For every legitimate home-based job performed over the Internet, there seems to be an equal number of scams promising people untold wealth and a stable income working from the comfort of home. When the economy gets worse, the scams increase. So how can you protect yourself from these scams? The simple answer: knowledge.
Never pay it forward
One of the quickest ways to lose money in an online job scam is to get sucked in by the postings that ask you to spend some of your own money upfront. The most commonly used approach in pay it forward schemes is to ask applicants to pay an excessive start-up fee as an investment or to purchase a starter kit. In most cases, you never hear back from the recruiter after paying your investment fee.
If the starter kit was the ruse that scammed you, you’ll likely receive a package full of generic and downright useless information that leaves you giving up on your new online career in not time.
Money forwarding
Similar to other pay it forward schemes, the money forward scheme actually brings you into the loop on criminal activity. The typical scenario involves a recruiter asking you to receive a paper check or money transfer in the mail. You are then promised a certain percentage of that money if you then complete the transfer of the funds into a different account.
What is actually occurring here is a fraudulent transfer. Banks are catching up, but in many cases the transfer will go through initially and you’ll keep your cut. However, once the bank finds out the money transfer was fraudulent, you are the only physical person they have to come after for the fraudulent funds and they will do so.
Data fishing
An increasingly popular online job scam involves data thieves and hackers setting up elaborate job postings to draw in potential hires. Intrigued by a job posting and the potential pay, applicants flood a job posting with inquiries about the position. The hackers respond with offers of employment, seeking personal information from applicants.
Some hackers will even create websites for the “business” that look official, further duping applicants. In reality, there is no job and no company. The hackers are looking to get applicants to provide them with Social Security numbers, bank accounts, routing numbers and more. Once they have that information, contact stops and your financial assets are at risk.
Too good to be real
It should seem like common knowledge, but when you’re hoping for a new job it can be hard to taper your optimism. However, when you are looking for a job online it is important to remember that many of those postings that seem too good to be true are often scams. These types of job postings take a number of forms, but they all read the same. The job offers seemingly magnificent pay for very little effort.
How to protect yourself from scams
The best way to protect yourself, your family, and your financial assets from online job scams is to exercise a little bit of patience and caution.
Job scams succeed in large part because people don’t take the time to investigate the information presented to them.
There are a number of steps you can take to combat online job scams. First and foremost, do not share any personal data (Social Security number, bank accounts, etc.) online, via email or over the phone for job postings without thoroughly researching their validity first.
Slow down your reactions and check up on any online posting promising you the moon in return for very little effort. A good place to start is by using the Better Business Bureau’s website to see what you can learn about companies offering you a position online. Last but not least, if a job looks legitimate and you still have reservations, proceed with caution.
Provide only the information relevant to the position (resume, job skills and work experience) and go from there. Be wary of online job postings where a potential employer pushes for more information.