Job scams after a layoff: fake recruiters, fake board seats and pay-to-play "executive search"

A job offer is almost certainly a scam if anyone asks you to pay: for the job, for equipment, for training, or for a recruiter to "market" you. Real recruiters are paid by the hiring company, never by the candidate. Job scams are growing fast; losses reported to the Federal Trade Commission rose from $90 million in 2020 to $501 million in 2024.

A layoff makes people easier targets. You're actively looking, your profile says you're open to work, and a message about a well-paid role arrives at exactly the moment you want one. Senior people also face versions most consumer warnings skip: fake board seats, and fee-charging firms that present themselves as executive search.

I'm Ian Schrup, Director of Operations at FirstSourceTeam. We've coached job seekers through layoffs since 2006, and scam messages come up often enough that we treat them as part of the search. This guide covers how to spot them, what they look like, and what to do if you've already responded. It's part of our guide to the first 90 days after a layoff.

How do I know if a job offer is a scam?

A job offer is likely a scam if it asks you for money, arrives before you've spoken to anyone, or moves you to text, WhatsApp or Telegram. The FTC's rule of thumb is short: "Never pay anyone to get paid."

Check	Legitimate recruiter or employer	Likely scam
Who pays	The hiring company pays the recruiter's fee	You pay a fee, a deposit or a "marketing" retainer
First contact	Names the company or describes a specific role and level	Vague role, high pay, "your profile was recommended"
Channel	Company email domain, LinkedIn, a phone call you can verify	Text, WhatsApp, Telegram or a personal email address
Interview	Video or in person, with people you can look up	Chat-only interview or camera stays off
Offer	After several conversations, in writing, from the company	Within days, often without speaking to anyone
Money	Your employer ships equipment or reimburses through payroll	A check to deposit and send money on, or you buy equipment first
Personal data	SSN and bank details only after you accept, through HR onboarding	SSN, bank login or ID photos before any offer

Exhibit 1. Source: FirstSourceTeam; red flags drawn from FTC job-scam guidance, the FTC data spotlight on task scams and the 2025 BBB Scam Tracker Risk Report

Check any offer against this list. One item is a reason to slow down; two or more is a reason to stop.

• You're asked to pay a fee, deposit or "onboarding" cost.
• You're sent a check to deposit and asked to send part of it somewhere else.
• The offer arrives within days, without a live interview.
• The interview happens only by chat, or the camera stays off.
• The pay is high for little work, or the role is vague.
• They want your Social Security number, bank login or ID photos before any written offer.
• The email comes from a personal address, not the company's domain.
• They push you to accept today.

How do you tell if a recruiter is legitimate?

A legitimate recruiter works for the hiring company, which pays the fee, and can tell you which company the role is with. Retained and contingency search firms are both paid by employers; a recruiter who charges you is not doing search.

Verify independently. Find the recruiter's firm through a search engine, not a link they sent. Call the main number listed on the firm's own website and ask whether the person works there. On LinkedIn, look for a full work history, real connections in the industry and a profile older than a few weeks. If the role is with a named company, check that the job appears on the company's own careers page.

What are the most common job scams after a layoff?

The most common job scams are fake recruiter texts, task scams that pay small amounts and then demand deposits, fake offers that require buying equipment, and fake applications built to steal personal information. In BBB research for 2025, fake applications made up 32.4% of employment scams, task scams 25.5%, and check-and-equipment schemes 20.4%.

Text messages started 51.4% of the employment scams reported to BBB Scam Tracker in 2025, and email 25.7%. Social media matters too: one in three people who reported losing money to a job or business opportunity scam in 2025 told the FTC it started on social media.

Example: a fake recruiter text, annotated

Message (example)

"Hi, I'm Rachel, a recruiter with a hiring partner. Your background was recommended for a remote Director of Operations role, $185,000 plus bonus, flexible hours. Are you available for a quick chat on WhatsApp today?"

