Pay to Work and Training Fee Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Pay-to-work scams trick job seekers into paying for training, certification, or equipment for a fake job, with reported losses to employment scams topping $501 million in 2024.
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How It Works
1
Scammers post fake job openings on legitimate job boards, social media, or contact you directly via text or email. The jobs often promise high pay for little experience, flexible hours, or work-from-home opportunities to attract a wide range of applicants.
2
After a brief, often unprofessional interview process via a messaging app or a quick phone call, the scammer offers you the job. They create a sense of urgency to prevent you from researching the company.
3
The scammer informs you that you must pay for mandatory training, certification, software, or work equipment before you can start. They may instruct you to pay them directly via wire transfer, gift cards, or cryptocurrency, or they might send you a fake check to deposit and ask you to wire a portion of it to a third-party "vendor."
4
Once you have paid the fee or sent money from the fake check, the scammer disappears. The job never materializes, any check they sent bounces, and you are left with the financial loss and the bank holding you responsible for the funds.
Red Flags
- You are required to pay a fee for the job, training, equipment, or certifications before starting work.
- The job offer is made immediately, often without a proper interview or verification of your qualifications.
- Communication is unprofessional, using personal email addresses (like Gmail) instead of a corporate domain, or relies exclusively on messaging apps like WhatsApp or Telegram.
- The job promises unusually high pay for minimal work or experience.
- You are sent a check for more than the required amount and asked to wire the difference back or to another party.
- The recruiter pressures you to act quickly and accept the offer immediately.
- The company has little to no online presence, or the website was created very recently.
What to Do If Targeted
- Stop all communication with the fraudulent employer immediately.
- Do not deposit any checks they send you. If you already have, contact your bank immediately to report the fraud.
- Never send money via wire transfer, gift cards, or cryptocurrency for a job opportunity.
- If you shared personal information like your Social Security Number, visit identitytheft.gov to get a recovery plan.
- Report the fraudulent job posting to the platform where you found it, such as LinkedIn or Indeed.
- File a report with the FBI's Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).
How to Report It
- FTC — File a fraud report with the Federal Trade Commission to help with investigations and consumer protection.
- FBI IC3 — Report the scam to the FBI's Internet Crime Complaint Center, which is crucial for tracking and combating cybercrime.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- Reported losses from employment scams surged from $90 million to $501 million between 2020 and 2024. — FTC 2025
- In 2023, the FBI's Internet Crime Complaint Center (IC3) received 880,418 complaints with potential losses exceeding $12.5 billion. — FBI IC3 2023 Report
- In just the first half of 2024, reported losses to job scams topped $220 million, driven by a rise in gamified "task" scams. — FTC 2024 Data Spotlight
- An estimated 14 million people are exposed to employment scams annually, resulting in $2 billion in direct losses. — BBB 2020
- The median loss per victim in a job scam was $2,250, second only to investment scams. — Consumers' Checkbook 2024
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Frequently Asked Questions
Legitimate employers will not ask you to pay for training, certifications, or equipment to get a job. These costs are considered part of the employer's investment in a new employee. Any request for upfront payment is a major red flag for an employment scam.
This is a classic fake check scam. The check you receive will be counterfeit and will eventually bounce. Scammers tell you to deposit it and then quickly wire money to a supposed "vendor" before the bank discovers the fraud, leaving you responsible for the full amount.
Research the company online by searching its name with terms like "scam" or "complaint." Verify the job opening on the company's official website, not through a link provided by the recruiter. Legitimate recruiters will have professional profiles on sites like LinkedIn and use corporate email addresses.
While many legitimate remote jobs exist, scammers frequently use the appeal of working from home to lure victims. They exploit the desire for flexibility to post fake opportunities. The FBI warns of work-from-home scams that require victims to make cryptocurrency payments to unlock work or earn more money.
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