The Riley Guide: Before You Search

Scams & Schemes
in Work and Employment Services

General Resources || Job Search / Employment Services Scams
How to Find a Good Career Management Firm
Identity Theft || Work-at-Home Scams || File a Complaint!

We also have a new warning about a highly unethical website

General Resources

Looks Too Good To Be True. com

...background information and alerts about Internet scams and fraud, including identity theft, job scams, and counterfeit payments. Includes a FAQ, a fraud risk test, and links to places to file a complaint about online fraud. Funding for the site has been provided by the United States Postal Inspection Service and the Federal Bureau of Investigation, and they partner with many industry sites in this effort.

Monitor das Fraudes

This site offers information on and news about international fraud and schemes. The author, Lorenzo Parodi, lives in Sao Paulo and has an extensive background in international banking and finance. In Portuguese.

The Rip-off Report

...also know as badbusinessbureau.com, this is "a worldwide consumer reporting Website & Publication, by consumers, for consumers, to file & document complaints about Companies or Individuals who ripoff consumers." Individuals file complaints about companies and agencies with whom they have complaints to warn others about problems. Hopefully they also follow up if/when their complaints are resolved. You can read the most recent reports, but I suggest using the Search Reports feature to find reports on specific companies or within specific categories. Job seekers will want to pay attention to the following categories -- Adult Career and Continuing Ed, Computer Training and Ed, Employers, Employment Services, and Home-Based Business -- but feel free to review any that interest you. As you read these, realize that many were written by angry people bitter about what has been happening, so the language and grammar may be a bit dicey. And while I realize these are self-reported by consumers, it is quite frightening to see the same names listed over and over again, making a clear case for caution in dealing with any of several "employment services."

World Privacy Forum: Workplace

"The World Privacy Forum's Workplace Privacy Project is a long term project to study and document privacy practices in the areas of job applicant privacy, workplace privacy, background checks, and related areas."

The Better Business Bureau Consumer Tips

News and articles from this nation-wide organization. I suggest you "Search Articles" using the words "employment" or "jobs" to pull up their many articles on work-at-home schemes, post office and federal jobs, and employment services (what's good and what isn't).

Internet Crime Complaint Center (IC3)

...created by Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C) to "combat the growing problem of fraud occurring over the Internet by providing a vehicle for victims around the country to report incidents of fraud online." They have a standard list of current Internet schemes of which several relate to employment or job search situations.

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Job Search / Employment Services Scams

Critical Tips for Job Seekers to Avoid Payment-Forwarding Scams

I have seen the solicitations for this type of scam myself, and I have spoken to persons who were caught in its web. This article gives you only four very important things to look for if you suspect you are being targeted. Courtesy of the World Privacy Forum, working hard to protect all of us.

World Privacy Forum: Reports on Online Job Scams

The World Privacy Forum and the Privacy Rights Clearinghouse were alerted of a nationwide job scam which reeled in several unsuspecting job seekers who then lost thousands of dollars due to fraud. Read the several reports available here on this specific scam plus other alerts they have posted.

Report on Online Job Scams, Pt. 1: A Year in the Life of an Online Job Scam

The World Privacy Forum has released the first known study to document the movements of an online job scam over the course of a year, tracing the path of a single “payment forwarding” job scam as it traveled through dozens of online job sites from July 2003 to July 2004. Job seekers were scammed in 2 ways, first by being asked to provide bank and credit card information as a condition of employment, and second by being asked to wire or transfer funds overseas as part of their job. Many of the victims (the job seekers who wired the monies) were not only defrauded of their own funds, but they were arrested and charged for illegal transfers and wire fraud. World Privacy Forum Executive Director Pam Dixon, an early pioneer in using the Internet a job search tool, emphasizes that these four tips will go far to protect job seekers from this and similar scams:

1. Never give personal bank account, PayPal, or credit card numbers to an employer.
2. Never agree to have funds or paychecks direct deposited to any of your accounts by a new employer.
3. Never forward, transfer, or "wire" money to an employer.
4. Do not transfer money and retain a portion for payment.

