Financial Job Scams Rise in a Bad Economy

The economy may be slow, but thieves may be using these times to take advantage of unsuspecting individuals. The FDIC wants consumers to be aware of some common job schemes being reported, followed by tips that may protect you.

Work-at-home scams: Thieves prey on people who have lost their jobs or need extra cash by sending unsolicited e-mails and running advertisements on the Internet. The ads offer flexible, easy part-time jobs that allow you to work at home. These jobs usually involve a lot of pay for doing very little. Examples include processing payments or shipping items. According to the FDIC Consumer news, a lot can go seriously wrong with these supposed employment opportunities. This company may steal your identity and commit fraud by obtaining your bank account and Social Security numbers, perhaps as part of a fake job application. Or, you could face major losses if your new boss requests that you deposit a check or electronic transfer into your bank account and wire funds out of your account. Later your bank tells you that the original deposit was bogus and you’re responsible for the money. For more information about work-at-home scams and a complaint form, go to www.IC3.gov, a web site established by the U.S. Department of Justice and the National White Collar Crime Center.

Mystery shopper scams: It’s common for businesses and consulting firms to pay consumers to shop at their retail locations or dine at their restaurant. The mystery shoppers are then required to submit confidential reports about the experience. But fraudulent individuals are cashing in by setting up fake mystery-shopping programs that look very real, including job applications and professional-looking web sites. They are then convincing new hires to wire money using funds from their own checking account. Here’s a typical scenario according to FDIC Consumer News. Your first assignment as mystery shopper is to deposit a $2,000 cashier’s check into your bank account, supposedly to cover a $1,900 purchase you’re about to make for your new part-time job, plus a $100 advance payment for your services. You’re then instructed to withdraw $1,900 in cash from your bank account, take it to a particular store to have the funds wired to a person in Canada. Later, you’ll go home and fill out an evaluation of the store’s money-transfer service. Eventually, the cashier’s check you deposited will be returned as counterfeit, and you will be responsible for the money you withdrew from your account.

What can you do? To learn more about common financial frauds and how to protect yourself, visit www.mymoney.gov/scams.shtml, a site dedicated to financial education and sponsored by the FDIC. You can also research companies by visiting the Better Business Bureau web site (www.bbb.org).
Trust your instincts and be cautious before you commit to any work-at-home job that may seem too good to be true. If you want to work at home, determine what your strengths and interests are as with any other job search. Then, try to find ways that you may be able to earn extra money at home. For example, consider baby-sitting or pet sitting for families in your community. If you have computer or data-entry experience, consider using your home computer as an employment tool. Companies who ask for money in order to provide you with work should trigger a red flag.