Job seekers in 2025 faced an increasing risk of falling victim to sophisticated online employment scams, with nearly 25,000 reported cases—a figure that has more than doubled since 2023, according to data from the Better Business Bureau. The median financial loss reported by victims was approximately $1,000.
Experts attribute the rise in scams to the vulnerable position many applicants find themselves in amid a competitive job market, combined with advances in artificial intelligence that scammers use to craft highly convincing fraudulent job postings. Josephine Wolff, a professor of cybersecurity at Tufts University, noted that AI tools have enabled scammers to scale up long-standing fraud tactics, making fake job ads appear increasingly legitimate.
Unlike the easily recognizable spam messages promising quick cash from home, current scams are more complex. Fraudsters often replicate real job listings or use outdated postings found online. They then direct applicants to third-party websites unaffiliated with genuine employers or authorized hiring platforms. These sites are designed to collect personal information such as home addresses, birth dates, usernames, and passwords, which can be exploited to access accounts or create fraudulent profiles elsewhere.
Mona Terry, chief operating and programs officer at the Identity Theft Resource Center, pointed out that scammers frequently target specific groups, including recent graduates and low-income individuals, who may feel greater urgency to secure employment and are thus more prone to overlooking warning signs. “They’re preying on that emotion,” Terry said, emphasizing how scammers exploit applicants’ heightened stress and desperation.
A particularly prevalent tactic involves "task-based" scams. Mel Lanning, executive director of the Better Business Bureau’s Institute for Marketplace Trust, explained that fraudsters may send counterfeit checks purportedly for purchasing job-related equipment. Victims are asked to deposit these checks and then transfer funds to the scammers, only to later discover the checks are fake, leaving them financially liable.
Experts warn job seekers to remain cautious, especially when job offers seem unusually promising or require sensitive personal information early in the process. Verifying job postings through official company websites or direct contact with employer representatives is advised to avoid falling victim to these scams.
“This is a really hard time for job seekers,” Lanning said, underscoring the dual challenges of navigating fraudulent postings and dealing with unresponsive applications. She urged caution and thorough verification with every application to reduce the risk of fraud.
