What Should I Know about Employment Fraud and Job Scams?

When your livelihood is threatened — either through your own job loss or that of a family member — you’re at your most vulnerable, whether emotionally, financially, or socially. You may feel tempted to explore ways to provide for your family that you wouldn’t consider otherwise.

Make Money Now Offers
 

The Internet is littered with “make money now” offers. Many arrive directly in your e-mail box. Be cautious about any job offer or job-finding services that promise great returns or financial rewards, especially if they require money.

Starting a Business
 

Avoid starting a business not related to your career or investing in a franchise, home-based business, or other type of business that requires an initial cash investment. Many are not legitimate, few will turn out to be lucrative, and an economic downturn is not the time to take such risks.

Work-at-Home Businesses or Scams
 

Beware of “work-at-home” businesses. Below are signs that a work-at-home posting is a scam:

• If you must buy materials and supplies, sometimes costing thousands of dollars, it’s not legitimate.
• If you must share important personal information (Social Security number, date of birth, credit-card number and expiration date), it could be an identity thief.
• If you must purchase a “guide” or other kind of instructional manual, video, or DVD, or send money for a list of names (for envelope stuffing), you’ll only be stuffing the pockets of the scammers, not your own.
• The ad guarantees huge profits, part-time work, yet requires no experience.

Get-Rich-Quick and Pyramid Schemes

Avoid get-rich-quick schemes and pyramid schemes. If you can answer yes to any of these questions, it probably is a scheme:

• Do you have to pay a small amount of money to a number of people to participate?
• Are you then required to recruit more people to do the same?
• If you are required to buy product, does the company have a “no-return” policy?
• If your bonuses are based on the number of people you recruit rather than the amount of product you sell, you’ve identified a pyramid scheme. Pyramid schemes are frequently illegal and never lucrative.

Reviewing Your Resume

Instead of paying for a resume review service, have a knowledgeable friend critique your resume and use your personal network to find a new job. Don’t be lured into paying for those services.