8 Ways To Spot A Job Scam

Young woman looks at a job sheet while verifying information on her smartphone.If you’re in the market for a new job, or you’re looking for extra part-time work, be careful. The Federal Trade Commission (FTC) is warning of a surge in employment scams of every kind. Victims might have their accounts emptied, their identities stolen, or they may even find themselves facing jail time for money laundering charges.

Protect yourself from employment scams by holding up any job you’re considering against this list of red flags:

1.) The job pays very well for easy work
If a job description offers a high hourly rate for non-skilled work with no experience necessary, you can assume it’s a scam. Legitimate companies will not overpay for work that anyone can do. Carefully read the wording of the job pitch. If the deal sounds too good to be true, it probably is.

2.) The job description is poorly written
Scrutinize every word of the job description. If it’s riddled with typos and spelling mistakes, you’re looking at a scam.

3.) They need to hire you NOW!
If a “business” claims the position needs to be immediately filled and they’re ready for you to start working today, assume it’s a scam. Most legitimate businesses will need time to process your application, properly interview you and determine if you are indeed a good fit.

4.) The business has no traceable street address or real online presence
If you’ve spotted a position on an online job board, your first step should be researching the company. Google the company name to see what the internet has to say about them. If you suspect a scam, search the name with words like “scam” and “fraud” in the search string. Look for a brick-and-mortar address, a phone number and a real online presence. If all you find are help-wanted ads and a P.O. Box, move on to better job leads.

5.) You need to share sensitive information just to apply
Does the “job application” you’re looking at seek sensitive details, like your Social Security number and/or a checking account number? Such information should not be necessary just to submit an application. You might even be innocently asked to share details you think are minor, like your date of birth, name of your hometown, first pet’s name or your mother’s maiden name. Of course, these are all keys to open up access to your passwords and/or PINs.

There’s no surer sign you’re dealing with crooks than being asked to share information that practically guarantees you’ll be scammed.

6.) You need to pay a steep fee to apply
Some legitimate companies charge a nominal application fee for hopeful employees. However, if the fee is absurdly high, or the company asks you to cash a check for them and then refund it, you’re being scammed.

7.) There’s no business email
Some job scammers will impersonate well-known companies to look authentic. For example, you might think you’re applying to an off-site job at Microsoft. You’ll be told to email your resume to JohnSmithMicrosoftHR@gmail.com. Your red flag here is the email address: The domain is generic. If the “recruiter” genuinely represented Microsoft, the email address would be something like JohnSmith@HR.Microsoft.com.

8.) The “recruiter” found your resume on a job board you never use
If the “recruiter” claims they’ve picked up your resume on a job board you don’t remember visiting, it’s not your memory failing you. Job-scammers often scrape victims’ personal details off the internet and then pretend to have received a resume. They’ll know you’re looking for a job, and they’ll know enough about you to convince you they’ve got your resume, but it’s all a scam. If someone contacts you about a position you’ve never applied for, or claims to have found your resume on a job board you’ve never visited, run the other way!

As always, practice caution when online. Keep your browser updated and strengthen the privacy settings on your social media accounts. When engaged in a public forum, don’t share information that can make you vulnerable, like your exact birthdate or employment history. Never wire money to people you don’t know well or agree to cash a stranger’s check in exchange for a commission. Above all, keep your guard up when online and use common sense: When in doubt, opt out!

Your Turn:
Have you been targeted by a job scam? Tell us about it in the comments, below!

SOURCES:
https://www.consumer.ftc.gov/features/scam-alerts

https://www.job-hunt.org/onlinejobsearchguide/job-search-scams.shtml

https://www.whatismybrowser.com/guides/how-to-be-safe-online/why-should-i-update-my-web-browser

Simple tips for protecting your parents from financial fraud

daughter helping elderly father check his account onlineAccording to the Federal Trade Commission, older adults are disproportionately affected by fraud.

Whether it’s a phony phone call, phishing scam, or mail fraud, seniors often become targets for scammers who perceive them as easy marks.

While you alone can’t put an end to this shady illegal activity, you can empower you parents with the knowledge to keep themselves—and their finances—safe.

