FTC reports a surge in $220M job fraud - here's how to vet listings, according to recruiters

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Job hunting can be grueling.

Endlessly scrolling job boards. Sending another resume seemingly into the void. So when a text message from a recruiter arrives directly to your phone promising flexibility, great benefits, and a big paycheck, you might think it's a gift from the universe.

More likely, it's a scammer targeting you for money, personal information, or free labor.

Job scammers made off with about $220 million in the first half of 2024, alone, according to the latest data available from the Federal Trade Commission. In a blog post, the agency also noted that most people don't report fraud, so this is likely a sliver of reality.

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"I think we're seeing a high number of job scams right now because of the soft labor market, and unfortunately, scammers are trying to take advantage of these vulnerable job seekers," said Priya Rathod, workplace trends editor at Indeed.

And with the proliferation of remote jobs, people might be less inclined to question potential warning signs like the lack of an in-person interview, leaving them all the more exposed.

Here are three warning signs that a job could be a scam, and what to do if you might have fallen for one.

1. The job is vague or too good to be true

Spurious job posts will often offer what sounds like an ideal working situation, where you don't have to do a lot to earn a lot. Odds are, you're not going to clear six figures working two days a week.

"If it sounds too good to be true, it really is -- your mom always told you that," said Michelle Reisdorf, district director at Robert Half.

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These job postings might also skimp on details about what the job actually entails, Reisdorf said. A legitimate listing usually comes with specifics around skills, education, and an outline of expected responsibilities. A fraudulent post might only have a few easily met requirements.

And if someone offers you a job without an interview, think again.

2. The job asks you for money or personal information

Jobs should pay you -- not the other way around.

A recruiter asking you for your Social Security number or banking information before you've been hired is a big warning sign. They shouldn't ask you for money, either.

Unfortunately, tactics like these can prey on desperate job seekers.

"If you're a candidate in a situation where maybe you've been actively looking for quite some time, Reisdorf said, "you might find yourself falling into a trap where you feel like it's necessary to do those things in order to land that job."

3. The recruiter uses unprofessional communications

If you're corresponding via email, check the domain of the recruiter's email address. It shouldn't be coming from something that looks like a personal account. And if it is, Rathod said, ask for them to use their company account.

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Along those lines, verify that the job posting is listed on the company's website.

Also, be wary if the communications are riddled with grammar mistakes or misspellings. The recruiter might also be pushy and try to create a false sense of urgency -- don't let them play into your emotions.

How to protect yourself

Aside from keeping an eye out for red flags, there are other steps you can take to make sure you're not getting scammed. For one, research the company that's supposedly listing the ad.

"Job seekers have to be detectives," Rathod said.

If the posting is making you queasy, call the company and ask to speak to someone in HR to confirm the post -- some scammers may impersonate real companies. Rathod said Indeed has encountered people even posing as Indeed recruiters.

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You can also advocate for yourself.

"One thing for job seekers to keep in mind is it's OK to push back, and if they are trying to play on your emotions or are uncomfortable with the pushback, then it's likely not a real recruiter," Rathod said.

If you're looking at a scammy job posting right now…

If you've found yourself in the midst of what's starting to sound like a scam, there are a few steps you can take.

First, you'll want to stop communicating with the scammer. If you've already given money or financial information, call your financial institution. Depending on what other info you might have given, change your passwords and the like, Rathod said.

If the scammer was posing as a real company, you can always let them know, too.