Unemployment’s Unfortunate Side Effect: Job Scams on the Rise Amid Economic Turmoil

CXOToday has engaged in an exclusive interview with Mr. Kartik Narayan, CEO-Staffing, TeamLease.

1.       A look at the current state of unemployment and how it has contributed to an increase in job scams.

Scammers are increasingly preying on vulnerable job-seekers online as a result of rising inflation and a severe unemployment situation. According to CMIE, India’s average unemployment rate is over 8% as of July 2023, and it’s about 9.5% in metropolitan regions. During periods of high unemployment, competition for available jobs tends to intensify. Con artists capitalize on the growing need for work by advertising jobs that don’t exist but that seem appealing to the unemployed.

2.       What types of job scams are most prevalent during this period of economic uncertainty? Are there any emerging trends in the world of job scams that the public should be aware of?

·         One of the most common is the “work-from-home” scheme, in which con artists promise you easy riches in exchange for your personal information. In most cases, the promised task never materializes once an upfront payment is made for training or equipment.

·         Another scam involves fictitious job openings. Scammers will create their own job board websites or use existing ones to post phony job openings, then ask for money to cover application costs or background checks. Sometimes con artists would even go so far as to arrange fake interviews to get at your private data.

·         Job postings that guarantee work, pay more than is reasonable, or demand little in the way of effort or qualifications are almost certainly fraudulent.

3.       How are job seekers being targeted by scammers, and what tactics are they employing to lure them into their traps?

Scammers lure vulnerable job seekers with promises of big monthly salaries, but they never deliver. Before beginning work or within the first few months, they scam candidates into paying a security deposit for services they never provide. The victims suffer monetary loss either shortly before or after beginning employment. Scammers frequently use fictitious identities and email addresses to make their offers seem more legitimate, and it doesn’t take much effort for them to establish fake job advertisements and websites that look legitimate. They make contact with the victim via instant messaging services like WhatsApp or Telegram, pretending to be from a respectable organization and giving them part-time work. The victims are then recruited into Telegram groups and given menial tasks like liking videos on YouTube, following celebrities on Instagram, reviewing movies, or making online purchases. The con artists build the trust of their victims by returning relatively little amounts at first.

4.       What industries or job sectors are especially vulnerable to these scams?

·         Banking and Financial Services Industry

·         Ecommerce Industry

·         Entertainment Industry

5.       Is there anything specific that job seekers should look for to identify potential scams? What precautions can job seekers take to avoid falling victim to these scams?

·         Not committing time or money into a work-from-home opportunity or online business without first thoroughly investigating the integrity of the offer.

·         Not giving personal information or engaging in financial transactions or investments that one didn’t initiate because of unsolicited texts or emails.

·         Passwords, credit card details, Aadhaar numbers, and other identifying information should only be given out to verified parties.

·         Be wary of bitcoin schemes; if you’re considering cryptocurrency investment, arm yourself with knowledge on the risks and best practices involved.

·         Take the required steps to protect yourself and your money if you come across any fraudulent or suspect online activity, and report it to the police or the Cyber Crime Cell.

6.       Is there a demographic group that appears to be more targeted by these scams, and if so, why?

·         Recent college graduates, retirees, and others who are trying to juggle job and family responsibilities, especially women wanting to return to work . 

·         Immigrants and overseas students seeking career possibilities in a new country may be a target because they may be unfamiliar with local job markets and regulations.