Want to make $1,000 a day? Here are the telltale signs of a job scam.

By Hannah Erin Lang

As if the job market weren't tough enough, scam messages about fake job openings are on the rise. Here's how to protect yourself.

"Hi, my name is Brianna and I'm a recruiter," the message says. "We are in need of a team of part-time assistants."

So begins a text message received by a MarketWatch reporter last week. The "recruiter" goes on to describe what sounds like a pretty great gig: totally remote work, flexible hours, pay that can range from $200 to $1,000 per day. The recruiting agency that "Brianna" says she works for, Robert Half (RHI), is a real staffing company with offices across the country.

But the job she's describing doesn't exist.

The message is almost certainly a job-related text scam, a kind of con that's become increasingly common in the last couple of years. There was a 118% increase in reports of job scams from 2022 to 2023, according to recent data from the Identity Theft Resource Center - and all signs point to another increase this year.

"That's scary," Eva Velasquez, the nonprofit's president and CEO, said of the data. "This is a place where scammers are gravitating toward."

Robert Half, the staffing company cited in the text, said it is aware that scams are on the rise in the recruitment industry and provides guidelines for job seekers to determine whether a communication they've received is fraudulent.

The company will never ask applicants to send materials through instant-messaging services, according to its website.

A weakening U.S. labor market may leave frustrated job seekers more susceptible to the fake offers and phony recruiting schemes sent by scammers, who are constantly fine-tuning their tactics to trick people into handing out their information, consumer advocates warn.

"Now your odds of encountering a phony posting or offer are going to increase, because there simply aren't as many legitimate ones that are out there," Velasquez said.

Scams are on the rise

Consumers have lost about $24 million to job and employment-agency text scams so far this year, according to data from the Federal Trade Commission. Texting is one of the most common contact methods used by scammers, said Ben Davidson, an attorney in the FTC's division of marketing practices.

"Scammers have learned that people won't always pick up the phone, but text messages are typically read," he said.

The median dollar amount lost in text scams so far this year is $1,000, according to the FTC data.

The rise of remote jobs has moved many work-related communications online - and fraudsters are taking advantage of that shift to reach people in new ways, said Toni Frana, lead career expert at the remote-jobs site FlexJobs.

A cooling labor market has also created more opportunities for scammers to capitalize on job hunters' desperation, experts said. Last month, the unemployment rate ticked up to 4.3%, and the number of job openings, particularly for workers in white-collar roles, has dwindled.

"There's been a lot of changes in the way we seek jobs, in the way we hire people, in the way we work," Velasquez said. "Anytime you have big changes ... scammers will insert themselves in there and try to muddy the waters."

The telltale signs of a job scam

A typical recruitment scam goes something like this: You receive a message - either by text or email - about a potential job opportunity, typically from someone who claims to be a recruiter for or an employee at a company. The message might say you seem to be a good fit for an open job and ask if you're interested in learning more.

The "recruiter" may ask questions about your employment history, salary expectations and other normal-sounding topics. They often ask to move the conversation to a different platform, such as WhatsApp.

There, they might start asking for personal information, saying they need your Social Security number or a photo of your driver's license. They might ask for your banking details, claiming they need to set up direct deposit for your paychecks. "They will keep asking for personal information about your data until you stop giving it," Velasquez said.

Scammers might also ask job seekers to pay processing or application fees, or to pay for phony training.

When a scammer gains access to sensitive personal information like your Social Security or driver's license number, they can use it to steal your identity, apply for loans or open new bank accounts in your name, the ITRC warns. If you hand over your credit-card information, they could make unauthorized charges.

But these types of messages tend to have a few red flags that job seekers can spot, experts said.

Take the text message that the MarketWatch reporter received: The first clue that something is amiss is that the text comes from an unusual-looking iCloud email address with a username that is just a series of letters and numbers. It's not an account associated with an official company.

Scammers are more likely to text you from an email address than from a phone number, experts said, because it's easier to obtain the former.

Another eyebrow-raising element is the pay offered for this position. A rate of $1,000 a day totals about $20,000 a month - or an annual salary well above $200,000 - for this "flexible" and "part-time" role.

"It's always good advice to be suspicious of something that appears too good to be true," Davidson said. "Someone texting you out of the blue without knowing who you are and what your qualifications are, [and] offering you a lavish salary to work at home, is surely not a legitimate text."

The "recruiter" also asks the recipient to get in touch via WhatsApp, another sign that the text is likely fraudulent. Because cellphone carriers can filter out or block spam or scam texts, scammers tend to prefer encrypted chat services where they can more easily fly under the radar.

Although these factors clearly point to this text being a scam, the list of red flags is constantly evolving as scammers change up their tactics, Davidson said.

A text may not include a name or company, experts said. It may be as simple as a message from an unknown number asking if you're looking for work.

"We see a really broad variety of messages," he said. "Text scammers are pretty nimble, and they often don't send the same message over and over again."

How to protect yourself from job scams

Phony recruitment texts aren't the only type of job scam growing more common. Scammers are also posting fake openings and reaching out to candidates on employment sites, experts said.

Frana relayed the story of one job seeker who applied to an opening through an employment site. When the "company" responded, the applicant was told their resume wasn't in the right format - but that it could be reformatted, for a fee.

Anytime someone asks you to pay for something as a part of the application and interview process, it's a good idea to give it a closer look, Davidson said. "Legitimate companies do not charge fees for jobs," he said.

In addition to knowing what red flags to look for, there are other steps job seekers can take to protect themselves. If something about the recruiting process feels off, you can check the careers section of a company's official website to see if the role you're applying for is listed there. Velasquez recommended calling the company and asking about openings to verify that a posting is legitimate.

If you get a message that you're pretty sure is a scam, you can report it to the government at reportfraud.ftc.gov.

And the best way to be sure you're not getting scammed is simple: Take a closer look and do your due diligence if something feels off.

"I think any job seeker right now needs to be cautious and diligent," Frana said. "Scammers will continually try to find ways to get what they want."

What personal-finance issues would you like to see covered in MarketWatch? We would like to hear from readers about their financial decisions and money-related questions. You can fill out this form or write to us at readerstories@marketwatch.com. A reporter may be in touch to learn more. MarketWatch will not attribute your answers to you by name without your permission.

-Hannah Erin Lang

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-21-24 1020ET

Copyright (c) 2024 Dow Jones & Company, Inc.