“Fake” Jobs Are on the Rise: Why & How to Avoid Them

Fake job ads attempt to take advantage of desperate jobseekers, while otherwise legitimate “ghost jobs” contribute to applicants’ distrust

If you’re a job seeker, how many advertised positions are real—or, at least, really hiring? Unfortunately, the answer isn’t always clear these days.

Dead-end positions fall into two distinct categories:

• Some ads are outright scams from fictitious organizations (sometimes posing as legitimate companies) attempting to steal something from applicants.

• Others are “ghost jobs” posted by legit companies, but the organizations have already filled the positions, are overwhelmed, or don’t intend to hire someone soon. 

The former threatens job seekers, while the latter can simply waste their time. Here’s a breakdown of each, including tips for workers to navigate searches safely and effectively.

The prevalence of fake, unfilled, or duplicate job ads

Many people report that a significant proportion of ads aren’t real opportunities after undergoing a lengthy search process.

“It’s a waste of time,” one frustrated “marketing and writing” job seeker told The Wall Street Journal, estimating that about 20% of the ads he encountered were dead ends.

It’s hard to specify how many open positions aren’t hiring, but anecdotes and some stats point to a significant number. For example, the US Labor Department reported “4 million more open jobs [10.8 million] in January than unemployed workers available to fill them.” Though the overall totals of open jobs and unemployed workers decreased by a million each in February, the difference between them stayed curiously steady at 4 million, equaling 1.7 openings for every unemployed person.

This situation can partly be attributed to a stubbornly strong labor market and a shortage of workers in the most demanded arenas. But who knows how many advertised jobs represent real opportunities?

The threat of fraudulent jobs

The Federal Trade Commission (FTC) says that “thousands of people reported business and job opportunity scams to the FTC, making them one of the Top 10 frauds reported […] in 2022.”

These scams resulted in $367 million in losses at a median of $2,000 per victim last year. More worryingly, the numbers have risen rapidly. The overall losses from job cons in 2022 increased 76% from 2021 ($367 million vs. $209 million), while the median loss per individual rose 307% ($2,000 vs. $650). However, those stats only represent the scams that people report to the FTC, so the actual totals are far higher.

The pandemic and increased remote positions have contributed to this trend—foregoing in-person interviews and onsite company vetting enables fraud.

The purpose of scams is stealing money directly or obtaining personal identifiable information (PII) to sell data or hack accounts, and the FTC says fraudsters “may go to great lengths to get what they want:”

“Some may conduct fake online job interviews and set up phony onboarding portals where they ask you for Social Security numbers and bank account information to (supposedly) deposit paychecks. Other scammers may ask you to send money for (supposed) equipment needed for remote work — with the promise to reimburse you with your first paycheck.”

Fortunately, there are ways to spot bogus opportunities:

• The FTC advises contacting companies directly instead of through the ad’s contact email if the offer seems to come from a legitimate organization. Some scammers spoof real businesses.
• It also counsels looking out for red flags: “email from personal accounts not affiliated with a company, poor spelling and grammar, interviews conducted solely via email or online chat, salaries out of line with industry norms, and requests for account numbers or other personal information.”
• The job site Indeed offers “10 Signs a Job Posting May Be a Scam,” many of which fall into the ‘too good to be true’ category (high pay, quick offers). Missing company contact info, soliciting payment or personal information, and vague requirements are also sketchy.

Here’s some advice everyone agrees with: never send money to anyone supposedly offering a job. And vet the organization and position thoroughly before passing along sensitive personal information.

What about “ghost jobs?”

Muddying the hiring waters are ghost jobs. Real companies offer these positions, but they may not be true opportunities—at least right now.

Some organizations contribute to applicant distrust by maintaining ads that won’t result in near-term hires. It happens when:

• Companies are inundated with responses and don’t have the resources to handle  the applications
• Their ability to hire changes, but the ad is still up
• The job gets filled, but the ad stays up
• They always maintain ads to enhance recruiting for overall talent and bench strength

All these motivations are invisible to job seekers, who can become frustrated over poor communication and wasted time. Nevertheless, while many companies may not be efficient at hiring or leave ads up for other reasons, they aren’t trying to scam anyone.

Maintaining ads is often done to build a pipeline of applicants and combat high turnover, especially after the job-hopping and tight labor market in the wake of the pandemic. In addition, posting different versions for the same position widens the candidate pool.

“They want to have inbound leads floating through their door,” Michelle Volberg, the CEO of an executive search firm, told CBS News.

Again, job seekers have strategies to assess whether a position is a real near-term opportunity:

• Look at when the job was first posted. Positions that have been up for six months are less likely to be hired than those published for days or weeks.
• “Always check on the employer’s website to search for the job title and see if it is still available,” recommends Career Counselor Robin Ryan in Forbes.
• Old-fashioned networking is also key. Reach out virtually or in-person to anyone a candidate might know who works at the company, soliciting the job’s actual availability.
• Try to identify the specific hiring manager and attempt to contact them, counsels Volberg. But whether it’s through the hiring manager, an in-house recruiter, or someone else, follow up with the company directly.

Vetting job ads and organizations is becoming more important

Job seekers should scrutinize openings before committing to the application process.

In the case of bogus scam positions, the best strategies rely on looking for red flags. Fortunately, there will usually be something off — such as soliciting data or money — so frauds are easier to identify.

Ghost jobs aren’t a threat and might even represent a long-term opportunity, but they can waste time and be more challenging to spot. In these cases, some extra due diligence, including verifying the job’s availability through alternate sources, is required. An attractive position that fits an applicant’s skills can be worth the added research.

Unfortunately for employers, the existence of ghost jobs undermines the credibility of online job recruitment with applicants. A primary consequence is it makes finding qualified and interested employees even harder.

Karp HR Solutions helps businesses master the mix of finance and human resources. Contact us today for a free consultation.