Key takeaways:

  • Fraudsters, usually pretending to be recruiters, mainly reach out through WhatsApp, text messages and social media.
  • These fake jobs are always extremely high paying for minimal effort and are usually work-from-home.
  • Crypto job scams are often used as a way to get targets to launder money by e-transferring funds and then asking them to convert the funds into cryptocurrency to transfer them to a third-party.
  • Protect yourself from job scams by avoiding job postings that seem too good to be true and don't respond to vague messages from unknown numbers.

Being conned out of your hard-earned money sounds, and is scary, but staying informed and prepared can help you avoid being lured in by job scammers.

Sadly, job scams are becoming frighteningly more common.  The Canadian Anti-Fraud Centre reported in 2022 that Canadians lost $7,115,019 in job scam cases, with an average loss per person scammed of $4,253.1 The rapid rise of artificial intelligence (AI) has made it easier for fraudsters to identify potential targets, create sneakier scams and reach more people quickly.

If you do receive a random text with a job opportunity that seems too good to be true, trust your instincts— don't click on anything or share your info. Report it and spread the word. 

What is a job scam and how does it work?

Most job scams are designed to steal your information, trick you out of your money or use you as a mule to launder money. Criminals can get your number from the dark web, where fraudsters sell private information, or from a number generator that auto-dials a random combination of numbers. Another way is to "web scrape," which uses AI to search the internet for phone numbers on directories and social media.

Criminals will reach out advertising simple work-from-home jobs that earn fast money— like mystery shopping, reshipping, reselling merchandise, boosting product reviews online or being a virtual assistant. If you know what to look out for, you can avoid falling for one of these scams.

Unlike swindlers of the past, modern scammers have a broader reach and are more manipulative. They play the long game to lure you in and build trust. Some spend time training you with simple tasks and even pay small amounts for this work, making the job seem legitimate. 

Once they've locked you in, they do one or more of the following:

  • Phish for sensitive information like your Social Insurance Number (SIN), bank account details or a photo of your driver’s license.
  • Send counterfeit cheques to buy supplies and equipment or “pay a client” and then ask for a portion back. The cheque will later bounce, and you’ll take the loss.
  • Ask you to invest or participate in bonuses that involve spending your own money.

Different types of job scams and how they reach you

WhatsApp job scams

WhatsApp has emerged as a popular way for job scammers to contact people because they use AI to spam many people at once. 

An immediate red flag is receiving a message from an unknown number offering unreasonably high pay for a simple task. They may try to bait you with a friendly introduction like, “Hi, this is Ellie. Are you interested in a job?”

If you reply, they’ll describe a low-effort job. Then, after a short interview (or no interview at all), the company will “hire you,” and the scam process begins. 

Crypto job scams

The Canadian Anti-Fraud Centre warns that fraudsters have also started using cryptocurrencies like Bitcoin and Ethereum in these scams.

They start just like a typical job scam, but they offer to pay you in a cryptocurrency like Bitcoin or Ethereum, which you won’t be able to withdraw. 

Some criminals will trick you into money laundering under the guise of the job title “payment processor.” They e-transfer you the money and ask you to convert it into a cryptocurrency, which is hard to trace, to “pay a client.” The money they send you usually comes from other people who've sadly fallen for a scam.

To avoid crypto job scams, refuse to accept payment in cryptocurrency and never consent to convert funds into crypto for a third party. Also, never share your “seed phrase” (the Secret Recovery Phrase required to access your crypto wallet).  

Employment fraud through staffing agencies

Fake recruiting is one of the more elaborate methods to take advantage of job seekers, which may make them harder to detect.

There are two ways scammers do this:

  • They post fake jobs on real employment websites like LinkedIn, Indeed or ZipRecruiter.
  • They contact a job seeker with a profile on an employment website.

These reputable job boards try to eliminate fraudulent listings, but many still get through. Be aware that just because a job is listed doesn’t mean it has been verified.

Remember, legitimate recruiters are happy to chat on the phone and have a real person answer questions. They won't only communicate by text, WhatsApp or social media message chains. 

How to avoid job scams

While you may not be able to stop them from contacting you, job seekers can take a few simple steps to avoid job scams and verify the authenticity of jobs. The best move is to ignore any text from a scammer, never reply and always block that number. If you respond, scammers may see you as an easy target and share your number with other criminals.

Some red flags to watch out for:

  • Unsolicited and vague messages through WhatsApp, text or social media
  • Recruiter emails that come from free accounts, such as Gmail, Hotmail or Yahoo
  • A recruiter using incorrect or unnatural spelling and grammar
  • Interviews conducted on WhatsApp or no interview at all
  • No job requirements
  • A recruiter asks for sensitive, personal information before you're hired
  • A recruiter asks you to open a new bank account, deposit cheques or receive payment in cryptocurrency 

Do your own digging before accepting a job offer

Before you move forward with a job, do your research.

  • What’s the company’s name and address?
  • Can you contact a real person on the phone?
  • Do they have a local number?
  • Can you find the job advertised on verified job boards or the actual company website?
  • Does the company have an active social media presence?
  • When you search LinkedIn, do you see other real people working for them?
  • Do an internet search with the company name and the word 'scam' to see if anything comes up.

If you do fall for a job scam, immediately contact your bank, your local police, and report it to the Canadian Anti-Fraud Centre.

Learn how to protect yourself from scams today

English