Employment scams ranked as the riskiest scam in 2019 for the second consecutive year, according to a report released today by the Better Business Bureau.
The study also found that nearly three-quarters of those who lose money to employment scams are already in financial crisis, and do not have enough income to cover their monthly bills. In addition, more than half of people targeted by employment scams, 53%, reported being unemployed at the time of the encounter.
The research was conducted in April shortly after the Covid-19 pandemic shut down business and eliminated jobs.
“This research was timely as we found that more than half of scam targets were seeking work-from-home opportunities,” said Melisa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, which produced the report. “As more people search for flexible employment opportunities following the coronavirus outbreak, they need to know that scammers are out there in force and targeting those most in need.”
The research found that 65% of consumers reported that their “job offer” was related to becoming a “warehouse redistribution coordinator” or some similar titles involving the reshipment of packages — which often involve stolen goods. In many cases, these scammers impersonated well-known retailers like Amazon and Walmart to seem legitimate, posting jobs on major online employment platforms with few prerequisites or requirements.
The report also highlights those who are most at risk for employment scams. Students and individuals ages 25 to 34 were more susceptible and likely to be victimized, while those ages 45 to 54 and 65-plus reported higher median dollar losses. In addition, military spouses and veterans were more likely to fall victim than non-military consumers and reported losing significantly more money to employment scams.
The Employment Scams Report examines findings from an April survey of 10,670 US and Canadian consumers reporting employment scams to BBB Scam Tracker.