Red flag 1

Unsolicited text from a number you don't know

Red flag 2

No recruiting firm or hiring company named

Red flag 3

High pay and flexibility before any conversation

Red flag 4

Moves you to WhatsApp, off any platform that verifies identity

What to do

Don't reply or click. Look the firm and the person up independently, then report the message at ReportFraud.ftc.gov

Task scams grew fastest. The FTC estimated they went from zero reports in 2020 to about 20,000 in the first half of 2024 alone, when they made up nearly 40% of job scam reports. The "job" is rating products or boosting apps; early small payouts build trust, then you're told to deposit your own money to unlock earnings.

Example task-scam message (fictional): "Congratulations, you've completed your first set of 40 reviews. To withdraw your $820 in commission, please top up your account with $300 to clear the pending premium order."

Is it a scam if they ask me to buy equipment or pay for training?

Yes. Real employers supply equipment and pay for training themselves. The FTC says honest employers "will never ask you to pay to get a job," and that no real employer will send you a check to deposit and then ask you to send money on.

The usual pattern: you're "hired," sent a check to buy a laptop and software from a specific vendor, and asked to pay that vendor quickly. The check bounces days later, after your money has gone. The vendor is the scammer.

Example equipment-scam email (fictional): "Welcome aboard! To set up your home office, deposit the enclosed check for $4,850 and purchase your equipment from our approved supplier today so it ships before your Monday start. Payment by Zelle or gift card only."

Why do scammers target laid-off executives?

Scammers target laid-off executives because they are actively searching, publicly visible on LinkedIn, and have more money to lose. FBI data shows older job seekers lose far more per complaint than younger ones.

In 2025, complainants aged 50 to 59 reported $100.9 million in employment-scam losses to the FBI's Internet Crime Complaint Center, more than any other age group, and people 60 and over reported $78.7 million. Together those two groups filed about 26% of employment-scam complaints but accounted for about half of the $362.9 million reported lost, by our arithmetic.

Age group	Complaints	Reported losses	Average loss per complaint
Under 20	835	$1.5 million	$1,784
20 to 29	4,555	$33.0 million	$7,256
30 to 39	5,025	$42.9 million	$8,530
40 to 49	4,524	$57.6 million	$12,733
50 to 59	3,671	$100.9 million	$27,473
60 and over	2,853	$78.7 million	$27,590
All complaints (including age not given)	24,688	$362.9 million	$14,701

Note: Complaint counts and losses are as reported by IC3. The average-loss column is FirstSourceTeam's arithmetic (losses divided by complaints) and is not an IC3 figure. Age rows do not add up to the total because some complainants did not give an age.

Exhibit 2. Source: Federal Bureau of Investigation, Internet Crime Complaint Center (IC3), 2025 Internet Crime Report: Crime Types by Age Groups; Complainants 60+; Employment

The FTC, by contrast, does not publish job-scam losses by age. Its 2024 Consumer Sentinel Data Book reports fraud by age only for all fraud types combined.

Are fake board seat offers a scam?

Some are. A board seat offer is a red flag when it arrives unsolicited, asks you to pay an "application," "placement" or "director onboarding" fee, or requires you to invest in the company first. Real boards recruit through their own networks and search firms; they don't charge people to join.

Before you go further, ask who referred you and confirm it with that person. Look up the company's officers and filings: a public company files with the SEC, and most states list registered businesses. Ask to speak with the board chair or another sitting director. A real nominating process involves several conversations and due diligence on you; a scam usually skips straight to paperwork and payment.

Are paid "executive career marketing" firms a scam?

Paying for career help you've chosen is not a scam. The warning signs are a firm that calls itself a recruiter or search firm but charges you, promises access to a "hidden job market," or implies a job is likely if you pay a large fee upfront. The FTC's advice: "If a placement firm asks you for a fee — especially one you have to pay in advance — walk away."

