How to spot a job scam

How to spot a job scam

Last updated on 2nd November, 2022 at 04:52 pm

Job scams are on the rise. If you or your loved one is on the search for a new job opportunity, keep an eye out for these signs to avoid being scammed.

Reading time: 3 minutes

In this article you’ll learn:

    • The tactics scammers use to swindle job seekers.
    • Red flags to look out for on a job search.
    • How your Legal Assist and Personal Assistant benefit can help you on your job search.

Financial institutions make a concerted effort of warning their customers about scams. Perhaps less known is that scamsters are increasingly preying on job seekers by posting fake adverts on employment websites and social media. While the likes of Indeed and Gumtree do review all listings, they are dealing with high volumes, and the odd fake listing inevitably still gets through. And with no such checks in place on social media, the risk of encountering scams on platforms like Facebook and TikTok is even greater. Look out for these four signs that a crook might be trying to cheat you out of your personal information or hard-earned cash.

Job scam red flag #1: The recruiter asks for money

A surefire sign that a job advert is a scam is when the ‘recruiter’ asks you to pay to have your application processed. “It is against the law for recruitment agencies to charge the job seeker,” explains Claire Gillmer, owner of On Line Personnel. Other job postings may claim that you need to pay an ‘interview fee’, or fund a uniform or training material before starting work. These are also red flags, warns Gillmer. “If you encounter an agency asking for any sort of payment, run!”

Your Personal Assistant benefit can help you upskill by sourcing quotes for courses and other training, at the touch of a button. Learn more here.

Job scam red flag #2: The recruiter asks for confidential information

While reputable recruitment agencies do request some personal details to process a job application, including your ID number (to do a background check) and location (to confirm that you live close enough to the prospective employer), watch out for anyone who tries to solicit additional information such as your bank account details or tax reference number. “Once you have been offered the job and signed a contract, your employer will require this information for payroll and HR purposes,” notes Gillmer. But not before then.

Job scam red flag #3: No formal recruitment process is followed

Another obvious red flag is when the ‘recruiter’ offers you a job straight away, without conducting an interview or providing a letter of appointment.

“Agencies follow a set procedure when sourcing employees,” explains Gillmer. Potential candidates whose CVs are approved will always be asked to do a face-to-face (or video) interview. Successful applicants should then be given a letter of offer, which, if they accept, should be followed up with an employment contract. “If you apply for a position on a Thursday and are told you can start work the following Monday, walk away!” cautions Gillmer.

Job scam red flag #4: The recruiter doesn’t have an online presence

Claire recommends always researching the company that has posted the advert, even if it doesn’t look like a potential scam. “Reputable agencies have an online presence. This should include their physical address and – ideally – a landline phone number,” she adds. If the contact details are limited to either an email address or cell number, and you have difficulty getting hold of them or finding a good company presence when researching, beware. “Do your homework!” advises Gillmer. Validating that the advertiser is genuine is one of the easiest ways to avoid being scammed.

Been caught in a scam? As a Reality Club, Core, Plus, Health or Access for Sanlam Group Risk member, you have free expert legal support with your Legal Assist benefit. Receive guidance on legal matters, including a referral to an attorney for a free, face-to-face 30-minute consultation, letter of demand and telephone call.

Want to learn more?

We send out regular emails packed with useful advice, ideas and tips on everything from saving and investing to budgeting and tax. If you're a Sanlam Reality member and not receiving these emails, update your contact details now.

Update Now