How to protect yourself from employment scams

What are employment scams?

An employment or job scam is where a cyber criminal encourages you to apply for a position that doesn’t exist. Employment scams can take many shapes and forms and can have serious consequences. Some people have reported their identity being stolen after they provided their driver’s licence or passport, thinking it was part of the employment process. People have also unknowingly helped criminals to launder money.

This guide will help to inform you of the most common types of employment scams and what to look out for when applying for a job.

How big is the problem?

According to Scamwatch, employment scams were the fastest growing scam type last year, with Australians reporting losses of $24.7 million, opens in new window. This figure was 183% higher than it was in 2022.

However, as many cases go unreported, this is likely only the tip of the iceberg.

Common employment scams to watch out for

Employment scams might take different forms. Here are three of the most common.

The upfront fee job

The cyber criminal contacts you by email, phone, SMS or social media and offers you a ‘job opportunity’ with high returns that you can do from home. To accept the job, you need to pay an upfront fee for a ‘starter kit’ or ‘training’. You may also be instructed to provide your driver’s licence or passport as part of the application process. However, the job never existed, and the person not only loses their funds, but faces the risk of identity theft.

The commission or accounting job

You may come across this job advertised on job sites or on social media, or the cyber criminal may contact you directly. Typically, they offer an opportunity to earn commission by transferring funds paid into your account into another offshore account or into cryptocurrency or gift cards. In exchange, you get to keep part of the payment as a commission. These funds have likely come from a scam victim.

The dream job

Cyber criminals may pose as legitimate organisations advertising enticing job prospects. These may be advertised on job noticeboards or social media sites. When you apply, they may put you through an interview process and then offer you the job and ask you to provide your driver’s licence, passport and other credentials as part of the onboarding process. However, when you turn up for work at the organisation, no one has ever heard of you.

The dream job case study 

Danny* had been looking for a job for several weeks and had shared his resume on various employment and social media sites. He was contacted via a messenger app from the “CEO” of an employer he was very keen to work for. He couldn’t believe his luck. Danny checked the LinkedIn profile of the CEO and was very excited to have been contacted by the top boss.

A few days later, Danny was invited to a telephone interview with the “CEO”. The interview was short, but it went well. At the end, he was offered the job on the spot. He was told he would need to complete induction training which he would have to pay upfront for. He would also need to provide his driver’s licence, passport and Medicare details for the “Human Resources” team. Danny didn’t hesitate as he was keen to impress the CEO.

A few days later, Danny arrived at the venue he was given for his induction training. No one else was there. Danny waited for a few hours, before returning home wondering if he had the wrong date.

He tried to contact the CEO but couldn’t get through. He wasn’t too concerned as he would run it by his boss on the Monday when he started work. He spent an extra 30 minutes on the Monday morning making sure he looked perfect for his new job. When he arrived at the company, no one had heard of him or was expecting him. That’s when Danny began to realise something had gone wrong. He found another LinkedIn profile for the CEO and contacted him directly. The real CEO told Danny he had been scammed.

Not only did Danny lose the funds he transferred for the induction training, but he also discovered the cyber criminals had used his driver’s licence to create bank accounts in his name.

He also felt extremely embarrassed for being caught out. However, it is important to remember employment scammers are very skilled in their approach. They have their scam detailed right down to the point where they create fake LinkedIn profiles of CEOs to add to the deception.

*Name has been changed for privacy reasons.

How to protect yourself from employment scams

Some red flags to look out for

• An employer contacts you directly via messenger channels about an exciting new opportunity, promising high returns.
• The employer requests for the interview to be done over the phone instead of in-person. You get offered the job on-the-spot.
• You’re asked to pay an induction fee for training, or start-up materials.
• You’re asked to provide your credentials such as driver's licence, passport or Medicare details as part of the application process.
• You are asked to transfer money on behalf of someone else. In exchange, you may also be offered a commission.

Steps to protect yourself from employment scams

• Be very suspicious of any unsolicited ‘work from home’ or other employment opportunities, particularly if they contact you via social media.
• Confirm that an employment offer is genuine by researching the company thoroughly first. If it is an existing company, call them directly through their official contact number to confirm the job prospect.
• If the offer is from an employer or company you have never heard of before, ask for references from other people who have worked there and make the effort to contact these people. Doing an internet search for reviews on the company can also help.
• Avoid any employment opportunities that demand an upfront payment. Few genuine employers will demand this.
• Be extra cautious if the employer asks you to provide your credentials such as driver’s licence or passport, particularly in the early stage of the interview process.
• Never agree to receive or forward funds through your account as part of a job.