Job scams are increasingly common. Here's what to look out for.

Man in a suit and tie holding a piggy bank that is full of holes — "Be skeptical of any job opportunity you encounter online that feels suspiciously easy or lucrative" (Image credit: Peter Dazeley / Getty Images)

Landed a job offer that seems too good to be true? Unfortunately, it could be a scam. In 2023, the Federal Trade Commission (FTC) recorded "around 105,000 'business and job opportunity' scams," said Axios, with the total cost to victims amounting to a whopping roughly $450 million. Notably, said Axios, "that's more than a five-fold increase over the past five years," in large part due to the rise in remote work and the development of AI technology.

If you are on the job hunt, here's what to look out for to ensure that what looks like an opportunity doesn't end up costing you.

What are the most common job scams to watch out for?

When you're trying to land a job, it puts you in a uniquely vulnerable position, as you are hoping to impress a prospective employer. Scammers attempt to take advantage of that by getting you to share sensitive personal information, under the guise of it being important for the job.

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Some common ways scammers are trying to do that right now include:

Fake job listings. These listings on social media as well as on legitimate job websites often "ask candidates to pay a fee to complete their application or to get started in the role," said Indeed.
Work-from-home jobs. With these scams, fraudsters promise flexibility and easy income, but instead, "you end up paying for starter kits, so-called training, or certifications that are useless," said the FTC. Further, "you might also find that your credit card is charged without your permission, or you get caught up in a fake check scam."
Imposters posing as associates of a company or hiring firm. In this case, said Indeed, "imposters often ask candidates for a screening fee in the form of gift cards or a wire transfer."
Job placement and career consulting offers. Another type of job scam happens "when a person posing as a career consultant reaches out to you to praise your resume," said Indeed. In this situation, they may "either offer to improve your resume themselves or refer you to an alleged expert in exchange for a fee."

What are some tip-offs a job posting may be a scam?

To avoid falling victim to a job scam, it helps to know what red flags to look for.

For starters, said Money, "be skeptical of any job opportunity you encounter online that feels suspiciously easy or lucrative," such as "jobs that claim they'll pay you upfront before any work has been performed, as well as listings that promise high pay with minimal hiring requirements."

Another rule of thumb is to think twice if you're being asked to "send payment as part of an application," or "if you're pushed to share a lot of that info before you've even spoken with a representative of the company," said Money.

Also pay attention to how the person you're engaging with is communicating, and from where. "Another big warning sign that a job may be illegitimate is unprofessional communication," said Indeed, such as "inconsistencies in grammar, syntax and how the employer or recruiter communicates with you in writing."

Additionally, noted Money, "legitimate recruiters generally contact candidates from their work accounts, which means the company's domain name is in the email address."

How can you avoid getting scammed?

Keep these tips in mind during your job search to ensure you do not lose precious time dealing with a scam while searching for your next opportunity:

Don't give out personal information until you sign an offer and start the job. While you eventually may need to provide information like your bank account number for direct deposit or your Social Security number for tax purposes, "this only becomes necessary once you sign an employer's offer and start your new job," said Indeed. If you are asked for that information before that point, "take this as a sign to avoid this company in favor of a real job opportunity."
Do your own research about prospective job opportunities. If you come across a posting or receive an offer that seems enticing, check into the company, including its website, location and other staff members. You might even "look up the name of the company or the person who's hiring you, plus the words 'scam,' 'review,' or 'complaint'" to see if anything comes up, said the FTC.
Don't pay for a job. Last but not least, your job should pay you — not vice versa. "Honest employers, including the federal government, will never ask you to pay to get a job," said the FTC, and "anyone who does is a scammer."

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.