How to Avoid Job-Search Scams During the Recession

With so many people on the job hunt in the current recession, there are unfortunately others that want to take advantage of it. For example, the FDIC has issued a warning about a rise in scams involving unauthorized money transfers from hacked online bank accounts to what they call "money mules," which are people hired through work-at-home scams to help cyber criminals overseas, launder money. But it's not just people working at home--scams are rampant everywhere--and are targeting those looking for jobs. Here are some ways to avoid getting tangled up in job-search scams.

1 Don't pay a dime. While some job websites may charge a fee to join, be leery and do your research on them. And when it comes to paying for uninsurance benefits, never do it. You should never have to pay for a job or give money upfront to get one.

2 Pay attention to email addresses. A legitimate company will not use a hotmail.com or gmail.com server. So if you see them and are encouraged to apply, try doing a Google search of the entire email address to see what comes up.In addition to links that claim to be for a company's website, don't call a number that they give you. It could be a phishing scam that directs you to a bogus Web or telemarketing center in an attempt to gather more personal information from you.

3 Do your research. Another way to investigate a company that is mysterious with details is to research the phone number on a website like Hoovers.com. You can also do research online about popular job-related scams, or contact the Better Business Bureau to verify if a company is legit.

4 Guard your personal information. If job scammers get a hold of your personal information, identity theft can likely follow. Job applications can request your name, address and phone number, but when they start asking for your social security number (unless it's on a corporate website's secure server) you could be in trouble. If you're not sure about the job outfit, don't give out your information.This can be a double-edged sword, as many legitimate companies request the information. Try not to think you are upsetting them by calling the Human Resources Department to ask for confirmation of a secure policy; many recruiters understand that job-seekers are just trying to safeguard themselves.

5 Be aware of federal job scams. Yes, the federal government is hiring and many scammers are taking advantage of that by offering fake test-practice materials for non-existent exams. They also try to get credit card numbers by claiming to sell informational packets to help you get a government job. For legitimate information about federal jobs, go to the USA Jobs website or check out Kiplinger.com for Marty Nemko's Land a Government Job Now section (see Resources below).

Source: Net