PUEBLO — Online scams are evolving, and fraudsters find new ways to prey on people hoping to find employment opportunities.
A Pueblo man was surprised to find himself tangled up in a fake job scheme while searching for an opportunity to make extra spending money just before Christmas.
“Because it's the holidays, who's not looking for a little extra cash, a little bonus money? Ya know,” Joseph Haas of Pueblo said.
Pueblo resident Joseph Haas was scrolling through Facebook when he came across what appeared to be a golden opportunity: remote work for well-known retail giants.
“I see an ad on my Facebook saying they’ve got a lot of opportunities for these big companies. Costco, Best Buy, Macy's. You know, legitimate companies,” Haas said.
The job sounded simple. Review the products online and get paid for each completed task. But soon, the red flags started appearing.
“Each time a product showed up, I was to look at it and hit submit for the next product to show up. When each product showed up, then I would see the money getting added [into my virtual wallet],” Haas said.
After earning $96 in his virtual wallet, Haas was ready to cash out. But suddenly, the rules changed. The person communicating with him via WhatsApp told Haas he needed to earn at least $100 in his virtual wallet before he could deposit his earned money.
“And that's when I raised an eyebrow because this is a job, I'm working my first day and you're telling me now I have to put money in, in order to get money out," Haas said.
He was later told he needed to invest $60-$80.
“That’s what made me think, A: This was some sort of scam. B: I shouldn't be the only one who knows that this is a scam. People should be aware,” Haas said.
Haas is one of thousands of people tricked into participating in what the Federal Trade Commission calls a task scam.
Here’s how task scams work, according to the FTC:
Fraudsters create a fake job posting asking someone to complete sets of tasks related to app optimization or product boosting. They build trust by giving small payouts to the person's virtual wallet for doing the work. Then, they demand upfront money from the person to continue the tasks, with the promise of a larger return on their investment. However, once someone sends the fraudster money, it’s gone for good.
“If they want you to pay any kind of fee or open up a bank account, if they want you to take some kind of action, run and report it to the FTC,” said Pikes Peak State College Business professor and Artificial Intelligence Innovation Chair Dennis Natali.
Natali lists the following as red flags or signs that someone may be involved with a fake job opportunity:
- Too Good to Be True: High salary for minimal work or unrealistic benefits can signal a scam.
- Vague Job Description: If the ad doesn't clearly outline the responsibilities or qualifications required, it could be suspicious.
- Unprofessional Language: Look out for poorly written ads with spelling mistakes or awkward phrasing.
- Urgency: Scammers often create a sense of urgency to pressure you into applying quickly.
- No Face-to-Face Interview: If the company doesn't want to meet you in person or through video calls, it might be a scam.
- Request for Personal Information Early: Be cautious if they ask for sensitive information (bank details, Social Security number, etc.) before a formal job offer.
- High-Pressure Tactics: If you're being pressured to accept the job immediately, this is a warning sign.
- Upfront Fees: Legitimate employers don’t ask for money upfront for training, equipment, or processing fees.
- Suspicious Payment Methods: Scammers might ask for payments via wire transfer or gift cards.
- Promises of Unsolicited Bonuses: Be wary of promises of big bonuses or quick profits without clear work expectations.
The professor warns that these scams aren't just about stealing your money. The fraudsters are after something even more valuable.
“Information is money. It’s the new currency of business,” Natali said. AI models are ingesting all of this information. Your information is worth a lot. For example, if I can get everything about you that I can capture on a job application, that's worth almost 1,200, according to the New Jersey Business and Industry Association," He said.
Your Personal Identifiable Information or PII is any information that can directly identify a person, such as a name, address, social security number or telephone number, email address, and other information. If your PII is sold, it can bring chaos into your life, he said.
“They can buy a house in your name,” Natali said. They can sell a house in your name. They can sell your house that you’re living in. They could open credit cards, bank accounts—they can do illegal activity that’ll be flagged to you.”
So how can you do your research and protect yourself from these fake job postings and websites?
“The three best websites that I’ve found to verify if this is a legit job offer from a legitimate company are theBetter Business Bureau, Trustpilot, and Sitejabber.”
Natali said fraudsters are only going to become more sophisticated, and job seekers must stay vigilant.
“You really have to be careful with these job scams because people are going to try to steal from you,” Natali said. “They know you’re vulnerable. They know you want a job. They know it’s important for you, and you’ll do anything to get this job.”
As for Joseph, despite almost getting burned by this fake job, he’s not giving up on finding a real employment opportunity. However, as he continues his remote-job search, he plans to go about the application process differently.
“I’m not going to say no to something that’s offering me what I’m looking for. It was a virtual job I was looking for. I was looking for that stuff. So how am I not going to click on it? That wouldn't be smart. But what I am going to do is be smarter about what I click on and how much information I give them.”
Reports of task scams increased from zero in 2020 to 5,000 in 2023, according to the FTC. The number of reports jumped four times that amount to 20,000 in just the first half of 2024. Those who fell victim to the task scam lost a total of $220 million in just the first six months of 2024.
Here are the top three ways the FTC says you can avoid falling victim to task scams:
Ignore generic and unexpected texts or WhatsApp messages about jobs.
Never pay anyone to get paid.
Don’t trust anyone who says they’ll pay you to rate or like things online because it's illegal.
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