Employment scams triple in Texas since March: BBB

Employment scams have tripled in Texas since March, says the Better Business Bureau.

The BBB says its Scam Tracker reports nearly tripled between March to June 2022 and historical data indicates the season for employment scams is not over yet.

Data shows that for the past two years, reports of employment scams significantly increased during the summer in Texas and across the US, says the BBB. Last year, 34% of all employment scam reports were submitted to the BBB between April and August.

So far for 2022, Texas residents have reported nearly $50,000 in losses.

What do employment scams look like?

The BBB says that the recent shift to remote work has given rise to scammers promoting fraudulent employment listings offering remote work. The organization also warns that while not all victims of employment scams lose money, the personal information they submit to the scammer puts them at an increased risk of experiencing identity theft.

The BBB says that victims of these employment scams could also be inadvertently participating in illegal activity, especially with positions involving package reshipment. Reshipping scams can involve people using stolen credit cards to purchase expensive items that are then sent through a "re-shipper" overseas. Package reshipment positions may also be handling stolen goods or laundered money.

Other typical scams include:

• After being offered a position with a company, the employee provides all the required personal information, including banking information, address, Social Security number and other identification documents. Once submitted, the company ceases contact, and all attempts to establish communication go unanswered.
• The company provides the employee a check to purchase work or training materials. After depositing the check, the company informs the employee that they were overpaid. It then requests the extra money be returned via nontraditional payment methods, such as gift cards, a wire transfer or mobile banking app. Eventually, the victim's bank identifies the deposited check as fraudulent and removes the funds from their bank account, leaving the victim out how much money they ‘returned’ to the company.
• Employment is offered to the jobseeker under the condition they pay for and complete specific training, credentials, or qualifications required for the position. Conveniently, the company provides the courses required or directs the jobseeker to use a particular third party. After paying for the training, the victim never hears from either company again.

How can I avoid employment scams?

The BBB has offered the following tips to help jobseekers avoid being scammed while looking for work. 

• Some positions are more likely to be scams. The BBB advises being wary of package reshipment, secret shopper positions, and any jobs with generic titles such as caregiver, administrative assistant, or customer service representative. Job positions that don't require special training or knowledge appeal to a wide range of applicants, which scammers use to cast a wider net for potential victims. The BBB says it may be a scam if the jobseeker can find the posting in multiple cities with the exact same wording.
• Verify the job posting. If the job posting is for a well-known company, check the company’s career page to see if the position is legitimate.
• Beware aggressive employment offers. Any pressure to sign or onboard immediately indicates that the company may not be legitimate. Be especially wary if the position is offered without an interview or promises a significant income if the employee pays for coaching, training or certifications.
• Do not deposit unexpected or suspicious checks. Be cautious with whom and how you share your personal information, such as banking information. Do not fall for an overpayment scam. Legitimate companies will not overpay an employee and ask for compensation by requiring money to be wired elsewhere, says the BBB
• Get contracts in writing. Employee requirements, qualifications and job duties should be in writing. If using a recruiting service, it should provide a complete contract for the cost of their services, what it includes, who pays for their efforts (either the jobseeker or employer) and what happens if the recruiter fails to find a position.
• Evaluate work-from-home opportunities. The BBB says it is essential to critically evaluate the hiring process of any company offering remote work. Be wary of companies that require the applicant to download a specific mobile app to communicate, conduct the entirety of the interview through text or chat, or do not provide a physical address for the business. BBB recommends verifying that the address matches the business and that the phone number is in service as it is a common practice for scammers to use addresses for home or other companies and a phone number that is either fabricated or not in service.