NEW YORK — As job-seekers navigate a difficult job market, an alarming number are entangled in deceptive schemes promising lucrative pay for simple online tasks. According to the Federal Trade Commission, these scams are becoming increasingly widespread.
Understanding Job Scams and Their Appeal
Scammers often initiate contact with tailored messages through platforms like WhatsApp. They skillfully build trust before exploiting their victims. Kati Daffan, assistant director of the FTC’s marketing practices division, explained that these scammers evolve their tactics frequently to stay ahead of detection.
Reports indicate substantial financial losses from these deceitful schemes, tripling from 2020 to 2023. Early 2024 alone saw losses exceed $220 million, with “gamified job scams” playing a significant part in this. Around 20,000 individuals fell for these scams in the first half of 2024, illustrating the growing trend.
Common Exploits in Gamified Job Scams
The typical scam preys on job-seekers by offering enticing promises of earnings through innocuous activities like “product boosting” or completing “optimization tasks.” It’s crucial to recognize that these tasks appear as lucrative with a promise of “commissions” for each click. However, the purported earnings displayed in the app are fabricated.
When the platform requests a deposit—often in cryptocurrency—to unlock earnings, it’s a tactic to strip victims of real money. The promised payouts remain elusive, resulting in significant losses. Eva Velasquez of the Identity Theft Resource Center notes that new job market entrants and those facing language barriers, among others, often fall prey to these schemes.
Recognizing and Avoiding Job Scams
Job scams typically feature a ready-to-start job with minimal interview requirements. They appeal to those eager to work from home and may seem too good to be true. Velasquez underscores the economic pressures that might drive individuals to overlook red flags.
Here are some important reminders:
- Ignore unsolicited messages offering jobs or unsolicited praise.
- Never pay upfront for a job opportunity—true employment doesn’t require pre-payment.
- Be wary of jobs involving online ratings without physical product usage.
The Associated Press is supported by the Charles Schwab Foundation for educational and explanatory reporting to foster financial literacy. This foundation operates independently from Charles Schwab and Co. Inc., with the AP maintain full journalistic integrity.
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