The main point
Fraud under the guise of employee recruitment continues to increase. Be wary of job offers that seem far-fetched.
Fake job listings usually have three common characteristics: high salaries, flexible work arrangements, and minimal work experience.
Report fraud targeting you to authorities, change compromised passwords, and freeze any accounts if you have transferred money.
Employee recruitment fraud continues to increase. Protect yourself from scammers by learning how to identify and report fake job postings. Read more in the latest installment of the Know Your Scam series!
Although job fraud has been around for a long time, there has been a recent increase due to the pandemic which has had a serious and long-lasting impact on the job market. Fake job openings offer flexible schedules, the opportunity to work from home, and salaries well above industry standards — all while requiring little to no skills or previous work experience.
Don't be fooled by unrealistic promises — no job is ever easy or perfect. Chances are, the person offering you your “dream job” will someday ask you to deposit money before you can enjoy the promised benefits – and then disappear with your funds.
Read on to learn how hiring scams typically work, including the four-step process fraudsters often use and real-life examples we present.
The Four Step Process of Fraud by Fake Recruiters
Find it
Scammers offering jobs usually search for potential targets through messaging apps, social media or professional networking sites. Job advertisements or direct offers often have three common characteristics: attractive salary, short or flexible working hours, and no professional skills or experience required.
These “jobs” can be simple tasks like making hotel reservations, posting fake reviews, or liking products on e-commerce platforms.
Gain Confidence
Once someone responds to the job posting, the scammer will respond with job details — just like a real recruiter would. At this stage, it is very important for potential victims to pay close attention to how "HR" describes the job.
For example, fraudsters may introduce a platform, where victims have to register and complete tasks. In some cases, the platform can also be equipped with VIP tiers. If you reach that level, there will be higher wages, commissions and rewards for inviting people to join. Advanced fraudsters will go so far as to “legitimize” the fraud by providing forged company registration documents.
In order to gain the victim's trust, the fraudster may even pay the victim a small amount of money to complete some simple tasks. However, these payments are merely bait to lull victims into believing that the arrangement is legitimate.
Persuade
At some stage, the fraudster will ask the victim to deposit funds for reasons related to their “work” relationship. For example, payment may be required to reach a higher VIP level on the platform, which comes with additional rewards. Scammers may also attempt to persuade victims to recruit their friends and family, further increasing losses.
Close
In the final stage, victims will suddenly face problems in receiving payments. Fraudsters will concoct various excuses, such as skipping tax payments or asking for minimum withdrawal fees, to persuade victims to deposit more funds.
Ultimately, once the victim starts to notice or loses large amounts of money, the fraudster will close the platform and cannot be contacted.
See Examples of Fraudulent Actions
The user, let's call him Mark, was contacted by a recruiter via WhatsApp.
The recruiter told Mark that a London-based digital marketing company was offering a high-paying part-time job (~1000 USDT per week) paid via an encrypted wallet.
The recruiter also stated that this job only requires minimal skills, provides flexible rules, and only requires Mark to have a cell phone that can be used with cellular data.
Mark, intrigued by the job description, followed the recruiter's instructions and signed up for an account on their platform. The recruiter informed Mark that he had to deposit 500 USDT to get the first 40 assignments, and Mark did so. After completing these tasks, Mark realized that he could not withdraw his money from the platform. Then, the fraudster asked Mark to pay an additional 1000 USDT to get back the funds he had deposited.
Mark realizes that the "job" is a scam, but it's too late.
To summarize, here are the main red flags of this finding:
The fraudster made initial contact with Mark through non-formal channels such as WhatsApp.
The “jobs” offered appear easy and require no professional skills or experience.
Flexible working arrangements allow Mark to work from wherever he wants.
The pay is very high (100-300 USDT per day) for tasks that are not very important.
How to Protect Yourself from Employment Scams
Do Your Own Research (DYOR)
Make sure that the email address you contact belongs to the actual company. Fraudsters tend to use free email services such as Gmail, Hotmail, or Outlook. Fraudsters tend to use free email services such as Gmail, Hotmail, or Outlook. Some may use Telegram, Instagram, or Whatsapp, all of which can be seen as less “formal” communication channels and are not commonly used by real recruiters.
Next, do some research on the “company” and its website. If a website has a bad interface and requires you to register to learn more, don't click anything and just leave.
Be wary of unrealistic job offers
Think twice about job offers that seem unbelievable. Job offers that promise easy work, fast money and an unreasonable level of flexibility are unrealistic and most likely a scam.
Pay attention to jobs that require a deposit
Employees should not pay work-related expenses from their personal funds, especially through anonymous and irrevocable crypto transactions. No legitimate company will charge you for any reason.
If the “recruiter” asks for a deposit fee in exchange for your salary — don't do it. Fraudsters use textbook methods to manipulate victims into handing over their money.
Pay attention to the details of the information requested from you
Be careful with any personal information asked of you, such as your driver's license, passport, or social security number, during the "interview." A recruiter asking for such sensitive information early in the interview process will definitely trigger suspicion in you.
Be wary of jobs that don't have prerequisites
The right job, especially a high-paying one, will have prerequisites.
If a job offer does not require an interview, resume, or demonstrate relevant experience, and the recruiter forces you to accept the job immediately followed by a quick onboarding, it is most likely a fake job offer.
If You Have Been a Victim of Fraud
Being a victim of fraud can be devastating, but the damage may not be over if you don't act quickly.
File a report with local authorities, block the scammer's contacts, and change your cell phone number if necessary. If you have already sent money, freeze your financial account and change your password immediately.
If you transact with fraudsters through your Binance account or believe that your account has been compromised, immediately file a report with our Help Center.
Further Reading
(Academy) 8 Common Bitcoin Scams and How to Avoid Them
(Blog) Know Your Scam: Fake Crypto Investments to Watch Out for
(Blog) Know Your Scam: The Ultimate Guide to the Most Common Crypto Scams
(Blog) Binance Partners with Law Enforcement Agencies to Launch Joint Campaign Against Scams
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