A legitimate coach or outplacement provider sells coaching, not jobs, says so in writing, and doesn't guarantee placement. Ask for the contract before you pay, ask exactly what you get each week, and check for complaints with your state attorney general. Our guide to working with a career coach lists the questions to ask any paid provider.

What do fake recruiter messages on LinkedIn look like?

Fake recruiter messages on LinkedIn are usually flattering, vague about the company, generous about pay, and quick to move the conversation off LinkedIn. Check the sender's profile: a short work history, few connections in your industry or a recently created account are reasons for caution.

Example LinkedIn message (fictional): "Hi David, I came across your profile and was impressed by your leadership in operations. I'm hiring for a confidential VP role with a Fortune 500 client, $240K base, fully remote. The hiring manager would like to interview you this week over Telegram. Please send your best contact number."

Watch for "confidential client" with no detail ever offered, a request to switch apps, and an interview by text. The FBI's 2025 report also notes employment schemes using voice spoofing, and possibly deepfakes, in online interviews; IC3 complainants reported almost $13 million in losses to AI-involved employment scams in 2025.

How common are job scams in 2026?

Job scams are more common than they've ever been in federal data. The FTC recorded more than 105,000 job scam reports in 2024, nearly three times the 2020 level, and the FBI's employment-scam complaints rose from 15,443 in 2023 to 24,688 in 2025.

Note: Losses people reported to the FTC; most fraud is never reported. The 2024 figure is the FTC's "job and employment agency scams" subcategory as stated in March 2025. A later FTC post (September 24, 2025) put 2024 job-scam losses at more than $513 million across more than 105,000 reports. The FTC does not publish job-scam losses by age.

Exhibit 3. Source: Federal Trade Commission, Consumer Sentinel Network: data spotlight "Paying to get paid" (December 12, 2024) for 2020 to 2023; press release on 2024 fraud data (March 10, 2025) for 2024

The FTC has published two loss totals for 2024. Its March 2025 release on 2024 fraud data put losses to job and employment agency scams at $501 million; a September 2025 FTC post put 2024 job scam losses at more than $513 million. Both are reported losses only, and most fraud goes unreported. The BBB ranked employment scams the second-riskiest scam type in 2025 for people aged 45 to 64, behind investment and crypto scams, with a median loss of $1,000.

Measure	Figure	Year	Source
Reported losses, job and employment agency scams	$501 million (up from $90 million in 2020)	2024	FTC, March 2025
Reported job scams and losses (later FTC count)	More than 105,000 reports; more than $513 million lost	2024	FTC, September 2025
Reported losses, wider business and job opportunities category	$750.6 million	2024	FTC, March 2025
Share of people who lost money to a job or business opportunity scam that started on social media	1 in 3	2025	FTC, April 2026
Employment-scam complaints to the FBI	24,688 (20,044 in 2024)	2025	FBI IC3
Employment-scam losses reported to the FBI	$362.9 million ($264.2 million in 2024)	2025	FBI IC3
Rank among riskiest scam types, ages 45 to 64	No. 2, behind investment and crypto scams	2025	BBB Scam Tracker
Median loss, employment scams	$1,000 ($1,500 in 2024)	2025	BBB Scam Tracker
Employment scams that started with a text message	51.4% (email: 25.7%)	2025	BBB Scam Tracker

Note: Each agency counts differently and most victims never report, so the figures are not comparable with each other and understate the problem. Full source links are listed at the end of the article.

Exhibit 4. Source: Federal Trade Commission; FBI Internet Crime Complaint Center 2025 Internet Crime Report; BBB Institute for Marketplace Trust, 2025 BBB Scam Tracker Risk Report

What should I do if I already gave out my information?

Act on the money first, then your identity. Contact the bank, card issuer, payment app or crypto exchange you used right away and ask them to reverse the payment; then go to IdentityTheft.gov if you shared your Social Security number.

