College summer job search ripe for fraud

Beauford Parish was anticipating the end of his spring semester, so he started looking online for a summer job. He found an ad on a college employment website that sounded interesting. Parish applied and received numerous emails that listed the steps he needed to take before he could begin work. The “employer” told him he had to purchase materials but they’d send Parish a check to cover the purchase of the materials and software plus $500, which he could keep as his first paycheck. He was then to deposit the check in his personal checking account. Parish was instructed to withdraw the funds and wire a portion to an individual or “vendor” to pay for the materials and software who’d then send them to Parish. Two weeks later, Parish received a double whammy. He never got the materials and software, plus his bank called to say that the check had bounced, and he needed to cover the lost funds. Hello! Parish was a victim of a college employment scam.

Easy money but not for college students

College student employment scams have been common for many years and continue to proliferate because of their profitability. Students learn about these fraudulent “job opportunities” by visiting college employment websites at which fraudsters post phony ads or send via emails to their school accounts.

The FBI’s Internet Crime Complaint Center (IC3) posted a public service announcement, “Employment Scam Targeting College Students Remains Prevalent,” about this scam on January 8.

The IC3 reported these examples of emails that a prospective victim might receive after showing an interest in a fraudulent “job opportunity”:

• “You will need some materials/software and also a time tracker to commence your training and orientation and also you need the software to get started with work. The funds for the software will be provided for you by the company via check. Make sure you use them as instructed for the software and I will refer you to the vendor you are to purchase them from, okay.”
• “I have forwarded your start-up progress report to the HR Dept. and they will be facilitating your start-up funds with which you will be getting your working equipment from vendors and getting started with training.”
• “Enclosed is your first check. Please cash the check, take $300 out as your pay, and send the rest to the vendor for supplies.”

The scammers divert possible suspicion about the “employment opportunity” by telling prospective victims that the (counterfeit) checks they’ll receive will include the money for their first paychecks. This prompts the students to think that the job offers are real. A “something for nothing” ploy at its best!

We aren’t finished yet. Victims might face dire consequences for their innocent actions. For example, if banks play hardball, they might close the victims’ accounts for fraudulent activity and report it to local law enforcement agencies and credit bureaus. Also, the scammers might have collected other personally identifiable information (PII) from the victims and will use it for identity theft. Victims didn’t intend on spending their summers trying to untangle “job opportunity” messes and restoring their credit ratings.

The IC3 reports the following advice to students to protect themselves from this scam:

• Don’t accept jobs in which you must move money around either by checks or wires.
• Look for poor or flat-out incorrect grammar. Many of these fraudsters aren’t native English speakers.
• Warn your friends and report emails to both the FBI and your college’s IT personnel and police department. Also file a complaint at IC3.gov and the Federal Trade Commission at ftc.gov.

Colorado State University reiterates the IC3’s advice on CSU’s website and adds these tips:

• Don’t put up money or accept money before you’ve started working for the company.
• Avoid out-of-state or international recruiters who are in town “while on business.” Not wanting to meet in person is a big red flag.
• Pay attention to the email address — does it seem to be from a legitimate business?
• Another red flag is when the “employer” says they need to use a third party, such as a lawyer or friend, to pay wages.
• Never provide your credit card or bank account numbers, and be cautious of payments by wire service or courier.

On Feb. 26, 2016, the Better Business Bureau reported the following information for spotting an employment scam:

• “Some positions are more likely to be scams. Always be wary of work from home, secret shopper positions or any job with a generic title, such as caregiver or customer service representative.
• “If a job looks suspicious, search for it online. If the result comes up in other cities with the exact same job post, it is likely a scam. Also, check the real company’s job page to make sure the position is posted there.
• “Watch out for on-the-spot job offers. You may be an excellent candidate for the job, but beware of offers made without an interview. A real company will want to talk to a candidate before hiring him or her.”

Your friends and family aren’t the only ones reading your social media posts

College students are particularly vulnerable to identity theft scams. Fraudsters take advantage of students’ liberal use of social media like Facebook and LinkedIn by posting fake pages on these websites that resemble college pages.

Also, because college students post a lot of personal information about their families and friends on social media, fraudsters have a goldmine of PII to steal. They then use it to develop and proliferate other profitable scams or sell it on underground forums for others to use.

For example, the well-known “grandparents scam” and other derivatives evolved from these sites. This fraud has continued unabated for the last five years because it targets the elderly who are relatively more susceptible to fraud.

Here’s how it works. The fraudster, posing as a grandchild who’s in college, calls a grandparent. The fraudster says they’re in another state on spring break and have landed in jail. To post bail and get home, the “grandchild” asks his grandparent to wire a large sum of money to a predetermined location and pleads to “not tell my parents.” The fraudster impersonating the grandchild comes across as panicked.

But we might not be done yet. If the scam works, the fraudster or a companion calls the next day impersonating the grandchild’s “lawyer” and says that complications have arisen. To resolve the problem the “lawyer” instructs the grandparent to wire even more money to him. In 2012 a couple in Seattle lost nearly $89,000 to this scam. (See Scammers are stealing from elderly by posing as grandkids in trouble, by Jennifer Sullivan, Seattle Times, April 18, 2012.)

I’ve had numerous students tell me about cases in which their grandparents were scammed or were smart enough to avoid it.

More help for the community

Please share this important information with your family, friends and clients who have children currently or about to be enrolled in colleges and universities and include it in your outreach programs.

Please contact me if you have any identity theft issues you’d like me to research and possibly include in future columns or if you have any questions related to this column or any other cybersecurity and identity theft questions. I don’t have all the answers, but I’ll do my best. Stay tuned!

Robert E. Holtfreter, Ph.D., CFE, CICA, CBA, is distinguished professor of accounting and research at Central Washington University in Ellensburg, Washington. He’s also on the ACFE’s Advisory Council and the Editorial Advisory Committee. His email address is: doctorh007@gmail.com.