Greg's Corner

FTC Warns of “Task Scams”

By Greg Collier

The digital age has brought countless opportunities for remote work, but it has also opened the door to sophisticated scams that exploit jobseekers. According to new Federal Trade Commission (FTC) data, online job scams, especially those known as ‘task scams’, have seen a sharp rise, accompanied by devastating financial losses for victims.

Task scams, a relatively new phenomenon, have surged dramatically in recent years. In 2020, there were no reported cases of these scams, but by 2023, reports had climbed to 5,000. In the first half of 2024 alone, reports skyrocketed to approximately 20,000. In just the first six months of 2024, reported losses to job scams exceeded $220 million, with task scams estimated to account for nearly 40% of those cases.

The mechanics of task scams are alarmingly deceptive. They often begin with an unsolicited message via text or messaging apps, offering vague opportunities to earn money online. Respondents are typically introduced to tasks such as ‘app optimization’ or ‘product boosting’. To build trust, victims may receive small payouts for initial tasks, giving the impression of a legitimate arrangement. However, the scam escalates when victims are asked to invest their own money, typically in cryptocurrency, to complete additional tasks, with promises of higher returns. Once the money is sent, it is never recovered.

The FTC’s data underscores the urgency of staying wary of these scams. Consumers are advised to be wary of unsolicited messages offering vague job opportunities. Legitimate employers rarely initiate contact through text or messaging apps, and no credible job will require payment to receive payment. Additionally, offers to rate or ‘like’ online content for compensation should be treated with skepticism, as they are often illegal and a hallmark of fraudulent schemes.

As job scams evolve in scale and sophistication, raising awareness is critical. By understanding the tactics employed by scammers and recognizing the warning signs, individuals can better protect themselves from falling victim to these predatory schemes. While technology has revolutionized the job market, it also calls for heightened caution to navigate its risks safely.