Scammers are targeting workers in transition. Here’s how to protect yourself.
As federal job cuts displace thousands of workers, scammers are wasting no time targeting this vulnerable group. Employment fraud — already one of the most reported types of scams in recent years — is expected to escalate in the aftermath of widespread layoffs.
According to the Federal Trade Commission, job and fake employment agency scams have nearly tripled from 2020 to 2024. Consumer losses soared to $501 million, up from just $90 million, and the number of complaints jumped from 38,000 to over 105,000.
“Scammers know people are in panic mode, eager to find work fast. That desperation makes them prime targets,” Michelle Singletary shared.
A Common Trap — Too Good to Be True
Just last week, I received a random text message:
“After reviewing your resume, we’d like to invite you to interview for the Information Systems Manager position… you can earn $50 to $500 a day.”
It was an obvious scam. I have no background in information systems, and my husband often jokes I’m a Luddite. But what if the job had seemed realistic?
That’s what happened to one semi-retired woman in Washington state, who applied for a transcription job supposedly from the Blinded Veterans Association (BVA), found through LinkedIn. With experience in transcription and a personal connection to veterans, the role felt meaningful. She was even offered a $250 training bonus.
But red flags emerged quickly: the process moved too fast, she was asked for banking info and to buy expensive equipment, and she couldn’t verify the supposed contact’s credentials.
“Even though the BVA looked legit as a nonprofit, something didn’t feel right,” she said.
“I needed at least a phone call. When I couldn’t find the hiring manager’s name online, I called the organization directly.”
She was right to be skeptical. The BVA confirmed the job offer was a scam. While she avoided financial loss, the scammer now has some of her personal information.
The Scam Became So Pervasive, the BVA Had to Act
According to Donald Overton, BVA’s executive director, hundreds of people — perhaps 500 to 700 — were tricked by the scam.
“We don’t even have transcriptionists,” Donald Overton said.“It was so disgusting and predatory.”
The scammers had refined their approach over time. Early emails were sloppy, full of typos. Later ones looked official, with forged logos and spoofed addresses. Overton believes AI may have helped create more convincing messages.
The BVA was so overwhelmed, it issued scam alerts on its website, social channels, and even recorded a warning on its phone line.
Despite being a small nonprofit with a 12-person staff, the BVA reached out to each affected applicant personally — via calls or messages.
“We didn’t want anyone to feel abandoned,” Overton said.
“People needed to know we cared. There are more scams than real jobs out there.”
Do Your Homework Before the Interview
Job seekers often overlook basic due diligence, but researching a company is essential. “Turn to sites like Glassdoor,” Andreas Jones of KindaFrugal advised.
“If the values don’t align with yours, you’re better off not applying.”Jones also warned against rushing into offers out of desperation.“Be flexible,” he said, “but know your boundaries. No job is worth giving up all of your time for.”
Jones emphasized the importance of knowing your worth and qualifications.“If you don’t meet at least 80% of the requirements, don’t apply,” he said.
And once you’re in the interview, he added, “Put your best self forward. Look the part—even on Zoom.”
In the case of remote and freelance service jobs, it is just best to adhere strictly to the terms and guidelines laid out by the respective sites, they are usually there to protect both parties.
How to Avoid Job Scams
The FTC recommends the following precautions:
- Verify listings independently. If it seems too good to be true, check the company website and call using contact info you find yourself — not what’s provided by the recruiter.
- Use AI as a fact-checking tool. I typed into ChatGPT: “Are there job scams connected to the Blinded Veterans Association?” The answer was yes — plus it provided tips on spotting employment fraud.
- Never pay to get hired. Real jobs won’t require you to pay for equipment or application fees.
- Avoid accepting checks. A common trick involves sending a check, telling you to keep part and return the rest. The check bounces — and you owe the bank.
If you’ve been scammed or shared sensitive data:
1. Report it at ReportFraud.ftc.gov and notify your state attorney general.
2. Alert your bank or financial institution.
3. Freeze your credit reports with Equifax, Experian, and TransUnion to prevent identity theft. It’s free — if someone asks you to pay, you’re being directed to a premium (and unnecessary) service.
Well, I also know It’s enraging that people just looking for honest work now have to be private detectives to protect themselves. The rise in employment scams is a sign of how bad actors prey on financial insecurity and urgency.
Let’s make sure to look out for each other — and always double-check before clicking “accept” on that too-perfect job offer.