Milwaukee, Wis. – In the first three months of 2023, Better Business Bureau ® (BBB) Scam Tracker℠ received reported job scam losses of nearly $840 thousand, up 250% compared to the same time last year. As more people search for remote opportunities, scammers are looking to cash in.
A 2021 BBB study update, Employment Scams: Reports of job scams skyrocket in 2023, examines patterns of reports, reviews dollars lost and interviews affected job seekers to protect the public through education.
Key findings:
· Early figures for 2023 show job scam reports nearly tripled compared to the same period last year.
· $840 thousand in losses during the first three months of 2023, which is more than the first nine months of 2022.
· Median loss of over $1,500 during the first quarter of 2023. Some job seekers’ monetary losses totaled tens of thousands of dollars.
· Job fraud is the most common type of scam for those ages 18-34.
· Since 2020, over 700 Scam Tracker reports referenced Indeed, 288 LinkedIn and 250 Telegram as their first point of contact with fraudsters.
· “Reshipping scams” where fraudsters trick consumers into buying and shipping expensive electronics appear to be one of the most common job scam types.
Statistics (reported to BBB, FTC and CAFC about employment scams):
· 12,925 BBB Scam Tracker reports with $4.77 million in losses (2020-March 2023)
· 282,061 reports to the Federal Trade Commission’s Consumer Sentinel Network with $845.1 million in losses (2020-March 2023
· 11,435 reports to the Canadian Anti-Fraud Centre with 22.2 million Canadian dollars in losses (2020-March 2023) Read about how the scam works in a one-page infographic.
BBB has examined employment scams in-depth since 2021. But scammers continue to change their tactics to trick job seekers. In some of the most extreme cases, some people found themselves out tens of thousands of dollars.
Donald from Lake Placid, Florida told BBB in an interview that he lost over $100,000 as part of a reshipping scam. Like many others, he was convinced to purchase computers and ship them overseas with the promise of reimbursement. Once the items were sent, the fraudsters disappeared. He remains buried under the debt accrued from the scam.
In San Francisco, California, Michelle’s experience with scammers ended with threats to her family. After accepting what she thought was an administrative position, the fraudsters convinced her she needed to purchase a home office setup. When her “bosses” began asking for gift cards instead of cash for the office equipment, she became suspicious and questioned them. The scammers started calling at all hours of the night, threatening her family if she didn’t comply. In the end, they stole over $150,000, draining her life’s savings.
BBB tips for job seekers:
· Research companies offering jobs at BBB.org.
· Find a number on the business’ website and call to confirm the job or offer is real.
· Check the email address to ensure that it is connected to the company and not a personal “gmail” or “yahoo” address.
· Be cautious providing personal information to unverified recruiters and online applications. · Don’t pay for a job.
Visit BBB.org to check out a business or register a complaint, BBB Scam TrackerSM to report a scam and bbb.org/scamstudies for more on this and other scams.
For an online version click here
For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Inst
ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2021, people turned to BBB more than 200 million times for BBB Business Profiles on 6.3 million businesses and Charity Reports on 25,000 charities, all available for free at BBB.org. There are local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Wisconsin which was founded in 1939 and serves the state of Wisconsin.
