Job scams promising lucrative pay for simple online tasks are on the rise, as reported by the Federal Trade Commission (FTC). As competition for jobs intensifies, many individuals are becoming victims of these sophisticated scams that often begin with innocuous messages on platforms like text or WhatsApp. The FTC highlights a significant increase in reported losses, with figures soaring from 2020 to 2023 and exceeding $220 million in the first half of 2024 alone.
The scams typically initiate with a message from a supposed “recruiter” offering online work opportunities. Victims are enticed by the prospect of “product boosting” or “optimization tasks” that involve liking videos or rating product images. These tasks are framed as a way to earn commissions per click. However, the promised earnings are fictitious, and victims are ultimately lured into depositing their own money, often in cryptocurrency, to access their nonexistent earnings.
Understanding the Tactics Behind Gamified Job Scams
According to Kati Daffan, assistant director of the FTC’s division of marketing practices, scammers employ increasingly sophisticated methods to build trust with their targets. “Most of the people who end up losing money to a scammer are behaving pretty rationally,” she stated, emphasizing the adaptability of these criminals. The FTC reported that approximately 20,000 individuals experienced gamified scams in early 2024, a drastic increase from 5,000 cases in all of 2023. Daffan noted that this figure likely underrepresents the actual number of victims, as only 4.8% of individuals report their experiences to authorities.
These scams often target vulnerable populations, including recent graduates, long-term unemployed individuals, and immigrants who may lack familiarity with the job market. Eva Velasquez, CEO of the Identity Theft Resource Center, highlighted that these scammers typically offer easy interviews or no interviews at all, making the roles enticing to those eager for employment. “Sometimes they’ll start with praise, and the person will feel their skills are recognized,” Velasquez explained. This flattery can lead victims to lower their guard and trust the scammer.
The allure of working from home and starting immediately can further cloud judgment, especially in an uncertain economic climate. Velasquez pointed out that job-seekers might feel compelled to cross ethical lines, such as leaving fake reviews for products, out of desperation.
Identifying and Avoiding Job Scams
To protect against these scams, the FTC advises potential job-seekers to remain vigilant. Here are key tips to identify task-based scams:
– Ignore unsolicited texts or WhatsApp messages about job offers, regardless of how personalized they may appear.
– Never pay any fees to secure a job or to receive payment, as such practices are strong indicators of fraudulent activity.
– Be cautious of employers promising payment for tasks that involve rating or liking items online without a legitimate process for engaging with the actual products.
As the landscape of job seeking continues to evolve, so too does the sophistication of scams. Awareness and education are crucial for individuals navigating the job market to avoid falling victim to these deceptive practices.
The Associated Press acknowledges support from the Charles Schwab Foundation for educational and explanatory reporting aimed at enhancing financial literacy. This independent foundation operates separately from Charles Schwab and Co. Inc., with the AP solely responsible for its journalism.
