Fake job scams are on the rise – what can HR do?

'Generative AI has made it too easy for scammers to become believable'

Fake job scams are on the rise – what can HR do?

Scammers have found a new way to defraud job hopefuls, using generative AI to create fake job ads that they then use to steal money and identities.

In a scheme that is costing victims billions of dollars, scammers use generative AI to create job postings that promise high wages, benefits, remote work and other desirable perks. Some go as far as creating entire copycat job platforms.

When victims apply, they are then asked by their “new employers” to pay to secure their positions. Sometimes they have their identity stolen, or are asked to pay up front for equipment they will have to use to do their jobs.

Increased job openings lead to more fake job scams

The scam is on the rise because not only is the job market opening up, but the AI tools themselves are becoming better at imitating real job openings, said Zulfikar Ramzan, Chief Scientist and EVP, Product and Development at digital safety platform Aura.

“Scammers will try to reel in candidates by offering a high salary for a remote job with little to no tasks, all you have to do is provide them with your social security number to verify your employment, which is where your identity will be stolen and you likely won’t hear from them again,” said Ramzan.

“Generative AI has made it too easy for scammers to become believable. Simply by asking ChatGPT, they’re able to craft specific, desirable, and convincing fake job descriptions.”

Job postings can look “really advanced”, and often the scammers play a “long game” over time, increasing the appearance of legitimacy. Better Business Bureau in Canada reported that job scams went up 250% from 2022 to 2023.

Fake job scams hurt employers too

It isn’t only job hopefuls that are hurt by this scam.

The job postings are often copycats of real companies’ postings, which has resulted in media attention as HR departments of often large organizations are inundated with job applications for openings that don’t exist.

Employers can have their reputations negatively affected if their companies are used as a lure in a fake job scam. At the least, it can cause confusion and extra administrative damage control.

To prevent their organization from being in the centre of a fake job scam, employers need to be proactive, Ramzan said.

“Employers should regularly monitor the internet for fake job postings and websites posing to be from their company,” he said.

“With generative AI, scammers are getting too good at crafting job descriptions that are desirable to job seekers. It may be worth looking into hiring a role that regularly monitors websites such as LinkedIn, Indeed, and Glassdoor for any fraudulent activity.”

Recent articles & video

Cultural issues 'largely underestimated' in workplaces: report

Where are the top destinations for global jobseekers?

Soaring CRS scores in Ottawa’s ranking system challenge immigrants

Walmart plans to cut workforce by hundreds

Most Read Articles

New Brunswick employer fined over $365,000, banned from hiring temporary foreign workers for 2 years

‘Rage applying’ is real and easier than ever – are your employees about to jump ship?

Canada Post should not have suspended remote workers over COVID-19 vaccination: arbitrator