Remind them about “stranger danger”
Your parents probably taught you the concept of “stranger danger” at an early age—and for good reason. Don’t interact with suspicious people. It’s an important lesson that’s relevant to adults as well as children.

If someone you don’t know asks for personal information, it’s probably a scam. Remind your parents to never give out credit card or account information, passwords, or social security numbers unless they can verify the identity of the person or business making the request.

Add their number to the Do Not Call List
When you add your phone number to the The National Do Not Call Registry, the government informs telemarketers not to call you.

Unfortunately, unscrupulous organizations and scammers ignore the registry and may continue to harass your parents, but they should see a reduction in unsolicited calls and text messages from those who abide by the law.

Give them a crash course in online literacy
If your senior parents use technology but aren’t completely familiar with how scams work online, they might not understand what to click and what to avoid.

Spend some time going over how to navigate the internet safely. Most importantly, explain email phishing. Emphasize that they should never click links in unsolicited emails from people or companies they don’t know.

If they use social networks like Facebook, warn them not to share anything too personal as scammers might use this information to impersonate friends or family members online.

Used with permission. © 2019 BALANCE. All rights reserved.

Are P2P Payment Systems Safe?

Close-up of the hands of four people holding smart phonesP2P payment services, like Venmo, Zelle and Square’s Cash App, are aiming to make cash obsolete – and some would contend they’re succeeding! Just a few quick swipes, and you can transfer funds to a friend, pay for an item you bought online or collect money that’s owed to you.

Convenient as they are, P2P payment systems have unfortunately become a breeding ground for scams and hacks. From compromised accounts to fraudulent transactions, using a P2P service opens you to some risk of losing your money to a scammer.

Read on to learn how to better protect yourself from a P2P payment scam.

How do P2P payment scams happen?
There are lots of ways using a P2P payment system can put you at risk, but the following two vulnerabilities are most common:

1.) The bogus buyer
In most cash-transfer apps, when you receive a payment, the money goes into your P2P system balance and stays there until you transfer it to an external account or use it to pay for another transaction. This transfer usually takes one to three business days to clear. Crooked scammers are taking advantage of that “float” in the transfer process to con you out of your money.

Here’s how it works:
A scammer will contact you about an item you’ve put up for sale or tickets to an event. Together, you’ll arrange for an exchange of funds and goods. You may even take precautions against a possible scam by insisting on an in-person meeting for the exchange or refusing to send out the item until you see the money in your P2P account. Things proceed according to plan. You’re notified that the money has been sent to your account and you hand over your item. Sadly, you won’t realize you’ve been ripped off until a few days later when the money transfer does not clear and the contact has disappeared with your goods. Unfortunately, there’s no way you can get your money back, because most P2P providers will not offer compensation for a fraudulent sale. Similarly, your linked financial institution bears no responsibility for the scam and can’t help you recoup the loss.

2.) Publicized payments
PayPal’s Venmo is the only P2P app with a built-in social networking component. This feature has led to a host of privacy issues that have been brought to the attention of the Federal Trade Commission (FTC).

In short, every Venmo transaction you make is up for public scrutiny. No one can access the payment amounts, but anyone who is interested can track the restaurants where you like to eat, the clothing stores you most frequent and check out when you last filled your gas tank. Creepiness factor aside, all that information going public makes Venmo users super-vulnerable to scammers and identity thieves.

Venmo allows you to tweak your privacy settings to keep your information from going public, but most people are unaware of the issue and/or neglect to take this measure. Recently, the FTC ruled that Venmo must make this detail clearer to users. Venmo has since created a popup tutorial for all new users demonstrating how to adjust your privacy settings to keep your transactions from going public. If you choose to use Venmo, check your settings to be sure your money habits aren’t being broadcast for the world to see.

Protecting yourself
You can keep your money safe and still enjoy the convenience of cash-transfer apps with these simple steps:

  • Only send money to people you know and trust.
  • Never use a P2P service for business-related transactions.
  • When using Venmo, adjust your privacy settings and opt-out of public tracking.
  • Carefully read the terms and conditions of a P2P service before using.
  • Always choose two-factor identification and use a PIN when possible. If your app and phone allows, choose fingerprint recognition and/or touch ID for added protection.
  • Accept any security updates offered by the P2P app you use.
  • Check your recipient’s information carefully before completing a money transfer.
  • Choose to be notified about every transaction.
  • Link an external account instead of keeping your funds in the P2P account.

