A rising number of unemployed workers turning to the Internet to look for jobs has spawned new scams that could subject those who respond to significant financial loss, the Idaho Department of Labor is warning.
A criminal investigation is under way into one scam in New Jersey, and the U.S. Department of Labor has its inspector general looking into another. The common denominator appears to be the use of Craigslist in targeting workers.
The New Jersey Department of Labor and Workforce Development is investigating more than a dozen cases where fraudulent checks using the state’s unemployment insurance trust fund bank account and routing numbers were sent to workers who responded to a job advertisement on Craigslist. The workers were told their bank account information was necessary for a direct deposit. While no deposits were made, the workers were then sent fraudulent checks, which they were told to cash and then turn the money over to the perpetrators for employment services either by wire or in person. The workers would then be liable for the fraudulent check amounts after they failed to clear.
In the second scam, the U.S. Department of Labor reported at least five fraudulent checks bearing the name of the Oklahoma Employment Security Commission and written for anywhere from $3,000 to $20,000 were sent by delivery service to individuals in New York and Pennsylvania, who had advertised their availability to work on Craigslist. The workers cashed the checks and then were called by the perpetrators and told the checks were issued in error and the money had to be returned. If they returned the money, the workers are again liable for the bounced check.
Officials said one victim who contacted her bank was told by bank officials that the bogus checks are typically delivered on Friday so the recipients cannot verify their authenticity. They also said the scams have the chance of working because banks will allow withdrawal of any government checks within 24 hours of deposit.
Any Idaho workers who come in contact with transactions that stray from the state’s traditional unemployment benefit issuance procedures should contact the Idaho Department of Labor at (208) 332-3570 ext 3238.