1. Call your bank or card issuer using the number on your card. Report the payment as fraud and ask for a reversal. Gift card: call the issuer and keep the card and receipt.
2. Change passwords on any account they could reach, starting with email and banking, and turn on two-factor authentication.
3. If you shared your Social Security number, use IdentityTheft.gov for a recovery plan, including credit freezes.
4. If you let them onto your computer, run a security scan and remove anything it flags.
5. Stop contact and save the messages, profiles, phone numbers and payment receipts as evidence.

Be wary of anyone who contacts you offering to recover your money for a fee. The FBI's report describes recovery scams that target people who have already lost money.

Where do I report a job scam?

Report a job scam to the FTC at ReportFraud.ftc.gov and, if it happened online, to the FBI at ic3.gov. Then report the account or posting on the platform where it reached you.

• ReportFraud.ftc.gov: every job scam, whether or not you lost money.
• ic3.gov: scams that reached you online, by text or by email, especially if you lost money.
• IdentityTheft.gov: you gave out your Social Security number or someone is using your identity.
• Your state attorney general (find yours): fee-charging firms and businesses in your state.
• LinkedIn: report a job posting with "Report this job," or a fake profile from the profile's More menu.

Report even if you didn't lose money. The FTC's job-scam counts and the FBI's complaint data come from these reports.

What's the short version?

• Never pay to get a job, equipment, training or a recruiter's attention.
• Real recruiters are paid by employers and can name the company.
• Unsolicited texts and WhatsApp messages about jobs are the most common starting point.
• Never deposit a check from an employer and send money on.
• Don't share your SSN or bank details before a written offer and HR onboarding.
• Board seats and "executive search" that cost you money are red flags.
• If you've responded, call your bank first, then use IdentityTheft.gov.
• Report to ReportFraud.ftc.gov, ic3.gov and the platform.

For what else to handle after a layoff, see the first 90 days after a layoff, and for the search itself, the job search after 50.

Working with FirstSourceTeam

FirstSourceTeam is a family-owned firm in Minneapolis, and we've coached job seekers since 2006. When a client isn't sure about a recruiter message or an offer, we look at it together and help check it before they reply. Most of our work is the search itself: one-to-one coaching, a rebuilt resume and LinkedIn profile, interview preparation and introductions to real recruiters. If you'd like to see how we work first, join the free one-hour webinar that John Schrup and Misty Schnuelle run every Wednesday at 11 AM Central.

Sources

1. Federal Trade Commission, New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024 (press release, March 10, 2025), accessed Oct 27, 2026.
2. Federal Trade Commission, Paying to get paid: gamified job scams drive record losses (Data Spotlight, December 12, 2024), accessed Oct 27, 2026.
3. Federal Trade Commission, FTC takes steps to stop deceptive and unfair labor market practices (Business Blog, September 24, 2025), accessed Oct 27, 2026.
4. Federal Trade Commission, Reported losses to scams on social media eight times higher than in 2020 (Data Spotlight, April 27, 2026), accessed Oct 27, 2026.
5. Federal Trade Commission, Consumer Sentinel Network Data Book 2024 (March 2025), accessed Oct 27, 2026.
6. Federal Trade Commission, Job Scams (consumer advice), accessed Oct 27, 2026.
7. Federal Trade Commission, What To Do if You Were Scammed (consumer advice), accessed Oct 27, 2026.
8. Federal Bureau of Investigation, Internet Crime Complaint Center (IC3), Internet Crime Report 2025, accessed Oct 27, 2026.
9. Federal Bureau of Investigation, Internet Crime Complaint Center (IC3), Internet Crime Report 2024, accessed Oct 27, 2026.
10. BBB Institute for Marketplace Trust, 2025 BBB Scam Tracker Risk Report, accessed Oct 27, 2026.
11. LinkedIn Help, Reporting jobs on LinkedIn, accessed Oct 27, 2026.
12. LinkedIn Help, Report fake profiles, accessed Oct 27, 2026.
13. National Association of Attorneys General, Find My AG, accessed Oct 27, 2026.