Job Scams Thrive as AI and Desperation Fuel a Dangerous New Era of Fraud
The job market is increasingly dangerous for job seekers, while offering fertile ground for scammers. With unemployment and underemployment on the rise, and AI flooding applications, desperation is driving more people to fall for sophisticated frauds that exploit trust in platforms like LinkedIn. Amisha Datta, a 26-year-old recent college graduate with a 4.0 GPA, lost $4,300 to a job scam that began with a seemingly legitimate listing on LinkedIn. She applied for a transcriber role with a purported Oklahoma school district, Five Star InterLocal Cooperative. The job ad appeared professional, the company website looked real, and positive reviews on Glassdoor and Indeed added credibility. A recruiter contacted her via email—similar to the district’s official domain but with hyphens instead of periods—and asked her to complete a form with standard interview questions. The email had minor typos, but she dismissed them. She was soon told she’d gotten the job and asked to sign a contract—flawless in wording—reviewed by her mother with no red flags. She was then instructed to verify her identity through ID.me, a common step in hiring. Next, she was told she needed a laptop with specific software to start. A $4,300 check arrived, appearing real after she confirmed the bank’s website and saw the funds in her account. She wired the money to a vendor as instructed—using a method scammers often use to avoid traceability. The laptop never arrived. When her bank reversed the deposit, she realized she’d lost her own money. Datta felt isolated, ashamed, and helpless. “I felt very alone and just sort of rudderless,” she said. Later, she learned the co-op had received multiple reports of similar scams and had alerted LinkedIn, which removed the post. Brenda Smith, a 56-year-old with a master’s degree working in higher education, also fell victim. She applied to a job on LinkedIn through a fake Robert Half listing. A recruiter named Niamh contacted her via text, claiming to be from a real company, DataAnnotation, which hires remote workers to label AI training data. The job involved clicking on icons to help boost product rankings on Amazon and eBay—a simple task that seemed promising for extra income. Smith was asked to move the conversation to WhatsApp and set up a cryptocurrency account. She deposited $100 to begin and received small returns, which made her believe it was real. But as she neared withdrawal, she was told she needed to deposit more—first $500, then $2,000—to qualify for a larger payout. The recruiter, Niamh, sent warm, personal messages, even sharing photos of her and her daughter, building trust. When Smith tried to quit and reclaim her money, Niamh responded with empathy and pressure: “Please take a deep breath and try to calm down. This isn’t a scam, and I promise I’m still here to help you through it.” She even offered to cover the next deposit. Smith refused, realizing she’d been scammed. She lost thousands and couldn’t help pay for her daughter’s wedding. These cases reflect a growing trend. Between 2020 and 2024, reports of job scams tripled, and losses jumped from $90 million to $501 million, according to the FTC. Scammers now use AI to craft convincing emails, fake websites, and even fake company registrations. They exploit loneliness, financial stress, and the excitement of landing a job offer. Experts like Lisa Plaggemier of the National Cybersecurity Alliance warn that the more people struggle to find work, the more vulnerable they become. Scammers rely on social engineering—building trust through fake identities and emotional manipulation. LinkedIn says it detects and removes most fake accounts and now requires verification for users with recruitment titles. But fraudsters adapt quickly, creating elaborate fronts with real-looking websites and even registered LLCs. Datta’s ordeal didn’t end with the scam. Months later, the IRS contacted her—someone had filed fraudulent tax returns in her name. She discovered the police officer she reported it to never filed a report. “I didn’t get any information on how to seek justice,” she said. “I was very fortunate my family could help.” Now, Datta is attending law school at Texas A&M University. “This was my catalyst to go to law school,” she said. Her story, like Smith’s, is a warning: in a job market that feels broken, scammers are thriving—preying on hope, desperation, and trust.
