Veterans, Military Spouses Top Targets of Employment Scams

While employment scams are widespread and aimed at all job seekers, veterans and military spouses are victimized more often and lose more money than their civilian counterparts, a July report from the Better Business Bureau (BBB) reveals.

The BBB states that the COVID-19 pandemic has created a “perfect storm” for scammers as millions of workers have suddenly found themselves unemployed. More than 50 million Americans have filed first-time claims for jobless benefits since mid-March, when businesses nationwide started shutting down.

Employment swindles take various forms. In one, a phony employer steals personal information from job candidates to use for identity theft. In another, new hires are asked to pay for bogus training or equipment. And then there's the sham company that “overpays” a new employee and asks for the difference to be returned; typically, the employee learns later from the bank that the original payment was made with a fake check.

Breaking down the numbers

Military spouses were most frequently victimized by employment scams, with 19.2 percent of those who encountered a scheme reporting a financial loss. Veterans reported losing money in 16.6 percent of cases; the rate for nonmilitary workers was 15.5 percent. Typical veterans victimized by an employment scam lost $1,905 (that's the median loss); followed by military spouses, at $1,825; servicemembers, at $1,680; and civilians, at $1,000.

Beyond the money lost immediately to con artists, some victims worked but never received their promised pay. Some also disclosed personal information that could lead to future identity theft.

The BBB ranked employment ruses as the riskiest category of scam in 2018 and 2019, and preliminary data show a similar trend for 2020. The BBB measures scam risk based on three factors: the prevalence of a scam, the likelihood of losing money and the dollar amount of losses.

Age matters, too. While younger job seekers were more likely to encounter employment scams, older adults typically lost more money to them. The highest median loss ($1,600) occurred among victims ages 45 to 54, followed by those 65 and over ($1,550) and those 55 to 64 ($1,250). Job seekers ages 25 to 34 and 35 to 44 reported a median loss of $1,000; for workers ages 18 to 24, the amount was $540.

How employment scams start

Con artists initiate contact in 80 percent of the cases surveyed, according to the BBB, usually through email or text. But some scammers impersonate legitimate businesses like Amazon or Walmart and post fake vacancies online.