Job fraud will increase by 118% in 2023, helped by AI. Here’s how to stop them

Employment scams soared last year as criminals used artificial intelligence to steal money and personal information from unsuspecting job seekers, experts say.

Consumer reports of job scams increased 118% in 2023 from the previous year, according to a recent report by the Identity Theft Resource Center.

Thieves generally pose as recruiters and post fake job openings to entice applicants, then steal valuable information during the “interview process.”

They often post these fake listings on reputable websites like LinkedIn and other job search platforms, ITRC said, making it difficult to separate truth from fiction.

A major danger is disclosing information about financial accounts or sensitive personal data (such as a social security number) that criminals can then use to steal a job seeker’s identity.

Consumers reported loss According to the Federal Trade Commission, $367 million will be spent on job and business opportunity scams in 2022, an increase of 76% year over year.

The typical victim lost as much as $2,000, the FTC said.

Job fraud is not the most common fraud: in 2023 this was only 9% of total identity fraud. Google Voice scam, which totaled 60%, ITRC said. (Google Voice scams trick people into sharing a Google verification code, which scammers can use for nefarious purposes. They often target people on Craigslist and Facebook Marketplace.)

However, employment scams are an “emerging” threat, says Eva Velasquez, president and CEO of ITRC.

“Job fraud has been around since there were jobs,” Velasquez says. “[But] they will continue to grow because of some external factors that are happening.”

Advances in AI are one of those factors: They allow scammers to generate job postings and hiring messages that look and feel more legitimate, experts say.

“AI tools help refine the pitch to make it more credible and compensate for cultural and grammatical differences in language use,” the ITRC report said.

Additionally, the rise of remote work during the pandemic era has made employees and job seekers more comfortable with digital-only transactions, Velasquez said.

Job seekers may never see a physical person during a mock hiring or interview process: They can only communicate with a would-be recruiter via text message or WhatsApp message, Velasquez said, which amounts to a “major red flag.”

Recent college graduates, immigrants or other people new to the U.S. workforce find such digital-only hires common, especially for fully remote jobs, she said. But hiring generally doesn’t work this way, she added.

Scammers willforce you for money“During the hiring process, the FTC said.

They can send an invoice for the prepayment of workplace equipment (such as a computer) or vocational training. They promise to pay you back, but won’t, the federal agency said.

Scammers may also ask for your personal information in advance — such as a driver’s license, Social Security number or bank account information — to fill out “employment paperwork,” the FTC said.

More from Personal Finance:
Why job skills can make or break your next job interview
Why a return to the office in five days is unlikely
The labor market is still strong, but has ‘become competitive’

“Scammers will promise you a great job, but what they really want is your money and your personal information,” New York Secretary of State Robert Rodriguez said in a speech. consumer alert this year.

Job seekers should not expect to have to hand over personal information until they have received and accepted a job offer, Velasquez said. (While this is a good screening for legitimacy, it may not provide a guarantee of safety in all cases, she said.)

Ultimately, there is “no way to detect job market scams,” according to to the FTC.

Here’s what you need to know and how you can better protect yourself, according to Velasquez and the FTC:

• Don’t have a false sense of security on well-known job search platforms.
• Independently verify that the company exists and is hiring. Don’t accept a job offer until you’ve done your own research.
• If you haven’t contacted a potential employer or recruiter, be wary. Instead, contact the company directly using contact information you know is legitimate.
• The application process generally requires only limited personal information: name, phone number, work and education history, and perhaps email and home address, Velasquez said.
• Digital-only interactions are a red flag. However, telephone conversations are also no guarantee of safety.
• Honest employers won’t send you a check to buy supplies or anything else and then ask you to send back the leftover money. This is a counterfeit check scam.
• Be wary of anything that sounds too good to be true. For example, a job posting for 100% remote work that requires few skills and a huge salary is “not realistic,” Velasquez said.