FIFTH
ARTICLE The
Riley Guide: Scams & Schemes
in Work and Employment Services
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.
- 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."
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:
- Never give personal bank account, PayPal,
or credit card numbers to an employer.
- Never agree to have funds or paychecks
direct deposited to any of your accounts by a new employer.
- Never forward, transfer, or "wire"
money to an employer.
- Do not transfer money and retain a
portion for payment.
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.
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.
Promises, Promises by Joanne Gordon, (Forbes.com
July 22, 2002).
- Please note that you must register with
Forbes.com in order to read this article. It is free and just
takes a minute.
"Unemployed execs are still turning to questionable career counselors
to find jobs. The Internet makes it all that easier to pick
them clean." This short article specifically looks at Careers
2000 (now Careers 20/20) run by Charles F. Dimon III. "In late
June the Irvine, Calif. police department launched a criminal
investigation spurred by numerous complaints (FORBES talked
to 15 disgruntled former clients). In Orange County's small
claims court, 46 people have filed suits seeking restitution,
about half since 2000. They've won in 21 cases and 5 were dismissed;
others were settled or are pending." The bottom line: Beware
any job service that requires payment up front, including listing
services. Your contract should specify that you owe money only
if you land a job.
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.
How Career-Marketing Firms Betray Unwary Candidates
by Barbara Mende (CareerJournal.com 10/15/02)
- "Should you sign on with a career-placement
service that says it can introduce you, for a four-figure fee
or more, to top executives and help you find unadvertised jobs?"
This article discusses several firms around the country who
promised job seekers the world in exchange for some pretty hefty
fees. What was delivered was far less than promised, and clients
have been left out in the cold without refunds. The article
includes side bars on places to Check These Web Sites Before
You Sign Up and info on How to Protect Yourself From Unscrupulous
Firms
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.
Identity Theft related to
job scams
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.
- 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.
- 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.
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.
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