Beware of a Work at Home Scam

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Remote work has never been more popular. In many roles, you can attend high-level corporate meetings, close on important deals and put in a full day’s work, all without changing out of your sweatpants.

Unfortunately, though, the rise of remote work has also led to a rise of work-at-home scams. These scams come in several different forms, but each one is designed to con job-hunters out of their money and their information. Here’s what you need to know about work-from-home scams and how to avoid them.

What is a work-at-home scam?

There are several variations of the work-at-home scam:

1. Reshipping scams

Here, a job recruiter will ask individuals to fill the position of “quality control manager.” The job involves receiving packages at home, discarding the packaging and receipts and then reshipping them to a new address. Of course, this is not an actual job and you’ll never receive a paycheck for your work. Instead, you’re being used as a clearinghouse for a ring of scammers and you may be accountable by the law if the scam ring gets busted.

2. Mystery shopper scams

Getting paid to shop sounds like a dream job, but a mystery shopping scam is more of a nightmare. In this ruse, scammers create fake e-commerce platforms and mystery shopper roles that require individuals to purchase items to get reimbursed later. Unfortunately for the victim, the promised reimbursement never comes. Instead, scammers will steal credit card information during these transactions and then commit fraud using the victim’s details.

3. Virtual assistant scams

Here, a scammer will post a job listing for a virtual assistant. The victim will agree to take the job and they’ll be given some useless work to perform at home. When payday arrives, the “employee” will receive an inflated paycheck. They’ll be instructed to cash the check and mail back the surplus to their “employer” via prepaid gift card or money transfer. Unfortunately for them, within a few days the paycheck will bounce and the victim will realize they’ve been scammed.

4. Envelope-stuffing scams

In this scam, you’re asked to fill a position stuffing envelopes for an alleged company. First, though, you’ll need to pay a sizable sum for supplies. Unfortunately, the position doesn’t actually exist and it’s all a ruse for the scammer to collect the fee from you before disappearing.

5. Government and postal job scams

Here, an advertisement will provide information about an alleged job with the federal government or U.S. Postal Service. The company behind the ad will be more than happy to assist you with one of these jobs — as long as you pay the fee. Of course, this is a scam, and there’s never a need to pay a fee to apply for a job with the federal government or USPS.

Red flags

Here’s how to spot a work-at-home scam:

Upfront fees. Legitimate places of employment will not ask you to pay for your own training, supplies, materials and/or for a job application.
Vague job descriptions. If you’re not quite sure what your own role will be in the company, and no one can clarify it for you, you’re likely looking at a scam.
Unsolicited job offers. If you receive a job offer without applying, such as through email or social media, it may be a scam. Always verify the legitimacy of unsolicited job offers.
Inflated paychecks. If you’re overpaid and then asked to reimburse your employer, you’re being scammed. Rip up the check and terminate all communications with the scammer.
Unprofessionalism. A simple review of the ad or announcement for the job offer can tell you if you’re being scammed. Look for typos, poor grammar, a lack of contact info and a public domain address as opposed to a business domain. Any of these can point to a scam.
Absurdly high pay. If a job promises high pay for minimal effort, that’s a major red flag. Scammers often entice victims with inflated earnings that don’t reflect the work involved.
Pressure to act quickly. Scammers will pressure you to make quick decisions, such as paying fees or providing personal information immediately. A legitimate employer won’t rush you.

Protect yourself

Here’s how to protect yourself from work-at-home scams:

Research the company. Before accepting any job offer, thoroughly research the company. Look for reviews and complaints online, and check if the business is registered with the Better Business Bureau (BBB). Be wary if you can’t find any information or if the reviews seem overly positive or repetitive.
Use trusted job platforms. Stick to reputable job boards or company websites when searching for work-at-home jobs. Platforms like LinkedIn, Indeed and FlexJobs vet job listings to reduce the chances of scams.
Keep your personal information close. Never share personal information, like your Social Security number, account details or credit card information, during the application process. Legitimate employers will only request this information once you’ve secured a job.
Consult a professional. If a job offer seems suspicious but you’re not sure, seek advice from a career coach or legal professional. They can help you identify whether the offer is legitimate.
Check for licensing or accreditation. If the company claims to be part of a recognized network or industry, verify that accreditation by checking with industry-specific regulatory bodies or authorities.

Stay safe, and remember — if it sounds too good to be true, it probably is!