The pandemic has undeniably brought about significant changes in the workplace, with working from home (WFH) becoming the new norm for many individuals. As a result, countless people have taken this opportunity to reconsider their current careers and decide if their chosen path truly aligns with their aspirations. This phenomenon, known as the “Great Resignation,” has sparked a wave of change as employees expect their employers to provide the option for remote work. In fact, over half of remote-capable workers in the United States enjoy a hybrid work arrangement to accommodate this shift in preferences.
Amidst the rising cost of living, individuals are also actively seeking ways to increase their earnings. Unfortunately, scammers are always ready to exploit the situation and take advantage of unsuspecting victims. In fact, the Federal Trade Commission (FTC) reported that nearly 93,000 Americans fell victim to fraud related to business and job opportunities in the previous year. The financial repercussions were severe, with victims experiencing median losses of $2,000, exceeded only by investment scams. Additionally, employment fraud cases reported to the Federal Bureau of Investigation (FBI) resulted in losses totaling over $47 million. Consequently, it is crucial to exercise caution when encountering job offers that appear too good to be true, as the “employer” could potentially have malicious intentions, seeking personal information, money, or even assistance with illegal activities.
Work-from-home scams typically initiate with online advertisements, often appearing on social media platforms or legitimate career sites such as LinkedIn. Job seekers, innocently looking for new opportunities, may fall prey to these scams. There are several common WFH scams that individuals should be aware of to protect themselves:
1) Reshipping: Victims are hired to receive packages, supposedly to inspect the items, and then send them off to another location. The advertised positions may be labeled as “package handler,” “package processing assistant,” or “warehouse distribution coordinator.” However, the truth is that the victim unknowingly becomes involved in handling stolen goods acquired using compromised financial details. By assisting the criminal in covering their tracks and concealing the original crime, the victim unwittingly becomes an accomplice.
2) Fake mystery shopper: Victims are hired as “mystery shoppers” with the task of purchasing products and reporting on their shopping experience. However, the check they receive to cover the purchases, as well as upfront training and other expenses, bounces, leaving the victim with the financial burden. Scammers may even impersonate reputable organizations like the Mystery Shopping Professionals Association (MSPA) to lend legitimacy to their schemes.
3) Personal assistant: Victims are hired as personal assistants and are asked to complete various tasks, including making purchases for their employers. The employer typically sends a check to cover the expenses, but then requests a portion of the money to be returned via wire transfer or digital app. The victim soon realizes the original check was fraudulent, resulting in financial losses.
4) Start your own business: Scam companies claim to offer resources and assistance to individuals eager to become entrepreneurs. These companies often charge premium fees for course materials that ultimately prove to be useless. The promised “get rich quick” opportunities turn out to be empty promises built on false foundations.
5) Medical billing: Medical billing plays a crucial role in the healthcare supply chain and necessitates extensive training. However, scammers exploit individuals by offering medical billing roles that require no training. Victims are lured in by the promise of course materials and certifications but are required to pay a premium for these resources.
6) Fraudulent job listings: Scammers create fake job listings that do not actually exist. Their ultimate goal is to obtain personal information from applicants, such as Social Security numbers, which can be used to commit identity fraud in their name.
7) Home assembly: Victims are promised payment for assembling toys or crafts and sending them back to the employer. However, in order to start the job, victims are required to pay upfront for a starter kit. After the payment is made, victims quickly discover that there is no actual job.
8) MLM scams: Some multi-level marketing (MLM) opportunities are nothing more than scams, in which fake companies promise high commissions for recruiting others. Additionally, participants are coerced into purchasing products from the “employer” to sell to potential customers.
To protect oneself from WFH scams, it is important to adhere to best practices:
– Conduct thorough research on the company offering the job, checking for any negative online reviews or seeking information from reputable organizations like the Better Business Bureau.
– Ask the employer detailed questions regarding the program’s total cost, payment terms, and recipient information.
– Do not assume that a job ad is legitimate simply because it appears on a reputable website. Scammers can easily manipulate online platforms.
– Avoid jobs that rely on recruiting others to the company for earnings.
– Be cautious of information presented on the company’s website, including testimonials, as scammers can fabricate these details.
– Never respond to unsolicited contact and refrain from clicking on links in unsolicited communications, such as emails or texts.
– If approached with an unexpected job offer, conduct background research on the company independently, rather than replying directly to the initial email.
The increasing popularity of WFH scams reflects both the worsening economic climate and the growing preference for remote work. While there are legitimate job opportunities available, it is paramount to exercise extra caution when pursuing leads to ensure your safety and protect yourself from falling victim to fraudulent schemes.