The Identity Theft Resource Center (ITRC) reported that job scams surged by 118% last year from 2022 due to the increasing usage of AI to generate fake recruitment ads.

Unsuspected job seekers would often input their personal information during the "interview" process, allowing hackers to steal money from them afterward.

Employment Scams Rise Compromise Identity of Job Seekers

The ITRC report revealed that about 78% of unsuspected job seekers have compromised their identity due to a scam. Google Voice is also the primary technique used by hackers.

One of the most sensitive casualties of compromised identity is giving hackers access to financial accounts or Social Security numbers. The Federal Trade Commission (FTC) reported a loss of $367 million to job and business scams in 2022.

It is also common for victims to lose at least $2,000 during the employment scam, the FTC said. ITRC logged 52% of financial account takeover incidents in 2023. The center also stated that 13,197 job-related crimes were reported last year and there could still be more cases that were not reported to the authorities.

AI Increases Opportunity for Hackers to Create Job Scams

Employment scams have been around since jobs started, however, the rise of AI has made it possible for hackers to develop new ways to trick unsuspected job seekers.

Experts shared that AI tools allowed hackers to generate legitimate-looking job listings and recruitment messages that could easily attract job hunters.

"AI tools help refine the 'pitch' to make it more believable as well as compensate for cultural and grammar differences in language usage," ITRC concluded.

Moreover, the rise of remote work during the pandemic made people more comfortable to transact online instead of face-to-face.

The FTC has warned job seekers against hiring processes that push for advanced transactions upon interview and fast filing of employment paperwork.