Boosted by AI, job scams rose by 118% in 2023 compared to the previous year, according to report!
Employment scams surged last year, as criminals used AI (artificial intelligence) to steal money and personal information from unsuspecting job seekers, experts said. Consumer complaints about job scams rose by 118% in 2023 compared to the previous year, according to the Identity Theft Resource Center (ITRC).
Scammers often pretend to be recruiters, posting fake job listings to lure applicants. They then steal valuable information during the interview process. These fake job listings often appear on reputable websites like LinkedIn and other job search platforms, making it difficult to distinguish between legitimate and fraudulent opportunities, the ITRC noted. One of the main dangers is providing sensitive information, such as financial account details or Social Security numbers, which criminals can use to steal identities.
In 2022, consumers reported losing $367 million to job and business opportunity scams, a 76% increase from the previous year, according to the Federal Trade Commission (FTC). The average victim lost about $2,000, the FTC reported.
While job scams made up only 9% of total identity scams in 2023, compared to 60% for Google Voice scams, they are an emerging threat, said ITRC president and CEO Eva Velasquez. “Job scams have been around since there were jobs. [But] they’ll continue to grow because of a number of external factors that are occurring”, she added.
Reasons Behind Job Scam Increase
Advancements in AI allow scammers to create job listings and recruitment messages that appear more authentic. “AI tools help refine the ‘pitch’ to make it more believable as well as compensate for cultural and grammar differences in language usage”, the ITRC report stated.
The increase in remote work since the pandemic has made workers and job seekers more accustomed to digital-only interactions, Velasquez said. During a fake hiring process, job seekers may only interact with a supposed recruiter via text or WhatsApp, which is a “big red flag”, Velasquez noted. Recent college graduates, immigrants, or others new to the U.S. workforce might think digital-only hiring is normal, especially for remote jobs, but it usually isn’t, she added.
Protecting Yourself from Job Scams
Con artists might ask for money during the hiring process, the FTC warned. They might send an invoice for advance payment of job-related equipment (like a computer) or training, promising reimbursement but never delivering.
Scammers might also ask for personal information, such as a driver’s license, Social Security number, or bank account details, under the pretense of filling out “employment paperwork”, the FTC stated.
“Scammers will promise you a great job, but what they really want is your money and your personal information”, New York Secretary of State Robert Rodriguez said in a consumer alert this year.
Job seekers should not expect to provide personal information until after they’ve received and accepted a job offer, Velasquez advised. While this can help screen for legitimacy, it’s not foolproof, she added.
Here’s how to better protect yourself, according to Velasquez and the FTC:
- Don’t have a false sense of security on well-known job search platforms;
- Independently verify that the company exists and is hiring. Do your own research before accepting a job offer;
- Be cautious if you didn’t initiate contact with a prospective employer or recruiter. Reach out to the company directly using verified contact information;
- Only limited personal information is typically required during the application process: name, phone number, job and education history, and possibly email and home address;
- Digital-only interactions are a red flag, but phone calls alone don’t guarantee security;
- Legitimate employers won’t send you a check to buy supplies and then ask you to return the leftover money. This is a fake check scam;
- Be wary of offers that sound too good to be true. For example, a job ad for 100% remote work requiring few skills and offering a high salary is not realistic.