Top 9 Red Flags to Identify a Fraud Company

At some point in your professional journey, you might have come across a situation where you received an email in response to your job application. But the offer, the drafting style, and the details of the job sound too good to be true. Chances are you are right; this can be a fake job, and the company might be fraudulent, praying on you to gouge out money from your pocket.

Fraud companies and their scam job postings are more common than most can imagine. A study suggests around 56% of job seekers in India have faced scams during the job hunt. If you don't want to be scammed out of your professional opportunity, you must learn to distinguish between a genuine company and a fraudulent one. In this latest Pitch N Hire newsletter edition, we will explore the motives behind job scams and how to identify a fraud company.

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Different forms of job fraud

• Fake jobs posted on social media
• Job fraud postings on popular and verified job sites
• Job placement service scam

How does the scam work?

In the past few years, as the demand for employment rises, so has the prevalence of scams targeting unsuspecting job seekers. The fraudsters mostly attack desperate employment seekers, and there are often time constraints linked to these jobs, which create extra pressure on job seekers, leading them to fall for the trap.?

There are largely three motives behind fraud companies and the people behind them:

Free work

In the face of growing demand for employment, fraudster companies lure job seekers to join their workforce with a sham one-time-payment scheme. During this period, the skills and resources of the employee are exploited, and perpetrators often vanish without payment once they've obtained the desired work.

Get money

Another motive of these fraud companies goes beyond work. Often disguised as job placement service providers, these companies demand a one-time payment to connect you with a good job opportunity. Once they receive your money, they can either direct you toward a fraud company or vanish altogether.?

Last year, 15 cases were reported in Hyderabad, where individuals lost over Rs 1.6 crore in the part-time job fraud scheme.

Get your information

In this form, a fraud company often projects itself as a reputed organization. It collects all your vital information, like bank details, ID numbers, and personal data, to play a financial scam on you and your family.

Now that we have discussed the motive behind the fraud companies let's dig even further and identify the red flags of these companies so that you don't fall prey to them.

Top red flags to identify a fraud company

So, how do you identify a fraudulent company? Read our list to know about it and stay safe:

There is no reliable channel of communication

If your potential employer insists on communicating through chatting apps instead of phone calls or conversing through reliable email addresses, that could very well mean the company is bogus. But sometimes, when fraud companies try to connect with you on the phone, they use suspicious numbers that can't be traced back to them.

The company seems off

So many details can indicate if the company is a fraud or not. One of them is the HR department. If the company's HR department fails to maintain professionalism and lacks basic etiquette, you can be sure this is not a good company. However, apart from this, using emojis in email and an informal way of talking can also be good indicators.?

Lack of credibility

In the digital age, a company's virtual presence is one of the most significant badges of credibility. It can be through websites, social media accounts, or online reviews. Often, fraudsters go a step further by creating a fake website to give it legitimacy. But we suggest you review their LinkedIn page, social media accounts, and reviews to verify they're legitimate companies.

Too good to be true

The rule of thumb is that if it's too good to be true, then it's a fraud. If you have researched, you know the pay range and the skills required to secure a job. But if you spot a job posting that offers double or triple for the job you are looking for, then stay away from it.?

And the reason for it is simple: a genuine company can't pay twice for what is standard within the industry.

No proper physical address

A fundamental aspect of brand building is fostering confidence among patrons, which is only possible when a company lists its physical address on digital platforms. But you should be wary of a company with no proper physical address.

You are asked for personal information up front.

As we discussed before, the company could be a total scam if it goes beyond the formal protocol and asks you for personal and financial information before hiring you. That can be a fraudulent company, and it's there only to mine your data.

They make the first move.

A study by YouGov India suggests around 25% of urban Indians who have been surveyed have agreed to have fallen victim to fake jobs by fraud companies. Fraud companies often unleash their scam recruiters on individuals with a job search history. This starts with a job offer that you have never applied for. If this happens to you, do not engage in any of its activities.?

Entry-level position with high pay

Many fraud companies develop schemes like high-pay models for entry-level jobs (usually data entry jobs). Be aware of these companies.

Money is involved immediately.

You get a job that pays you well and demands fewer skills from you, but the catch is that you need to pay a one-time fee (usually an amount equivalent to the first month's salary). This is a classic case of a fraud company because legitimate companies and employers follow the typical hiring process and don't ask for immediate payment from candidates.

Subtle red flags

Apart from the obvious indications mentioned above, a few subtle red flags can save you.

• The email is full of grammatical errors.
• You receive a direct job offer without going through the assessment process.
• Nonspecific job descriptions and vague job postings
• The interview seems too easy

Quick takeaway

Navigating through the landscape of the job market demands a vigilant eye to spot potential red flags, especially when identifying fraudulent companies and spotting fake job postings. Remember to stay updated with the job market trends and avoid quick money-making opportunities proposed by potential employers.?

If you are still interested in finding newer and better job opportunities without the risk of fraud, consider applying through Pitch N Hire's job board. Our platform features a variety of authentic job postings that fit your skills and knowledge.