Fraudsters may pretend to be from reputable company to set up phony hiring scams
With the huge rise in remote work, fraudsters are a growing threat when it comes to recruitment.
Almost one in five (17 per cent of) Americans have seen or been contacted about a suspicious job opportunity this year, according to a report by Allstate.
“A fraudster may pretend to be from a reputable company and set up a phony interview over instant message,” says Doug Kaplan, senior vice president of operations at Allstate Identity Protection.
“A job seeker can be offered a position on the spot and asked to pay for work-related supplies upfront. Once a victim sends the money, it’s gone forever.”
Nearly 21,600 fake business and job opportunities were reported in the second quarter of this year, according to the Federal Trade Commission. This cost Americans $86 million in losses.
More than half (55 per cent) of Americans receive six or more scam emails in a week, and 36 per cent of fraud victims reported being deceived through an email in 2021, according to AllState’s survey of 2,200 Americnas.
Cases of disability fraud rose 85 per cent year-over-year in the second quarter. Credit/loan fraud surged 116.2 per cent in the second quarter of this year from the same period in 2021. Government tax fraud, meanwhile, jumped 84.35 per cent year-over-year.
“Now more than ever, people need extra information, guidance, and support to navigate today’s threats to their security and privacy — so they can keep their families safe,” says Dustin Hofstein, chief service officer of Allstate Identity Protection.
With this trend, workers may be putting employers at risk of business fraud. But there are some things employers can do to prevent that from happening, according to CG, a consulting and advisory firm.
“It is important for management to be involved with their employees and take time to get to know them. Often, an attitude change can clue you into a risk.”
Also, employers must ensure that everyone within the organization is aware of the fraud risk policy, including types of fraud and the consequences associated with them. Business leaders must also continuously monitor and update fraud detection strategies to ensure they are effective.
“Detection plans usually occur during the regularly scheduled business day. These plans take external information into consideration to link with internal data. The results of your fraud detection plans should enhance your prevention controls,” according to CG.
