Job hunters are being warned about a wave of recruitment scams that cost victims $150.4 million in just the last quarter of 2025, according to the Federal Trade Commission.
The FTC recorded 25,002 reports of business and job opportunity-related scams in that period, with a median loss of $2,000 per victim. With hiring slow and unemployment sitting at 4.3%, scammers are targeting desperate job seekers, including recent graduates entering the workforce for the first time.
Here is a breakdown of some common recruitment scams and how to spot them.
Fake onboarding scams
Scammers create phony businesses or pose as well-known companies to post job listings. When you apply, you are quickly asked for personal information, including Social Security numbers, bank routing information allegedly for payroll, and copies of your ID. That information is then used to steal both your identity and your bank account.
This scam is an especially dangerous scam because legitimate employers also require these documents during onboarding.
Social media task scams
Most often found on TikTok and Instagram, these scams lure victims with promises of high pay for simple tasks such as liking videos or clicking links. Victims are typically contacted by unknown profiles or text messages and promised quick, easy cash for minimal effort. In many cases, scammers add victims to group chats where other users share fabricated "proof" of earnings to make the scheme appear legitimate.
The scam works by asking victims to complete small tasks, then charging a fee to unlock higher earnings or withdraw money already made. If you do send money, the scammer either blocks you from further contact or tries to bilk you out of more funds by demanding additional money for processing fees. If you fall for it, you are out even more money.
Work-from-home equipment scams
In this scam, victims receive a fake job offer for a remote role and are told they must pay upfront for equipment like a laptop or company phone, with a promise of reimbursement after the job officially starts. Scammers either request money directly via bank transfer for the equipment or send links to phony websites designed to look like trusted company suppliers. Because equipment like laptops and phones are expensive, these scams can result in losses of hundreds or even thousands of dollars.
Legitimate employers will almost never ask you to pay up front for equipment.
Background check scams
One of the most common recruitment schemes involves being offered a fake job and then being asked to pay upfront fees for a background check. Scammers may send links to fraudulent websites to collect payment, and trick you into revealing personal and financial information, leading to financial losses and potential identity theft.
While some employers may require candidates to cover the cost of a pre-employment drug or background screening, the fee is typically deducted from a first paycheck rather than required as an immediate upfront payment. If an employer insists on an upfront fee, research the company through the Better Business Bureau or verify that the screening is being handled by a reputable third-party firm. Most legitimate employers use established consumer reporting agencies that comply with the Fair Credit Reporting Act. You can verify a screening company's legitimacy by checking whether it is a member of the Professional Background Screening Association.
Red flags to watch for
- recruiters that contact you using free email domains like @gmail.com instead of a company address.
- contact and interviews are solely conducted by email, text or on social media sites.
- recruiters that urgently push for you to supply personal or banking information
What to do if you are scammed
If you think you have been scammed, contact your financial institutions immediately to cancel any credit cards or accounts that may be compromised.f
If you gave a scammer your Social Security number, closely monitor all of your financial accounts for suspicious activity and file reports with the Federal Trade Commission's reportfraud.ftc.gov and the IC3.gov it is the FBI's Internet Crime Complaint Center.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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