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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.
Also: I’m a tech professional, and an AI job scam almost fooled me – here’s how I caught on
“I think we’re seeing a high number of job scams right now because…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.