Scammers are always looking for ways to take advantage. If you’re searching for a new job, you’re more likely to go after every available opportunity, even if it seems too good to be true. But be careful—bad actors sometimes use phony job offers to lure victims into sharing personal information, which can be used to commit identity theft or fraud. Even if you’re not looking for work, a scammer posing as a recruiter could target you or a loved one.
According to a recent study by the Identity Theft Resource Center, job scams increased a whopping 118 percent in 2023, often aided by the use of AI. Used to make bogus job listings look more legitimate, AI tools have helped make job scams much easier for fraudsters.
In addition, the Federal Trade Commission (FTC) received more than 90,000 consumer complaints about fake job opportunities in 2024. Their research shows that in some cases, falling victim to job scams can lead to money loss—$109 million was lost to employment scams in the third quarter of 2024. In other cases, scammers aimed to steal personal information, which can lead to identity theft.
To help combat this growing problem, we’re breaking down the most common employment scams, plus tips on how to spot the red flags.
Common job scams
Job scams can be tricky to spot. Fraudsters may advertise fake positions in the same places that actual employers use to market real jobs. This includes employment sites like Indeed, social media platforms like LinkedIn, newspapers and classified ads, and even television, radio, and billboards.
Sometimes—especially when a resume is uploaded to a job site—scammers may even approach the person who uploaded it directly, asking them to apply for a fake position that they’re qualified for.
Some job scams are more elaborate than others, but among the most common are:
Work-from-home job scams: Interest in remote work continues to increase and criminals are capitalizing on the trend. The promised remote positions vary—from virtual assistants to sales roles—and are often awarded to applicants after a speedy interview process via video call or text. Once hired, the remote “workers” are asked to share standard payroll information, including their Social Security number and banking information.
Reshipping job scams: Scammers often enlist “quality control managers” or “virtual personal assistants” to receive packages at their homes. The “workers” are then asked to repackage and reship the goods that are delivered to them. Trouble is, those goods were bought using stolen credit cards or counterfeit money orders. In addition to being unknowingly part of a fraudulent scheme, victims who share their personal information to apply for these fake roles also put their identity at risk.
Headhunter scams: Fraudsters may also reach out to job seekers directly and pose as staffing agents claiming that they’re ready to help them find work. Instead, they steal victims’ money or personal information. If someone claiming to be a headhunter asks you for payment upfront, beware. Legitimate staffing agents receive payment from the employer, not the person searching for a job.
Government, postal, and mystery shopper scams: These bogus job listings often require you to invest in fake courses to obtain a specific certification for the role. They also might prompt you to provide personal information to undergo a phony background check.
Fake check scams: Fraudulent checks are worked into many employment scams. In some scenarios, scammers send a “new hire” a fake check to cover their first paycheck, work-from-home supplies, or tuition for a certification class. Then, they request that the employee send some of the money back via a peer-to-peer payment app—before they’ve had a chance to cash the bogus check. When the check eventually bounces—a process that could take weeks—the victim is out of the money they sent.
How to spot the red flags of a job scam
Anyone open to new work opportunities could be at risk of falling victim—even middle school, high school, and college students.
In one common scam, fraudsters connect with students digitally (typically on social media) offering money for easy or exciting jobs like sending emails or creating music for video games. This can lead to the scammer accessing the teen’s financial account and draining it before anything seems suspicious.
Though scammers are savvy, certain red flags can indicate that a job is a scam, like if:
The position advertises an unreasonably high salary or other enticing benefits. Steer clear of advertisements for any “get-rich-quick” jobs. The wording on these job postings could be vague (like “earn money fast”) or specific (like “earn thousands of dollars each month working from home”). Also, be wary if the advertised salary seems too high for the role.
The interview process is easy—too easy. Say you’re approached by a company that says they found you through LinkedIn. You land a Zoom interview for an exciting job opening that same day and are offered the gig on the spot—all they need now is your contact information, Social Security number, and bank account and routing numbers to get you set up on payroll. Feeling rushed, pressured, or surprised by the speed of an interview process are signs that the job is likely a scam.
Your new “employer” asks you to buy something. Whether that “something” is training equipment, tuition for a certification class, or a computer, a legitimate employer would not require you to pay for these items before or upon taking a job—even if they send you a check to cover the costs (remember that fake checks are often part of the scam).
They ask for sensitive personal information on the job application. Legitimate employers do request your name, address, and contact information on job applications; however, you’ll never need to provide your Social Security number, driver’s license, or bank account information during an interview process. If you’re applying for a job in which a background check is required, such as for a government agency, reach out to the central number of the organization or company to verify that the position you’re applying for is legit before continuing.
The entire hiring process is over the phone. Online-only interactions (especially phone-only interactions) could indicate that the job and/or the company approaching you is not real.
Tips for a safe and successful job search
If you know a friend or family member that’s currently interviewing for a job, pass on these helpful tips:
Be wary if the interviews are held via text, instant message, or WhatsApp. While job interviews commonly happen over video calls, job interviews that occur only via instant chat or digital communication can be a sign that the job is a scam.
Did you initiate contact or did a recruiter or company reach out? If the company contacted you first, do some research to verify the company exists and is actually hiring.
Pay close attention to the email address of the person you’re communicating with. Is it a personal Gmail or Hotmail account rather than a company-issued email address? That could indicate a scam.
Don’t be afraid to ask questions. Job interviews are a two-way street, and a legitimate employer will answer any questions you may have—while a scammer may avoid them.
Plug the company’s name and terms like “scam” or “complaint” into a search engine. Job scammers will advertise a fraudulent job posting with either a phony company or a reputable business. A quick Google search could help you see if reports of job scams have been associated with the business recently.
If something sounds too good to be true, it probably is. If an offer seems too perfect, be suspicious.
Finally, use your gut and trust your instinct. Consult with people you trust and are close to before sharing your personal or banking information with any potential or new employer.
Feeling rushed, pressured, or manipulated in any way during the process of an interview for a job are all valid reasons to stop communication immediately.
If you're an Allstate Identity Protection member and you're ever in doubt, give us a call before you share money or personal information. If a job scam leads to identity theft, our trained and certified specialists are here to help.