Fraud Alert: Bogus "Bonus" Checks (FDIC Consumer News, Summer 2002)

"We have warned readers about unsolicited offers of a job, a reward or some similar "opportunity" that are scams to convince people to send cash or give out valuable personal information. Now we want to tell you about a new wrinkle involving bogus checks that are costing victims big bucks." You are offered a job via phone (they found your resume online), and they are sending you a signing bonus, but the check is for well more than the $2000 you were promised. The instructions say "deposit the check and wire the excess to a third party. You follow the instructions and, weeks later, your bank discovers that the check is fraudulent. The result: The money you transferred from your account is gone and, depending on the circumstances, you may be liable for all of the money deposited, even if it's far beyond what you have in your account." This fraud also extends to cashier checks. You'll want to read this article for more information on how to spot fraudulent offers of this type.

Executive Career Management (www.execcareer.com)

This site has been taken down under threat of multi-million dollar lawsuits from the same executive career firms who are constantly cited by job seekers as fraudulent and/or unethical.

Career Column: Beware 'Executive Marketing' Firms (CIOUpdate.com)

This article by Dave Opton, founder of ExecuNet, gives some advice on contracting with these services, including research you should do before signing. This little bit is important for everyone to remember: "Keep in mind that no matter how much money you spend, the only person who is ever going to get you a job is YOU. Furthermore, you are dealing with an unregulated industry so the old adage of buyer beware is very much in order."

Beware of Employment Scams

Information from the Better Business Bureau. "If you are looking for a job, you may come across ads for firms that promise employment results. Although many such firms are legitimate and helpful, others may misrepresent their services, promote outdated or fictitious job offerings, or charge high upfront fees for services that may not lead to a job."

Special Services: Employment Services

Read this document from the Better Business Bureau right after you read the previous one. This outlines the various kinds of employment services firms out there, how they differ, and how to select the right service for you. They also look at deceptive advertising practices and how to avoid problem firms.

Use Official State Agency’s Web Site for Unemployment Benefits: Use of Fee-based Sites Could Jeopardize or Delay Benefits

In this statement issued April 23, 2008, the Minnesota Department of Employment and Economic Development (DEED) emphasized to its citizens that the state's own Unemployment Insurance website was the only approved service to use for apply for benefits, warning users to avoid independent sites that may provide false or misleading unemployment benefit information or even charge a fee to link to Minnesota’s UI web site, or "The official state unemployment insurance site is the only web site that Minnesotans should use for unemployment benefits," said DEED Commissioner Dan McElroy. "People should guard against web sites that seem to be applications for benefits, when, in fact, they are not." This is actually a good warning for all to heed since almost all states plus the District of Columbia allow you to file your claim online for free. We have created a page with links to every state's unemployment insurance information, including DC, Puerto Rico, and The US Virgin Islands.

JobScams (www.jobscams.com)

Site is not responding as of 12/30/04, and the domain is set to expire January 30, 2005. I have a feeling he may be experiencing pressure from those very sources he is fighting against.

The "Executive Marketing" Racket: How I Dropped Ten Grand Down a Hole by Mr. CFO (Ask the Headhunter)

This story was submitted to Ask the Headhunter by an unemployed CFO who prefers to be anonymous. The "counseling company" he refers to is real and well-known, but the name has been changed one that is totally fictitious. This intelligent, experienced executive job seeker was suckered by these guys, and he doesn't want the same to happen to you. After you've read this one, check out the Special: An Insider's Revelations about "Executive Career Counselors, Inc.": An Addendum to Mr. CFO's Story. This was authored by a former employee of one of these firms.

Bernard Haldane: Busting the Bad Boys (Ask the Headhunter)

Cites specific charges filed again this firm, one of the largest career management firms in the US.

Employment Scam Targets Federal Job Seekers (KTVU.com, Feb 24, 2003)

Well, I'm glad someone finally put this in a headline! I see all these ads offering listings of jobs with the U.S. Federal goverment or the Post Office, all for the low price of ... If you notice, I don't link to sites that charge you to access jobs with the Feds because you can get those listings and apply for those jobs for free! This article clearly states that these ads are downright misleading and frequently offer manuals, listings, or contact lists that are out of date. To quote from the article, "Bottom line, the federal government does not hire third parties to advertise for them," said Gregory Ashe, a lawyer with the Federal Trade Commission.

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How to Find a Good Career Management Firm

Several readers have written to me with thanks for the information provided here, but have wondered how to find the good services.

The first thing I will point out to you is that the terms "career marketing" and "executive marketing" make me nervous. This moniker indicates a firm that is engaged in selling.

