BBB warns job hunters: Beware of scams

9/18/2009

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As the unemployment rate rises, so does the threat of scams targeting job seekers. Your BBB warns job hunters to be wary of scammers looking to make a fast buck.
The national unemployment rate is nearly 10 percent—worse than the Federal Reserve predicted in April. As more people are out of work, they are also becoming targets of scammers taking advantage of those already facing a tough financial situation.
“More families are vulnerable to suspect offers as they try to find work in an extremely competitive job market,” said Norman Wright, president and CEO of your BBB. “Scammers target the unemployed because of the growing number of potential victims.”
BBB suggests you be wary of:
Requiring fees up-front
A company recently ran ads in Florida claiming it was looking to hire 2,500 employees for its new headquarters. Applicants had to submit $24 “for a background check.” Law enforcement later found out the money only went to the pockets of the company’s owner. Sadly, this is not a unique case. And while the amount of money lost by each victim is small, the total amount taken in by the schemer can be significant.
BBB advice: You should never have to pay money up front to get a job. Be leery if a potential employer asks you to pay the company for testing, training or background checks.
Big promises without results
Job placement businesses, or headhunter firms, generally don’t charge job seekers; instead they’re paid by companies looking to fill positions. Some job placement companies, however, take money from job hunters and don’t fulfill their promises of quick employment. One placement firm advertising on Craigslist charged up to $195 and guaranteed it could find job hunters work. Unfortunately, job hunters didn’t receive call backs or refunds and had no way to contact the company.
BBB Advice: Research a job placement company with BBB before signing contracts or paying money. Be cautious about paying up front fees and know their refund policy.
Phishing attempts
Identity thieves use numerous methods to get personal information from job hunters. Spam e-mail may offer a great job and direct the job hunter to a Web site that installs malware or solicits bank account or Social Security numbers. In other cases, the job hunter might be asked to submit a resume, be told they’re hired and then immediately be asked for bank account or Social Security numbers.
BBB Advice: Be cautious when responding to unsolicited e-mails, even if the company name is well-known, and don’t click on links in the e-mail until you’ve confirmed the business and e-mail are legitimate. Legitimate employers will need Social Security numbers for tax purposes and may need a bank account number to deposit paychecks, but be wary of requests for such information from businesses and job offers that you haven’t vetted fully.
For additional information and advice you can trust, start with bbb.org or call 850.429.0002.

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