Pay to Work Scams

These jobs could cost you a fortune, warns Louise Sylvan, deputy chairwoman of the Australian Competition and Consumer Commission.

With unemployment levels at near-record lows, newspaper and internet classified sections around the country are bursting with promising opportunities for job seekers. But there are traps buried among the genuine dream jobs - scammers masquerading as employers and misleading ads that don't deliver all they promise.
The Australian Competition and Consumer Commission has become aware of a growing number of bogus job ads being placed in employment sections of websites and newspapers.

The scams being reported to the commission range from promises of training with a guaranteed position on completion to work-from-home schemes, promising thousands of dollars a month for basic work such as filling envelopes.
Many of the scams are easy to spot, but some of the present wave of misleading job ads have found insidious new techniques for catching out the unwary.

A particularly predatory scheme that came to light recently advertised sales and marketing opportunities with attractive pay and conditions suitable for students and pensioners.

Those unlucky enough to have dialled the 0055 phone number for further details discovered, after several minutes of spiel, that there was no job and their call had been charged at $4.95 a minute. Many newspapers now refuse to run job ads that carry a 0055 or 1900 premium service phone number.

Publishers are required under the Trade Practices Act, and the equivalent state and territory fair trading legislation, not to publish job advertisements that could mislead the public.

Most take this responsibility seriously, but the reality is it is impossible for a publisher to weed out every advertisement that may, on closer inspection, turn out to be less than it promises. This makes it vital for those reading the ads to be aware of the traps and ensure they don't get caught out. There are several key signs that can indicate a job is not what it seems.

Guaranteed income Some commission-only positions promise a guaranteed income, which doesn't make sense because the salary earned is a percentage of the sales made. Therefore, if no sales are made in a month, logic would suggest the income will be zero as well.

Self-employment or work-from-home business opportunities The lure of becoming your own boss can be an attractive proposition for many job seekers, but advertisements offering successful self-employment systems can actually be a lure for investment. This can include pyramid selling schemes or other similar "self-employment" models that require the purchase of stocks or other investment, which is not always clear from the outset.

Full training provided Advertisements for training services can mischievously find their way into the positions vacant column, thinly disguised as genuine jobs. Many such advertisements promise a guaranteed position on completion, but they often don't spell out how much an applicant will have to pay for the training and what the job at the end will entail. They can simply be well-worded ways to entice a job seeker to pay for a position that doesn't exist and training they don't need.

Wide range of positions vacant Advertisements that don't specify the position on offer can in fact be recruitment consultants trying to increase the number of job seekers on their books - there may be no job at all.

Easy money, simple work Positions that advertise high rates of pay for simple, usually home-based work are generally a con. They often call for a small "fee", typically $25, for an information or starter kit. Once the money is sent, the company - like your money - disappears. Using a postbox instead of a street address makes it easy for the scammers to remain anonymous and is a good sign to readers of an ad that requires a cautious response.

The best advice is to be alert, ask questions and check with the Australian Competition and Consumer Commission or your local office of Fair Trading if you believe a job advertisement is misleading.

An 18-member Australasian Consumer Fraud Taskforce comprising commonwealth, state, territory and New Zealand government agencies are targeting scams during
Scam Awareness Month, which runs until March 13.

For more details or to report a scam, visit http://www.scamwatch.gov.au or call the dedicated hotline on 1300 795 995.

[Source: article by Louise Sylvan, Australasian Consumer Fraud Taskforce, SMH Money Online, 28 February, 2006]