Employment fraud, sometimes called occupational fraud, occurs when a person or a company claims to be recruiting someone for a job that does not exist. Perpetrators of employment fraud target people who are looking for work, often making promises they have no intention of keeping, such as easy work, flexible hours, or high pay for unskilled labor. Sometimes, the promised jobs are allegedly available in a foreign country.
There are several types of employment fraud. A criminal may create false advertising in which unsuspecting job seekers are misled into situations where they may commit a crime such as embezzlement or become an identity crime victim. Or the fraudster may contact a job seeker for a position overseas and request an “administration fee” to handle all travel arrangements, and a “deposit” fee to cover lodging. In actuality, there is no job, and the fraudulent recruiter does not make any arrangements, instead asking for the job seeker’s bank information to establish salary payments. These personal details are then used to steal funds from an account or to commit other types of identity crimes.