Emerging Threat of Task-Based Employment Scams

This client alert details the emergence of task-based employment scams that are targeting both businesses and job seekers, as reported by the Federal Trade Commission (FTC). These scams involve tricking individuals into performing simple tasks under the false promise of payment, which ultimately never materializes. The alert outlines how scammers utilize legitimate company information to deceive victims, leading to significant financial losses, with reported figures exceeding $220 million in the first half of 2024 alone. The document further explains the potential business impacts, including reputation damage, legal exposure, regulatory scrutiny, and hiring disruptions. To mitigate these risks, the alert recommends several proactive measures for companies, such as strengthening internal controls, educating employees about scam recognition, monitoring unauthorized use of trademarks, and documenting incidents for reporting to authorities. These steps aim to enhance cybersecurity and protect businesses from the adverse effects of such scams.