Your Turn:
Do you think P2P systems are safe? Why, or why not? Share your take with us in the comments.

SOURCES:
https://triblive.com/business/technology/13358843-74/peer-to-peer-apps-come-with-risks-ftc-warns

https://www.consumer.ftc.gov/blog/2018/02/tips-using-peer-peer-payment-systems-and-apps

https://paymentweek.com/2018-3-30-problems-p2p-mobile-payments/

https://www.ftc.gov/news-events/events-calendar/2016/10/fintech-series-crowdfunding-peer-peer-payments

https://www.lexology.com/library/detail.aspx?g=9efa141a-40d2-4773-b930-bb395111d226

https://www.consumerreports.org/scams-fraud/how-to-protect-yourself-from-p2p-payment-scams/

 

5 Ways To Avoid Credit Fraud

Middle-aged red-haired woman in modern studying credit report witha look of concernkitchenHere are five ways that you can avoid credit fraud.

  • Keep your credit cards safe. Store your cards in a secure wallet or purse. After making a purchase, immediately return your card to that place.
  • Don’t allow websites to “remember” your card number. Only let secure payment portals, like GooglePay and PayPal, remember your card number. An even better practice is to never check the “remember card number” box for any site or portal.
  • Be wary when shopping online. Before using your credit card online, verify the site’s security and that the URL is authentic—there’s an “s” after the “http” in the web address, and a lock icon as well.
  • Report lost or stolen cards immediately. The sooner you report a missing card, the less liability you’ll have for fraudulent charges made with your card.
  • Review your monthly bill. Always look through your monthly statement to check for suspicious account activity.

Your Turn:
How do you avoid credit card fraud? Share your own tips with us in the comments.

Student Loan Scams

Hand holding a small, white, porcelain piggy bank with "student loan" handwritten on the side.Scammers will try anything to fool college students into parting with their money. Don’t get hooked! Here’s what you need to know about three popular student loan scams.

1.) Student loan forgiveness scam

In this scam, a student loan debt company will contact you offering to forgive your student loan for a fee.

Sounds like a dream? Unfortunately, it’s more like a nightmare. No student loan company would completely forgive your loan, even for a fee. You’ve just been targeted by a scam.

This scam attempts authenticity by sounding like Public Service Loan Forgiveness, a legitimate federal government program for public servants with federal student loans. If you fall for the scam, you’ll still need to pay off your loan, plus you’ll lose the money you shelled out for the “fee.”

2) Student loan consolidation scam
In this scenario, a student loan company will promise to consolidate your loans and lower your monthly payments, all for a fee.

Here’s your clue that this is a scam: Though some institutions can refinance student loans, only the federal government has the power to consolidate it. And they’ll do it for free.

If you’re looking to consolidate your student loans, check out Studentloans.gov.

3.) Student loan tax scam
In this con, a scammer will spoof the IRS’s toll-free number, claiming the student owes thousands of dollars for a “federal student loan tax.” The scammer will demand immediate payment upon threat of arrest or a lawsuit. They’ll also insist on a specific method of payment, like a wire transfer.

Here’s the deal on this scam: The “federal student loan tax” does not exist. Also, the IRS will never contact you by phone without first notifying you via mail, and they won’t demand payment over the phone or insist on a specific payment method.

If you’re targeted
If you’re targeted by a student loan scam, don’t engage with the scammer. Hang up as soon as you recognize it and delete any suspicious emails that land in your inbox.

Next, bring the scam to the attention of the authorities. File a complaint with the FTC at ftc.gov, alert local law enforcement agencies and report any tax-related scams at IRS.gov.

Finally, be sure to warn your friends about a circulating scam.

Your Turn:
Have you been targeted by a student loan scam? Tell us all about it in the comments.

SOURCES:
https://typicalstudent.org/hot/your-money/3-popular-student-loan-scams-2019

https://thecollegeinvestor.com/317/top-student-loan-scams/

https://www.google.com/amp/s/www.forbes.com/sites/zackfriedman/2019/01/21/student-loans-scams/amp/