Looking for a new job or considering a business opportunity? Spot signs of possible fraud.

Scammers often target job seekers and potential entrepreneurs with false employment and money-making opportunities. We know this because the FTC has investigated and blocked many of these practices. But scammers are a ruthless group, and they continue to make deceptive propaganda in online advertisements, job websites and social media platforms. Knowing some of the red flags can help you spot these scams.

Job scams come in many forms. Some fraudsters falsely offer insider information such as executive positions, mystery shopping assignments, government careers, or product sales jobs. Others sell job listings or placement services that turn out to be worthless.

Their equally toxic cousins—the con men who promote false business opportunities—are also a creative bunch. For those who want to supplement their income, they may present an “opportunity” as a profitable side hustle for stay-at-home parents or retirees. In other cases, they encourage would-be entrepreneurs to ditch the 9-to-5 grind altogether and make false promises of “being their own boss,” promising that they can work less while making big bucks. All you need are the “secrets” they will teach you. But after people invest thousands of dollars in this “opportunity,” the only ones making big money are the scammers.

Some scammers cast a wide net, while others use publicly available information to target specific groups of people. Others disproportionately target potential entrepreneurs from Black and Latino communities.

Maybe you or someone you know is considering a post-pandemic career change or is looking for business opportunities. Scammers are looking for you. They want your money and your personal information. So don’t just take the word of the person who pitched the opportunity, their agent, or whoever they suggested you talk to. Instead, before you purchase a business opportunity, put it in the hands of a trustworthy person who has no connection to the company, such as a mentor in your community who is affiliated with the SBA’s SCORE program. Also, consider this:

• Search the Internet for the company name and the words “scam,” “reviews,” or “complaints.” Reading articles from other people who have lost money can be eye-opening.
• Legal employers, including federal and state governments, will never ask you to pay to find a job. Anyone who does this is a liar.
• An honest potential employer would never send you a check and then tell you to send some of the money to them. This is a fake check scam.
• Success stories and testimonials may not be true or typical. Glossy success stories can be false or misleading, and positive online reviews can come from fictitious profiles.

Report scams, fraud or questionable business practices to the FTC at ReportFraud.ftc.gov.