A scam with far-reaching consequences
The situation that played out in Las Vegas in late January isn't exactly new. The Better Business Bureau (BBB) reports that, each year, an estimated 14 million people are affected by job scams, resulting in $2 billion in direct losses annually.
In addition, a report by the Identity Theft Resource Center found that in 2023, job scams rose 118% from the previous year.
Scams like the one above typically play out similarly. A so-called employer posts openings and charges job seekers a fee to apply. They then take the money — along with applicants' personal details — and make a run for it.
In this case, word got around about the scam through social media and the community.
A number of applicants "believed that they were victims of a scam and spread the information about the scam through social media, which caused a large number of other victims to arrive at the business," Metro Lieutenant Erik Perkett told 8 News Now.
But the issue is not just that criminals have taken money from the victims who thought they were applying to work for Amazon. A potentially bigger problem is that these criminals now have the victims' Social Security numbers.
Once a criminal gets access to personal data like that, they can use it to do all sorts of underhanded things, from opening credit cards in the victims' names to filing tax returns in their names and stealing their refunds.
The victims have faith that the police will catch the criminals who organized this scam. And law enforcement made a point to confirm that based on their investigation, the business had no actual affiliation with Amazon.
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Explore better ratesHow to avoid an employment scam
In 2022, Americans lost $367 million to business and job opportunity scams, according to the Federal Trade Commission. The median loss for those impacted was $2,000 — not a small sum of money, especially when compared to the median $650 loss for all types of fraud that year.
To avoid falling victim to a scam, it's important to know what red flags to look out for. First and foremost, it should not cost you any money to apply for a job. If a potential employer asks for an application fee, the BBB says it’s most likely a scam, so you may want to run the other way.
You should also know that while employers can request a Social Security number on a job application, it's not necessarily appropriate for an initial screening.
If you're offered a job, it's common for employers to do a background check in the course of the onboarding process that may require your Social Security number. But that's something that should happen after several interviews.
You should also be wary if a company requires you to make a specific purchase to become employed. For example, you may be asked to send money in exchange for equipment they’ll ship to your door. That’s another big red flag.
Along these lines, you should not have to enter bank account information in order to apply for a job. Once you’re hired, you’ll typically be asked to share banking details so your paychecks can be deposited into your account. But you shouldn’t give away banking details up front.
And although it's common to find job listings online, sometimes scammers will send direct emails or text messages offering fake employment opportunities to victims. Don't respond to any unsolicited offers.
Also, if you see a job posting that interests you on a third party site, aim to verify it with the actual employer in question.
Say you see a work-from-home opportunity to do Amazon customer service on a job listing site. Rather than applying through that site, go to Amazon directly and see if you can apply through their job page.
Finally, trust your gut. If a job opportunity seems too good to be true, it’s probably a scam. And even if the offer isn’t fantastic, if something about it seems off, you’re better off investigating before moving forward, or just plain moving on.
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