Good career management consulting firms do not "sell" you. They help you to identify your strengths, overcome your weaknesses, explore your needs, wants, and values, and determine your path in your life and career, and then they help you to create and implement a plan to achieve your goals.

They do not market you. You market yourself. They just provide the tools and support.

You as an individual can find this kind of assistance in several places. Firms that offer what is called "retail outplacement," meaning they are paid by the job seeker, are one source. Another are firms offering career management, career consulting, or career coaching. Even career counselors can be helpful. However, you may still find firms that are problematic among this group, so here are a few tips to help you avoid problems.

If they GUARANTEE they will find you a job or you will find a job by using their services, thank them and leave.

Legitimate career management services know that (1) they cannot guarantee you will be successful in your search, and (2) it's not their job to find you a new job, it is your job. Their purpose is to educate you in the best ways to find a new position. to offer you the access to information and administrative services you need to assist you in your search, and to provide you with the support system necessary to keep you in the right frame of mind while you search (emotional support plus networking with the other clients.)

If they claim to have direct ACCESS TO THE HIDDEN JOB MARKET, thank them and leave.

Legitimate career management firms usually have good connections with local employers, but they do not have access to the "hidden job market" and will not tell you they do. They may be able to assist you with introductions and connections, but they will not claim to have more than that.

If they only have ONE PACKAGE AND ONE PRICE, thank them and leave.

Legitimate career management firms know that each individual has different needs, and they will not try to push you into buying a standard package of services. Most offer their services individually or in bundles, but they will help you determine what services you need and what services you can afford without pressuring you into spending big bucks.

If they must have your decision NOW, and need a check NOW, run!

What's the rush? You are already stressed and do not need to make a decision right now. You can afford to take a day or two to make a decision. Legitimate firms know this and are willing to wait for your decision.

If they CONTACT YOU after finding your resume online, avoid them like the plague!

This looks to me like ambulance chasing. Legitimate career management firms do not scrounge client leads by scanning online resumes. You contact them, they don't chase you when you're down.

On my page for Counseling, Coaching, and Mentoring I list a few associations who certify career counselors, career and/or life coaches, and career management professionals. Each of these provides a free searchable directory of members that you can use to help find the services you need. I like these associations because each has a code of ethics that their members must agree to uphold, along with ways to file complaints if these codes are violated.

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Identity Theft

Online Job Listing an ID Theft Scam by Bob Sullivan (MSNBC, November 4, 2002)

"It was just the job lead Jim needed: a marketing manager position with Arthur Gallagher, a leading international insurance broker. And only days after Jim responded to the job posting on Monster.com, a human resources director sent along a promising e-mail. We’re interested in you, the note said. The salary is negotiable, the clients big. In fact, the clients are so valuable and sensitive that you’ll have to submit to a background check as part of the interview process. Eager for work, Jim complied — and sent off just about every key to his digital identity, including his age, height, weight, Social Security number, bank account numbers, even his mother’s maiden name.
IT WAS ALL JUST an elaborate identity theft scam designed to prey on the most vulnerable potential victims — the increasing ranks of the unemployed."

How do you as a job seeker protect yourself from this kind of fraud?

Common sense is a good place to start.

1. Never give out Social Security numbers to employers before an interview. Never give them credit card numbers and bank account numbers, even for a credit check. They are not necessary for a credit check. Monster.com posts these warnings in the “frequently asked questions” section of its web site. Yes, it is buried, but it is also something you should be reading before using any site.

   The Identity Theft Center reports that it has "heard about several instances where a person placed a "help wanted ad" either on the Internet or in a newspaper and collected SSNs that way." Their advice: "If you send a resume and they reply asking for a SSN prior to an interview, kindly refuse, explaining that you will provide it at the interview itself. Then check the company out with the Better Business Bureau in that area. Make sure it is a legitimate company prior to releasing information." To this I would add call the company to make sure it is also a legitimate employee and advertisement.

2. Watch for warning flags in the email received. Like many scams, the messages involved had spelling errors and grammatical mistakes. In addition, the supposed HR Director requested a reply to a personal e-mail address. Any legitimate corporate correspondence should be going through corporate email.

What if an employer asks to do a background check before you even interview?

I knew some of you would ask, so I contacted one of my favorite HR professionals, currently working for a major food manufacturing company. I added a few explanations of some of her terms [in brackets].

