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BBB Warns Job Hunters Nationwide to Watch Out for Employment Scams

8/16/2010

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Media contact:  Janet C. Hart, APR, CFEE (704) 927-8617 office

Weak Economy Breeds Employment Schemes

 

CHARLOTTE, N.C. – Now that the kids are back in school, you may be looking for a job. Or you could be one of many people who have been laid off or unemployed for a long time. With the national unemployment rate hovering around 10 percent, the Better Business Bureau warns that scammers are preying on unemployed people who are looking for work.

 

“With high unemployment and very little job growth, scammers are fishing for victims in a crowded pool of job seekers,” said BBB President Tom Bartholomy, “and they are reeling them in one right after the other.”

 

According to the U.S. Department of Labor, new jobless claims in mid-August unexpectedly jumped to 500,000, an increase of 12,000 over the previous week. Not only did jobless claims rise suddenly, but the length of unemployment is also increasing. 

 

The Bureau of Labor Statistics reports that nearly 45 percent of unemployed Americans have been out of work for more than six months.

 

“Even if you have been unemployed for a long time,” added Bartholomy, “it’s critical for you to take additional time to research a company before you accept a job.” The consequences of not doing your homework on a prospective employer can range from having your identity stolen to going to jail.

 

If you are looking for a job, the BBB warns you to watch out for these red flags:

 

The job promises full-time income for part-time work. If it sounds too good to be true, it is. Plus, if the job really paid full-time income for part-time work, it would not be available.

 

The company offers “work at home” jobs. While many legitimate businesses allow employees to work from home, there are also a lot of scammers trying to take advantage of older adults, stay-at-home moms and people with disabilities who need to work from home.  The BBB classifies “work at home” jobs as being a highly suspect industry with a high degree of fraud. 

 

Common work at home jobs that turn out to be scams include check processing and repackaging products. For example, you are hired to process payments. Your job involves receiving bundles of (fake) checks, depositing them into an account set up by you at your bank, and then wiring the money to another country. You are now involved in money laundering. Or, you may be hired to receive shipments, repackage the products and ship them overseas. You are now receiving stolen goods and shipping them out of the country.

 

“If you get hired by a scammer, you could become involved in criminal activities.” added Bartholomy, “and you would not even know it until the FBI or Secret Service knocks on your front door.”

 

The employer asks for your Social Security or bank account number before you are hired. This is not an employment opportunity, it is a common ‘phishing’ scam. You should never give out your Social Security or bank account numbers over the phone or via email.

 

The job involves being a “mystery shopper.” While there are some legitimate jobs, the BBB classifies mystery shopper jobs as a highly suspect industry with a high degree of fraud.

 

If you are hired as a ‘mystery shopper,’ you will receive a check for usually about $5,000 to deposit in your bank account. Then, you will be instructed to test the services of Western Union or MoneyGram by wiring the bulk of the money to someone overseas.  Within days, the check you deposited will be returned by your bank as fake, and you will be on the hook for repaying your bank the $5,000.

 

The prospective employer asks you to pay money upfront. Scammers make a fortune getting new ‘employees’ to pay for training materials, start-up kits or background checks for non-existent jobs. “In N.C., it is illegal for a company to charge you an advance fee for a job,” said Bartholomy. “You should not have to pay to work for a company, they should pay you.”

 

The prospective employer’s emails have grammar and spelling errors. Online fraud usually originates from other countries where English may not be their first language.

 

The company requires you to check your own credit through their credit check service. This ploy is either a phishing scam to steal your identity or a sales scam to sign you up for a credit monitoring service.

 

For more information about employment scams or to check out a prospective employer, please visit www.bbb.org.

 

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