to follow these tips and always trust your instincts when something feels off.

We never contact job seekers for job offers or are involved in the recruitment process for any jobs listed on Remotive.com or the Accelerator platform. If you are contacted by someone posing as a Remotive team member, please let us know as soon as possible, and don’t engage with the scammer anymore.

For more information or to report a suspicious listing, contact the Remotive team. We’re here to help!


Global Resources for Reporting Job Scams: A Comprehensive Guide by Region

Reporting job scams is crucial to protect yourself and others from fraudulent activities. Below is a list of resources for reporting job scams, organized by region:

Global Reporting Resources

  • eConsumer.gov: Managed by the International Consumer Protection and Enforcement Network (ICPEN), this platform accepts scam reports from multiple countries, including those in Europe and Latin America.

eConsumer.gov

  • Interpol: For transnational fraud cases, Interpol can assist with international scam reports.

Interpol


North America

  • United States – Federal Trade Commission (FTC): Handles complaints about fraudulent business practices, including job scams.

ReportFraud.ftc.gov

  • United States – Better Business Bureau (BBB): Tracks and reports scams; you can also file complaints.

BBB Scam Tracker

  • Canada – Canadian Anti-Fraud Centre (CAFC): Canada’s central agency for reporting fraud and scams.

Canadian Anti-Fraud Centre


Latin America

  • eConsumer.gov: As mentioned above, eConsumer.gov accepts scam reports from Latin American countries.

eConsumer.gov

  • Argentina – Dirección Nacional de Defensa del Consumidor: Argentina’s national consumer protection agency for reporting fraud.

Dirección Nacional de Defensa del Consumidor


Europe

  • European Consumer Centres Network (ECC-Net): Assists with cross-border disputes within the EU, Norway, and Iceland.

ECC-Net

  • eConsumer.gov: Accepts reports for international scams within Europe as well.

eConsumer.gov


Australia

  • Scamwatch (Australian Competition and Consumer Commission): Provides scam reporting and education for Australian residents.

Scamwatch


Asia

  • Hong Kong – Consumer Council: Handles consumer complaints, including job scams.

Hong Kong Consumer Council

  • India – National Cyber Crime Reporting Portal: India’s government portal for reporting cybercrime and job scams.

Cyber Crime Portal


Middle East

  • United Arab Emirates – Dubai Police eCrime: Allows UAE residents to report cybercrimes, including job scams.

Dubai Police eCrime

  • Saudi Arabia – Anti-Fraud and Cyber Crime Unit: Cybercrime units in Saudi Arabia handle fraud reports; contact through the Ministry of Interior.

Africa

  • South Africa – South African Police Service (SAPS): Handles various forms of fraud and cybercrime reports.

SAPS Crime Stop

  • Nigeria – Economic and Financial Crimes Commission (EFCC): Nigeria’s central agency for reporting financial fraud.

EFCC

When reporting a scam, provide as much detail as possible, including any correspondence, the company’s name, and the nature of the scam. This information helps authorities investigate and take appropriate action.


TL;DR

Frequently Asked Questions (FAQs) About Remote Job Scams

1. What are common remote job scams?

Common scams include fake job postings that ask for upfront payments, requests for personal information under the guise of payroll setup, and scams involving fake equipment purchase reimbursements.

2. What is a pig butchering scam?

Pig butchering scams involve scammers building trust over time to convince victims to invest in fraudulent schemes, often related to cryptocurrency or fake remote jobs.

3. How can I avoid job scams?

Research the employer, avoid any jobs that require upfront payment, and verify company details on official websites or LinkedIn before proceeding.

4. What should I do if I suspect a scam?

If you encounter a suspicious job posting, stop communication, avoid sharing personal information, and report it to the platform or authorities immediately.

5. Is it safe to apply for remote jobs online?

Yes, but staying informed and vigilant is crucial. Always verify the legitimacy of job offers and avoid any that seem too good to be true.


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