Landing a new job has always required persistence. Today, it also requires vigilance. Employment scams have become increasingly sophisticated over the past year, with criminals posing as recruiters, creating convincing company websites, and using familiar hiring platforms to lure job seekers into sharing personal information or sending money. As remote hiring becomes more common, distinguishing a legitimate opportunity from a fraudulent one is becoming more difficult.
The financial consequences are significant. According to the Federal Trade Commission, Americans reported losing $150.4 million to business and job opportunity scams during the fourth quarter of 2025 alone. More than 25,000 complaints were filed during that period, and the typical victim lost about $2,000.
Unlike the obvious scams of the past, today's fraud schemes often look remarkably authentic. Scammers copy company branding, create professional-looking job postings, and sometimes conduct interviews that closely resemble a real hiring process. By the time an offer arrives, many applicants have little reason to question its legitimacy. That confidence is exactly what scammers are counting on.
One common tactic is the fake onboarding process. Applicants are congratulated on landing the job and immediately asked to complete employment paperwork that includes Social Security numbers, banking information for direct deposit, or copies of government-issued identification. Instead of preparing a new employee for work, the criminals are gathering everything needed to commit identity theft.
Other scams focus on money rather than personal information. Some applicants are told they must purchase laptops, software, or office equipment before their first day and will be reimbursed later. Others are asked to pay for background checks, training materials, or administrative fees before they can officially start. Legitimate employers rarely require candidates to spend their own money as a condition of employment.
The Better Business Bureau has also reported a sharp increase in so-called "task scams." These schemes promise quick income for simple online activities such as reviewing products or interacting with social media posts. Victims may even receive a small initial payment, making the opportunity appear legitimate, before being pressured to deposit their own money to unlock larger payouts that never materialize.
While the scams vary, the warning signs are often the same. Recruiters communicate through Gmail or other free email accounts rather than company domains. Interviews take place exclusively through text messages or encrypted messaging apps. Offers arrive unusually quickly, often with salaries that seem too good to be true. The biggest red flag is any request for money before employment begins.
Career experts recommend that job candidates slow the process down whenever something feels off. Verify that the position appears on the company's official careers page. Contact the organization directly using publicly listed phone numbers instead of those provided in an email or text message. A legitimate employer will never object to a candidate confirming that an opportunity is genuine.
Employers also have a role to play. Organizations should make it easy for candidates to recognize legitimate recruiting communications by using company email addresses, clearly identifying recruiters on the careers page, and outlining the hiring process – including the fact that applicants will never be asked to pay for equipment or submit financial information before receiving a verified offer. Companies should regularly monitor job boards and social media for fraudulent postings using their name and respond quickly when impersonation is discovered. A brief fraud warning on the careers page or in recruiting emails can also help candidates identify scams before they become victims.
Candidates who believe they have been targeted should immediately notify their bank, monitor their credit reports, and report the incident to the Federal Trade Commission and the FBI's Internet Crime Complaint Center. Employers should respond just as aggressively. If a company discovers its name, logo, or recruiters are being used in fraudulent job postings, it should immediately report the listings to the job board or social media platform, notify the FBI's Internet Crime Complaint Center (IC3), and the Federal Trade Commission, and post a warning on its careers page.
Sources: ftc.gov; bbb.org; ic3.gov; shrm.org
Dan Van Slambrook leads ASE’s Staffing Services team. Click here for more information about how ASE can assist with your hiring needs.