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Monday, Mar. 01, 2010

Crooks ready to pounce with hard times pushing people to take chances

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Everyone knows a good job is hard to find in this economy, but almost as hard to find right now is a good job listing.

With the unemployment rate in the high teens throughout the Central Valley, more and more bogus postings have popped up in job ads promising work but offering scams. They seek to take advantage of people's desire for work in an increasingly tight job market.

"Because there are not a lot of legitimate job opportunities out there, people are a little more tempted to grasp at anything they feel might lead to a job," said Alliance Worknet director Jeff Rowe. "I think (the scam ads) are increasing. The people out there that are trying to perpetrate these frauds know that people are desperate."

  •   Past modbee.com Scam Alerts
  • A scam ad typically:

    • Asks for your Social Security number
    • Requests your bank account, credit card or other financial information
    • Requires you pay up front for training, materials, job referrals
    • Insists you send in a credit report immediately
    • Has you fill out a direct deposit form with application
    • Promises to send money to pay for products, materials
    • Guarantees work after you are trained

    What to do if you've been scammed:

    • Close all bank accounts that were involved.
    • Order a credit report from all three credit bureaus (Experian, Equifax and TransUnion) every few months and monitor them for unusual activity.
    • Notify the credit bureaus if you have given your Social Security number to a scammer.
    • Report the scam to the job board where the ad was posted.
    • Contact the Better Business Bureau at 800-948-4880 or http://midcal.bbb.org.
    • File a complaint with the Federal Trade Commission at 877-382-4357 or www.ftc.gov.

Job seekers across the valley have run into a variety of scams. The high unemployment rate makes it fertile ground for everything from scammers using computer phishing schemes to check fraud and phony serv-ice fees.

Modesto resident Mark Greenblatt has been looking for work for two months. The former collections agent works part-time but is seeking a full-time job. What he has found instead, he said, is mostly scam ads phishing for personal information such as Social Security and bank account numbers.

"They are making money off of sometimes- desperate people's search for employment, and that's very disheartening for me," said the 45-year-old. "I am working part time now out of choice and trying to find full-time work.

"But I am sure there are a lot of people living on food stamps who can't get a break," he said. "You add that in with the scams, and it's the icing on the cake of frustration."

Greenblatt estimates that 65 percent of the online ads he sees are scams.

Many of the most notorious postings can be found on free sites such as www.Craigslist.org. But scams can be found across the board on established Web sites including www.Careerbuilder.com, www.Monster.com, www.HotJobs.com and newspaper classifieds.

Going after crooked offers

The Federal Trade Commission this month announced a crackdown on con artists who target the unemployed with bogus job placement and work-at-home scams.

The consumer protection agency asked federal courts to shut down seven entities charged with peddling such schemes and to freeze their assets. The Justice Department has pursued criminal action in 44 additional cases and state attorneys general are pursuing 18 more, FTC officials said.

David Vladeck, director of the FTC's bureau of consumer protection, said such schemes aren't new but are taking advantage of the increasing number of people who are unemployed or working fewer hours because of the recession, the worst downturn since the 1930s.

"These are scam artists targeting the most vulnerable people," he said. "They are tricking job seekers into parting with their last dollars."

The scams range from simple to elaborate. Many fall into the computer phishing category in which the supposed employer will ask for an applicant's Social Security number, bank account information, credit report or more.

Modesto resident Linda Detwiler has been out of work since June. Forced to wade back into the job market, the 60-year-old said she was shocked by what she found.

"I could not believe that every job that looked like, 'Hey, I can qualify for this,' turned out to be a scam," she said. "It's disheartening. They look totally legit. Then when I send in my résumé, they come back and ask for a credit report."

Detwiler said she stopped searching for jobs on Craigslist three months ago because of the high numbers of scams. Instead, she found out about a job at CarMax in Modesto when taking a car in to be appraised. She was hired part time and starts next month.