Scammers are taking advantage of an increasingly challenging job market to target job seekers with fake ads and steal their money, Westpac NZ is warning.
Financial crime data from Westpac shows a 50% rise in reported job scam cases in the six months to the end of August, compared to the same period in 2024.
Competition for jobs is fierce, with SEEK data showing record high levels of job applications per ad.
Westpac NZ Fraud and Scams Intelligence Manager, Jessica Channing, says online scammers are capitalising on job seekers who become desperate when they can't find work.
"When jobs are harder to come by, it's totally understandable that some people take risks in the application process that they might not normally take," Ms Channing says.
"It always pays to take a step back and ensure the job you're applying for is legitimate. Be wary of any online ad that involves you paying to secure an interview, or an enticing offer that comes out of the blue on social media, by text or through a messaging app."
"Unfortunately, we expect to see this type of scam - where the victim applies for a job and is asked to pay fees to secure it or make purchases that they believe will be refunded, which gives access to their personal and bank details - to continue as long as competition for jobs remains high."
Ms Channing warns that while there are a range of measures to protect customers from scams, including biometric software and confirmation of payee, scammers often try to trick their victims into bypassing these.
"The rest is history"
One Dunedin-based Westpac customer, who asked not to be named, recently lost almost $7,000 after taking on what was advertised as a customer service classified online accommodation review role on a reputable New Zealand job website.
Within a day of applying, the 61-year-old was phoned by a supposed Australian-based support person, set up on the review platform, and connected to others through the platform's internal messaging system.
"It all seemed legitimate and the people I was talking to were very helpful. I had to pay the equivalent of US$65 that I would get back to verify my identity with the details I'd already given them," she says.
She did get that money back plus $200 for reviews she had already done, however, "recharge" requests began to pop up in the platform and she was required to create and top up a cryptocurrency wallet to retain access to the platform. The rest, she says, is history.
"I got six 'recharge' screens on one day for bigger amounts each time and paid some, then asked them if I could get it back. They didn't have much to say but when I worked out how to get into the wallet it was gone."
The scammed Westpac customer says the loss of some of her savings and not having a job has been tough.
"I've now been out of work since June and have had to rely on my partner. I've got a mortgage to pay and everything, and I've worked from home in my three previous roles, but there are just so many people applying for every job that you don't even get an interview."
Employment anxiety
According to figures released by Stats NZ, in the June quarter New Zealand's seasonally adjusted unemployment rate was 5.2% - the highest since 2020.
Ms Channing says while the size of losses in this type of scam is usually relatively low, it is still targeting potentially vulnerable people trying to provide for themselves and their families.
"From January to the end of August this year we know of 110 customers who were scammed out of an average of $1,685 that they could ill afford.
"But the risk of job scams is not just financial loss, but identity theft when victims hand over personal details and documents because they think it is a legitimate job opportunity, which enables the scammers to commit further fraud against them," she says.
"Getting caught up in financial crime can be incredibly distressing and we work hard to help affected customers, including referring them to IDCARE for specialist support."
Be wary if:
- The job involves using a personal account to send or receive funds. A legitimate employer will always operate from a business account.
- You're asked to make a payment to be eligible to apply, to secure an interview, or for training materials or starter kits.
- The job pays much higher than other similar jobs based on your skills and experience and you're not required to work many hours.
- You're contacted out of the blue about a job opportunity and they use social media or messaging apps to communicate.
Ms Channing encourages job seekers to always check whether the business has an online presence and contact them through their official channels to enquire about current jobs.
"You could also do research on the business as well as the recruiter or person who has approached you, to see if they match.
"A good mantra to keep in mind is that if an opportunity seems too good to be true, unfortunately it probably is."
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