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BBB warns of employment scams increasing amid the pandemic

COLUMBIA, Mo. (KMIZ)

A recent study by the Better Business Bureau shows employment scams have been on the rise throughout the COVID-19 pandemic.

In 2020 BBB estimated 14 million scam victims with $2 billion in direct losses related to job scams. Losses reported to the FBI's Internet Crime Complaint Center linked to employment scams increased by 27% from 2018 to 2020.

The 2020 report on job scams from the BBB found that people 25-34 years old were the most likely to fall victim to employment scams.

BBB is warning people searching for jobs to verify employment offers to avoid identity theft, fake checks, and illegal jobs.

Identity theft is one common outcome of job scams. Scammers tend to steal people's personal information to open up bank accounts to prolong the fraud. BBB found 34% of victims gave their driver's license number to scammers and 25% gave their social security number to scammers.

Fake checks are another way people fall victim to employment scams. The BBB study finds that 36% of job complaints to BBB involve a fake check. At the same time, job complaints made to the Federal Trade Commission increased by 65% between 2015 and 2020.

Employment scams can be used for other purposes as well. Scammers will use victims as money mules to mail fake checks or participate in reshipping scams.

Many recent reports show victims getting scammed looking for jobs that allowed them to work from home. At the end of October one person who reported fraud to BBB said they were promised a job, but it went south once personal information was shared.

"I allowed them to charge my card to pay for goods upfront and then they charged extra money to my card and of course now will not respond to my emails or calls," the victim said.

Plenty of other cases follow similar timelines as well. Another person reported fraud for a work from home employment job where a hiring manager scammer used fake checks to steal $3,500.

"I was sent an e-check that was canceled and was then sent a paper check. That check was returned in my account resulting in it becoming negative," the victim said.

BBB recommendations to avoid job scams:

  • Research the job offer
  • Check on businesses at BBB.org
  • Do an internet search
  • Examine the email address
  • Consider creating separate email address/bank account
  • Look out for mystery shopping or secret shopper positions
  • Look out for work-from-home jobs involving shipping packages
  • Don't fall for fake checks
  • Be cautious in providing personal information
  • Look out for vague job descriptions
  • Don't respond to unknown numbers or suspicious addresses
  • Don't click on any links in a text message

The FTC has taken action against job scammers, including a fake job placement company the agency sued in 2019.

If you or someone you know has fallen victim to a job scam, make sure to report it to BBB, FTC, IC3, and the Canadian Anti-Fraud Centre.

Article Topic Follows: News

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Zola Crowder

Zola Crowder joined the ABC 17 News team as a multimedia journalist in June 2020 after graduating from the University of Missouri with a broadcast journalism degree. Before reporting at ABC 17, Zola was a reporter at KOMU where she learned to cover politics, crime, education, economics and more.

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