Help Wanted: Take These Steps to Avoid Job Scams

By Michelle V. Rafter||March 9, 2011

The classified ad that ran in the Washington Post
and other newspapers promised work as a movie or TV extra making $100
to $300 a day. Trouble was, the company advertising the positions failed
to disclose that the jobs listed were outdated, out of the area or
unrelated to work as an extra. Federal investigators said the company
also failed to disclose that the trial membership fee job seekers were
required to pay to learn more about the positions couldn't easily be
cancelled unless applicants forked over additional money.

For those and other reasons, in February 2010 the Federal Trade Commission sued the company, Entertainment Work, Inc. (PDF)
In a settlement announced on March 2, the company agreed to stop
marketing employment products or services and also to stop making
misleading claims when advertising or selling anything.

The action was part of Operation Empty Promises, a year-long investigation by the FTC and other state and federal agencies into nine separate job scams that bilked more than $49.5 million dollars
from people throughout the country "struggling with unemployment and
diminished incomes as a consequence of the economic downturn," according
to the agency.

Although the nation's unemployment is easing somewhat,
many people remain out of work, and that's just the opening job
scammers are looking for, says Frank Dorman, an FTC spokesman.
"Unfortunately, as long as unemployment remains high, scammers will try
to take advantage of people who are looking for work," Dorman says.

If you're looking for work, the No. 1 thing you can do to protect
yourself is avoid dealing with companies that guarantee they can get you
work, especially if they charge you a fee for the privilege, Dorman
says. "Avoid high-pressure sales tactics, and take your time to read the
contract," he says.

Here are other tips on how to avoid job scams from the FTC and employment experts:

1. Beware of companies that want you too much. You
might be the best worker in the world, but if a company is willing to
hire you without an interview, it's a sign that all's not right, says
Charles Purdy, career expert at Monster.com..

2. Don't share personal financial information. Never give out
your bank account, credit card or Social Security numbers or other
financial information to a company you can't find out about, Purdy says.
"These numbers can be used to steal from you or launder funds stolen
from others."

3. Don't pay for services. Beware of employment services firm that require you to pay upfront, even if they guarantee a refund, according to the FTC's Money Matters blog.

4. Ask questions. Especially if you're considering taking a
work-from-home position, Purdy suggests asking the company to list
exactly what the job entails. Other questions to ask: Will I get a
salary or be paid on commission? Who pays me? When do I get my first
paycheck?

5. Read the fine print. Don't agree to anything before reading
a copy of a job service or headhunter's contract. firm's contract.
Understand what services the firm provides, what you'll be responsible
for doing and the terms and conditions of their refund policy. If oral
promises are made but don't appear in the contract think twice about
working with the firm, the FTC's Money Matters tip sheet.

6. Eliminate the middleman. The FTC advises that you follow up
with any company or organization mentioned in an employment services
firm's advertising to find out if the company is actually hiring.

7. Trust your gut. If your initial research on a potential
employer makes you feel even the slightly bit uneasy, follow up with a
more thorough investigation, including checking with your local consumer
protection agency, state Attorney General's office, Better Business
Bureau or Fraud.org. "If you feel uneasy about any job opportunity or
job offer, trust your instincts and walk away," Purdy says.

8. Take action. If you think you've been the victim of a job
scam, call the FTC's complaint hotline at 1-877-FTC-HELP
(1-877-382-4357) or visit their online Complaint Assistant. You can also follow the agency on Facebook and Twitter.

The bottom line, says Jennifer Sullivan Grasz, spokesman for job board CareerBuilder.com: "If it looks too good to be true, it probably is."