Recruitment Fraud Is On the Rise – What You Need to Know to Stay Safe

Recruitment fraud typically involves scammers impersonating legitimate recruiters, hiring managers, or entire companies. They may use fake job listings, spoofed email addresses, or even clone real websites to trick people into believing they are dealing with a genuine opportunity. Their goal? To steal personal data, extort money, or even impersonate job seekers to commit further fraud.

A Growing Global Issue

This is not a fringe problem. According to a 2023 report from the FBI’s Internet Crime Complaint Center (IC3), job and recruitment scams cost victims in the United States over USD 380 million in losses in one year. In the UK, Action Fraud reported a 65 percent rise in job scam complaints in the past 12 months. While specific figures for New Zealand are harder to come by, CERT NZ has acknowledged a noticeable increase in recruitment-related scams reported by both individuals and organisations.

Why This Matters to Job Seekers

For job seekers, especially those navigating a tight or competitive job market, recruitment scams can be devastating. Beyond the immediate financial losses from fake onboarding fees or equipment charges, there is the risk of identity theft. Scammers often ask for sensitive information such as passports, IRD numbers, and full CVs. With this data, they can open bank accounts, take out loans, or even apply for other jobs under your name.

Warning signs for candidates include:

• Job offers that appear too good to be true or arrive out of the blue
• Unverified communication channels, such as Gmail addresses or non-corporate LinkedIn profiles
• Requests for money up front for training, equipment, or security checks
• Poorly written job ads with vague descriptions or unclear requirements
• Being asked to supply identity documents before any interview process begins

If in doubt, trust your instincts. A quick phone call to the official company number, or checking the careers section of the company’s website, can help verify whether a job posting is legitimate.

Employers Are at Risk Too

While job seekers are often the most visibly affected, employers can suffer serious reputational damage from recruitment fraud. When scammers impersonate your brand or your staff, they create confusion and mistrust among potential candidates. That can undermine your employer brand and discourage top talent from applying in the future.

Red flags for employers might include:

• Reports from job seekers about receiving fake job offers or suspicious communication
• Spotting unauthorised job listings on third-party job boards or forums
• Unexpected candidates contacting you about positions you are not actively hiring for

If left unchecked, fraudulent activity using your brand can also expose you to legal or compliance risks, particularly around data privacy and cybersecurity.

How to Protect Yourself – For Job Seekers

Research the company thoroughly. Use official websites, trusted job boards, and verify that the recruiter’s email address matches the company domain.

Never pay for a job. Legitimate employers will not ask you to send money for training, software, or visas.

Limit what you share. Do not send identity documents or bank details before a contract has been signed with a verified employer.

Ask questions. If something feels off, ask the recruiter to verify their identity or provide a contact at the company you can speak to directly.

Use trusted platforms. Seek roles through well-established recruitment websites and avoid applying through unfamiliar links sent via social media or messaging apps.

Enable identity protection tools. Services such as IDCARE in New Zealand can help if you believe your personal information has been compromised.

And for Employers

Secure your recruitment process. Implement official channels for all job advertising, and avoid using personal emails for any hiring communications.

Provide clear candidate guidance. Publish your recruitment process on your website, so applicants know what to expect and how to verify offers.

Train your internal recruiters. Ensure your HR or talent acquisition teams are aware of the latest scam tactics and can confidently respond to candidate concerns.

Monitor your brand online. Use tools like Google Alerts or social media listening software to detect fake job ads or impersonations early.

Report and educate. Report fraudulent accounts or activity to platforms like LinkedIn, Seek, or Indeed. Share updates with your network to raise awareness.

Work with cybersecurity experts. Consider including your IT or legal team in discussions about recruitment fraud, especially if your company has been targeted before.

The Bigger Picture

Recruitment fraud reflects a broader trend in digital scams, where increasing sophistication meets gaps in awareness. As artificial intelligence and automation tools grow more capable, fraudsters can generate convincing emails, fake websites, and even simulate video interviews using deepfake technology. Sometimes so convincing, even the most discerning employer cannot tell the real from the fake candidates. 

This is a conversation that needs to continue across industries. No one is immune – from large corporations to small businesses, and from seasoned professionals to first-time job seekers. By fostering transparency, education, and open communication, we can collectively raise the bar on security in recruitment.

Have you seen or experienced recruitment fraud in your industry? Share your insights and let’s keep each other informed. As a technology focused business QJumpers is incredibly security conscious with a duty of care when it comes to both candidates and our clients.