DAYTON, OHIO, September 1, 2010 - As the unemployment rate hovers around 10 percent, your Better Business Bureau warns scammers are taking advantage of the opportunity by preying on the unemployed. Identifying common red flags of scams is one way you can protect yourself and your wallet.
According to the Labor Department, 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 bleak for many. According to a July report from the Bureau of Labor Statistics, nearly 45 percent of unemployed Americans had been out of work for more than 6 months.
“The dismal employment rate means a lot of people are desperate for work and may be grasping for any job, which creates a great opportunity for scammers,” said John North, BBB president and CEO. “Not thoroughly researching a job opportunity can make a bad situation even worse and a victim can lose hundreds or even thousands of dollars to any number of job-related scams.”
Your BBB recommends looking out for the following seven red flags when searching for a job:
Red Flag: The employer offers the opportunity to become rich without leaving home. While many legitimate businesses allow employees to work from home, there are also a lot of scammers trying to take advantage of senior citizens, stay-at-home moms, students and injured or handicapped people looking to make money conveniently at home. Use extreme caution when considering work-at-home offers and always research companies with your BBB first. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.
Red Flag: The employer asks for money upfront. It’s rarely advisable for applicants to pay upfront fees or make required purchases to get jobs. Your BBB often hears from job hunters who paid phony employers for supposedly required background checks or trainings for jobs that didn’t exist. You should always research jobs thoroughly before opening your wallet. Also, be wary of job placement companies asking for large upfront fees to find you jobs.
Red Flag: The salary and benefits offered seem too-good-to-be-true. The adage holds true for job offers: if the deal sounds too-good-to-be-true, it probably is. Phony employers might brag about exceptionally high salary potential and excellent benefits for little work and no experience necessary to lure unsuspecting job hunters into their scams.
Red Flag: Employer e-mails are rife with grammatical and spelling errors. Online fraud is often perpetrated by scammers located outside the U.S. Their first language usually isn’t English, evident in their poor grasps of the language, which can include poor grammar and misspellings of common words.
Red Flag: The employer requires a credit report check. After posting resumes online or responding to online job listings, many job hunters received what they thought was good news—e-mails from interested employers. To be considered for jobs, applicants have to check their credit reports through recommended Web sites. In reality, the e-mails are attempts to get job hunters to divulge sensitive financial information or sign up for credit monitoring services.
Red Flag: The employer is quick to ask for personal information, such as Social Security or bank account numbers. Some job seekers have been surprised to learn they’ve gotten jobs without interviews. However, when employers asked for personal information for necessary paperwork, suspicions were raised – and rightly so. Regardless of the reason, you should never give out your Social Security or bank account number over the phone or e-mail and only after you’ve confirmed the job is legitimate.
Red Flag: The job requires you to wire money through Western Union or MoneyGram or receive and forward suspicious goods. Many phony jobs require employees to cash checks sent by companies through the mail and then wire portions of money to other entities. Checks might clear bank accounts, but will eventually turn out to be fakes, leaving employees out the money wired to scammers. Your BBB also warns against receiving and mailing suspicious goods—such as electronics or luxury items—overseas.
Contact your BBB for more information on job scams. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.
About Your BBB Serving Dayton and the Miami Valley
Your BBB is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses earning BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. Your BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 126 BBBs serve communities across the U.S. and Canada, evaluating and monitoring nearly 4 million local and national businesses and charities. Your BBB serving Dayton and the Miami Valley serves Montgomery, Greene, Clark, Darke, Miami, Preble, Shelby and northern Warren counties. Please visit www.bbb.org for more information about your BBB.
###