WASHINGTON, D.C. — A new report shows employment scams are now the second riskiest scams for consumers. Reports about this type of scheme increased in 2022, according to the Better Business Bureau’s Scam Tracker Risk Report. Victims also lost a lot more money in employment scams compared to other kinds.
This new report highlights the riskiest scams, where consumers are likely to lose money or their identity.
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Online shopping scams remain in the number one spot on the 2022 Scam Tracker Risk report, but what’s different this year is that employment scams climbed to second place.
BBB Spokesperson Melanie McGovern explained a lot of this has to do with people wanting to continue to work from home. Scammers promise remote jobs, high wages and flexible opportunities.
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“When you fill out an employment application, you are giving your social security number, your legal name, and bank information for direct deposit,” McGovern said. “So, that’s what makes the scam so risky. You are going to lose your information. You could lose money.”
The median amount lost to employment scams is about $1,500. The BBB said that’s significantly higher than the overall median of $171 for all scams.
The BBB is giving tips to look for to avoid becoming a victim.
“The biggest red flag is the interview,” McGovern said. “If they’re not face-to-face with you on a computer, if they’re just texting, if you’re asking ‘hey, can we talk on the phone’ and they want to text on some of the privacy texting apps instead of phone number-to-phone number, if the whole entire job process is via email, if you don’t have voice-on-voice contact or see the person on a computer screen, that is a huge red flag that the job is not real.”
The BBB also said more people reported losing money when targeted by a website, social media, or email, than any other contact methods.
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