8 common work-from-home scams to avoid

Scams

That ’employer’ you’re talking to may actually be after your personal information, your money, or your help with their illegal activities

20 July 2023
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4 min. read

The pandemic has radical reform the workplace. For many, this has normalized work from home (WFH). For others, it provided an opportunity to reevaluate whether their current career was the right fit for them. A “Big Resignation” followed. Today, most of us expect our employers to give us the option to work remotely. More than half (53%) of US remote workers have a hybrid work arrangement, for example.

With the cost of living affecting many countries, we are also increasingly on the lookout for new ways to make extra money. But scammers are as always prepared and ready to take advantage. Nearly 93,000 Americans reported fraud related to business and employment opportunities last year, according to the FTC. They suffered median losses of $2,000 – more than any other type of fraud except investment scams. Separately, cases of employment fraud reported to the FBI last year resulted in losses of more than $47 million.

It is more important than ever to be on your guard against job offers that seem too good to be true. That ’employer’ you are talking to may actually be after your personal information, your money or your help with their illegal activities.

Eight WFH scams to watch out for

WFH scams usually start with an online advertisement, perhaps on social media or even on even misuse of legitimate career sites such as LinkedIn other platforms where job seekers look for new opportunities. Here are some of the most important ones to watch out for:

) Resending

The victim is hired to receive packages, possibly ‘inspect’ the items and then send them to another destination. It may be advertised as “package handler,” “package processing assistant,” or even “warehouse distribution coordinator.” In fact, the victim receives stolen goods purchased using compromised financial details, effectively helping the criminal cover their tracks to hide the original crime.

2) Fake mystery shopper

The victim is hired to buy products and report on the shopping experience. However, the check they get to pay for the purchases and/or advance training and other expenses will bounce. Some scams may impersonate the Mystery Shopping Professionals Association (MSPA) to add legitimacy.

3) Personal assistant

The victim is hired as a PA and asked to make some purchases for their employer, who sends a check to cover the expenses. They can ask for some of the money to be returned via bank transfer or digital application. Of course, the original check will bounce, leaving the victim in the red.

4) Start your own business

A scam company claims to offer resources to help the victim become an entrepreneur. Usually they charge a premium for this course material, which turns out to be useless. The “get rich quick” promises are soon revealed to be built on sand.

5) Medical bills

Medical billing is an important part of the healthcare supply chain. It can take many months of training to get up to speed with this type of work. However, scammers will often offer medical billing roles that require no training. The course materials and/or certifications they include to get the victim up and running will cost a premium.

6) Fraudulent mailing list

Sometimes scammers upload listings for jobs that don’t exist. The end goal is to get the applicant to hand over personal information such as social security numbers and other details that can be used to later commit identity fraud in their name.

7) House meeting

Victims are told they will be paid to collect toys or crafts and return them to their employer. However, they have to pay upfront for a starter kit. As soon as they pay, they soon realize there is no work.

8) MLM scams

Some multi-level marketing (MLM) opportunities are simply scams where fake companies promise that those who sign up will be paid a handsome commission to recruit others. They will also be forced to buy products from the ’employer’ to sell to future customers.

How to stay safe

Follow this list of best practice advice to stay safe from WFH scams:

· Search the company offering the job to check for any negative online reviews. In the US, the Better Business Bureau is also a useful resource
· Ask the employer many questions, such as: what is the total cost of the program; and when they will be paid, by whom and how
· Don’t assume that the job ad is legitimate just because it appeared on a legitimate website
· Do not apply for any job where earnings are dependent on recruiting others to the company
· Do not believe information on the company’s website, including testimonials from other recruits, as it can all be fake
· Do not respond to any unsolicited contact or click on links in unsolicited messages such as emails or texts
· If you want to follow up on an out-of-the-blue job offer, do some background research on the company rather than replying to the initial email

The popularity of WFH scams reflects both a worsening economic backdrop and our increasing preference for working remotely. There are jobs out there. Just be extra careful to follow up on clues.