Me: Is it even legal for an employer to ask you to fill out this kind of form before you've even had an interview? Besides all the other pointers the guy missed (lots of misspelled words, grammatical errors, personal email address), should job seekers be wary when a background check is requested before an interview is even scheduled let alone completed?

Her response: Is it legal? No. Not in the least. To prescreen using background check information is illegal, because it may allow a company to use protected information to deny some candidates the opportunity of employment (i.e. income, criminal history, marital status, etc.). Should candidates be wary of a pre-interview request for this information? Absolutely. Especially the credit card information.

Even after we extend an offer, we don't request that information. We get SSN, DL#, and DOB [social security number, driver's license number, and date of birth] and send it to our verification company along with a signed FCRA [Fair Credit Reporting Act] release. They do all the checking. And there is no reason to do a credit check unless the position is of such a nature as to require a credit check (i.e. a bank position, a financial or accounting position, multi-million dollar project manager, etc.).

I can't think of any possible reason why a company would background check a person before an interview is even scheduled. The closest we come is sending an application and the FCRA release to the candidate after the interview is scheduled with a request to complete the forms and bring them to the interview. If the candidate is offered a position, it saves a little snail-mail time waiting for the FCRA form to go out and come back. If the candidate is not offered a position, I shred the FCRA release.

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Work-at-Home Scams

Work-at-home scams have always been around. They offer you a supposedly easy way to make loads of money in just a little time from the privacy of your own home, but they rarely ever turn out to be what they claim to be. The Internet is no stranger to the proliferation of scams, with employment schemes ranking #6 according to the Consumer Protection Agency. You need to be a smart consumer, particularly when it comes to work-at- home offerings. If anything says you must pay for information or supplies to get started, my advice is to run away fast.

Information on Business Opportunities from the Federal Trade Commission

...no, not opportunities with them, but the latest information on their crackdown on fraudulent work-at-home and other business opportunities. They also have additional information on recognizing real opportunities and avoiding fraud at http://www.ftc.gov/bizop/.

Work-At-Home Schemes

...this document from the Better Business Bureau's Consumer Information Publication Series looks at the growing trend of people working from home, alerting you to the many work-at-home scams which are robbing good people of thousands of dollars. "Work-at-home businesses consistently generate the most inquiries received by the Better Business Bureaus. Of complaints received on the Better Business Bureau's on-line complaint service, 20% relate to work-at-home schemes or business opportunity on-line promotions." Please read this over before you sign on the dotted line or commit any money to any work-at-home opportunity.

Work-at-Home Schemes

...released in March 2001 by the Federal Trade Commission, this publication discusses several of the more popular "work at home" scams, including Medical Billing, Envelope Stuffing, and Assembly or Craft Work. It includes questions to ask of any work-at-home program sponsors and where to file complaints. This guide is available through the Federal Consumer Information Center (Pueblo, Colorado), and many other good free helpful guides can be reviewed online here along with links to many more resources.

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File a Complaint!

U.S. Federal Trade Commission (FTC)

The Federal Trade Commission enforces a variety of federal antitrust and consumer protection. The Commission also works to enhance the smooth operation of the marketplace by eliminating acts or practices that are unfair or deceptive. While the FTC does not resolve individual consumer problems, your complaint helps them investigate fraud, and can lead to law enforcement action. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies worldwide. Read consumer publications and file complaints online.

Internet Crime Complaint Center (IC3)

...created by Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C) to "combat the growing problem of fraud occurring over the Internet by providing a vehicle for victims around the country to report incidents of fraud online." Users provide details on specific cases of Internet fraud, and each complaint is carefully reviewed and referred to a law enforcement or regulatory agency for further investigation. Along with the complaint form, the site also contains basic information about the IC3.

The Better Business Bureau

"OUR MISSION is to promote and foster the highest ethical relationship between businesses and the public through voluntary self-regulation, consumer and business education, and service excellence." The Better Business Bureau (BBB) system in the U.S. extends over 98% of the nation; coast-to-coast, including Hawaii, Alaska, and Puerto Rico. File a complaint online or check out a company.

National Association of Attorneys General

The full list of all 50 state Attorneys General, plus DC, Puerto Rico, and other US territories and interests. This site also links you to their web pages so you can get the information you need and file complaints.

You'll also want to file a complaint with any state or county Consumer Affairs agencies that may exist to serve you. The best to place to locate these is through the resources listed at State and Local Government on the NET

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