New complaint data from The Federal Trade Commission (FTC) has shown a staggering rise in online job scamsespecially schemes known as “job scams,” which now account for nearly 40% of job fraud reports in 2024. The sharp increase in these fraudulent activities has increased the total losses from job scams to more than $220 million in just the first six months of 2024. This year.
According to the latest FTC data, reports of task scams rose from zero in 2020 to 5,000 in 2023, before quadrupling to 20,000 in the first half of 2024 alone. These scams usually start with unsolicited texts or WhatsApp messages offering vague online job opportunities. Consumers who respond are told that they will complete tasks such as “improve the app” or “enhance the product.”
“If you receive a message offering you a job (that you did not apply for), it is likely a scam.” The NYPD’s 62nd Precinct wrote to X, with a message that included the FTC’s announcement.
Victims may receive small payments early on to build confidence in the legitimacy of the job. The scheme then escalates, asking victims to invest their money to complete subsequent tasks, promising larger payouts. However, once the money is sent, it is lost forever.
The supposed “job” is to complete tasks in an app or online platform where you will earn money from a “commission” on each click, the FTC warned in a consumer alert. “But these promises are false: there are no commissions, and no one makes any money except the scammers.”
Cryptocurrency is the primary method of payment in these scams. The FTC reported that assignment scams contributed significantly to a surge in cryptocurrency-related losses, which reached $41 million in the first half of 2024 — nearly double 2023’s total.
In 2023, losses from online job scams totaled $286 million. By mid-2024, reported losses had already exceeded $220 million. Since many victims do not report these crimes, the FTC has warned that these numbers likely represent only a small portion of the harm.
The FTC highlighted specific red flags and provided tips to help consumers avoid falling victim to assignment scams:
• Ignore spam messages: Real employers don’t usually communicate with potential employees via generic texts or WhatsApp messages.
• Never pay to get paid: Any request for money up front in exchange for future earnings is a clear sign of a scam.
• Be wary of “gamified” tasks.Offers to pay for liking or rating online content are illegal and usually fraudulent.
Federal officials have warned that the rise of “job scams” — which lure victims with repetitive tasks such as interacting with social media posts or rating companies — has exacerbated the threat. Victims often receive large payouts from quests, with promises of increased pay after completing multiple levels. These schemes culminate in demanding deposits to “unlock” their profits, which ultimately leads to financial losses.
“No matter what the system says you earned, you didn’t,” the FTC report warned. “This money is not real. If you deposit this money, you will not be able to get it back.”
Officials noted that the FTC’s data is troubling about job scams.
“We urge everyone to exercise caution and question too-good-to-be-true offers,” the FTC concluded. “Protecting yourself starts with staying informed and recognizing red flags.”
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2024-12-17 15:40:00
