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- Jobs are being cut as Macy’s closes stores, including 92 jobs in Troy and 117 jobs in Sterling Heights.
- Michigan Attorney General warns that one sign of a job scam is an unsolicited request for an immediate interview.
The scam artists and crooks running fraud rings track the headlines better than an old episode of “Law & Order.” And job losses are clearly in the headlines.
We’ve heard news of thousands of jobs being cut across federal government agencies, including many involving probationary employees who worked less than a year or so for an agency.
Starbucks announced plans to let go of 1,100 corporate employees. Macy’s is closing stores.
In Michigan, 92 people will lose jobs when Macy’s closes its Troy store at Oakland Mall sometime between March 18 and March 31, according to a layoff notice filed with the state of Michigan. Another 117 jobs will be lost at the Macy’s store at Lakeside Mall in Sterling Heights, also set to close March 18.
The notice supplied to the state indicated: “Information about benefits will be made available to impacted employees as well as information about the opportunity to transfer to open positions in nearby Macy’s locations.”
Given a new wave of economic upheaval, it should not be surprising if you end up getting a text soon, like I just did, about a great new job opportunity. One where you can work from home and get paid an amazing amount of money and not need to deal with people.
“Hello, I’m Sarah from Temu,” the text began.
“We would like to offer you a great remote online part-time job to help Temu merchants update data, increase visibility and bookings, and provide you with free training.”
The pay? “Earn $100 to $500 a day. The basic salary is $950 per 4 days worked.”
The benefits? Extraordinary. Maternity leave. Paternity leave. Holidays. And five to 15 days of paid annual leave.
No one, let’s repeat, no one is going to pay you $50,000 a year or even more to work part-time to “increase visibility.” We’re looking at yet another text for a job scam.
FTC warns of uptick in ‘task’ oriented jobs
Con artists might hide behind the name of a job recruiter, promising to hire you for a job that does not exist. They might imply that they’ve seen your credentials online, noting that “your background and resume have been recommended by multiple online recruitment agencies.”
Reported losses to job scams increased more than threefold from 2020 to 2023 and, in just the first half of 2024, topped $220 million, according to the Federal Trade Commission.
A big uptick is being seen in what the FTC calls “task scams,” where you might be paid to do simple repetitive tasks online or via app, such as liking videos or rating product images.
Task scams were estimated to account for nearly 40% of the 2024 job scam reports, according to the FTC.
The scam might start out with a text or WhatsApp message about online work, according to the FTC. But you’re initially going to see very few specifics.
Consumers who respond are often told they’ll be completing “tasks” and they’re going to hear buzzwords like “product boosting” or “app optimization.”
If you take the job, you’d start doing tasks in an online app or platform. Some consumers get small amounts of pay at first.
“Then the scam pivots,” the FTC warns, “asking consumers to put their own money in to complete the next set of tasks.”
The company promises the worker that putting in some money now will lead to more money coming back. Consumers lose every dollar.
“Once they send it, the money is lost for good,” the FTC stated.
In some cases, your earnings will be paid via an app, where your pay looks real but isn’t.
Cryptocurrency is the payment of choice. Task scams, according to the FTC, have fueled the reported jump in cryptocurrency losses to job scams, which hit $41 million in just the first half of 2024. That was nearly double the amount reported lost in all of 2023.
If you hesitate to deposit money, as asked, the FTC warns, “scammers will often invite you to a group chat where newcomers hear supposed success stories from (fake) experienced workers.”
The FTC received 93,365 complaints last year through Sept. 30, 2024, relating to business and job opportunities. Consumers reported losing $514 million to these types of scams, according to data from the FTC Consumer Sentinel Network. The median loss was $2,089.
What are some signs of a job scam?
Consumer advocates offer a long list of tips for how to avoid getting caught by one of these scams. Many people who are looking for work want to remain hopeful. Unfortunately, you need to be cautious, too. Here are some red flags to consider:
- You hear about a job through an unexpected text or WhatsApp message. Real employers aren’t texting us about job openings.
- Somehow you need to send money via cryptocurrency or another method to be able to get access to the money you’ve supposedly already earned. The FBI issued an alert last spring that warns consumers of a job scam that involves directing consumers to a fake account that shows they’re making money but somehow, the worker is not able to get any of the cash.
- Someone is offering to pay you to rate or “like” things online. “That’s illegal,” the FTC warns, “and no honest company will do it.”
- Don’t fall for an unsolicited request for an immediate interview, according to Michigan Attorney General Dana Nessel’s red flags of an employment scam.
- Take a close look at who is sending any email, according to Nessel. It’s a sign of a scam if the email comes from a personal email account rather than a business account.
- Be suspicious if the person doing the interview will only do so online via a chat.
- If a salary seems too good to be true, you’re probably not going to see a real paycheck.
- Never pay any money upfront to cover expenses such as start-up equipment. If someone sends you a check in advance to cover the cost of new equipment, the check is likely a fraud, too.
- Call a company directly to see if they are hiring. Some scammers will use the name of a real employee at a company, so that is not necessarily always a sign that a job opening is legitimate.
- The FTC suggests that you look up the name of the company or the person who’s hiring you, plus the words “scam,” “review,” or “complaint” for indications of possible problems.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
