The rise of recruitment scams in today’s employment market

The scheme: how it operates

At first glance, these operations may seem like typical recruitment agencies or recruiters. They scour job boards and LinkedIn for available positions, generating a list of potential matches for candidates. They claim to streamline the application process, helping applicants navigate the competitive job market more efficiently. However, beneath this seemingly benign facade lies a more sinister motive.

• Data scraping: Using automated tools, these companies gather data about open positions as well as potential candidates from various job boards and LinkedIn. This practice raises questions about the legality and ethics of data usage, as many platforms do not permit scraping without permission.
  
  
• Applicant recruitment: Once they identify potential candidates, these companies reach out, often using vague communication that lacks transparency. They may convince applicants that they are simply acting as intermediaries who can help them secure jobs.
  
  
• Application management: If the applicant shows interest, the company often requests that they apply through them. This usually involves the creation of an email account linked to the applicant’s name, which the company then uses to submit applications and handle all communications. This approach effectively makes the company the middleman, managing all interactions with potential employers, and unless the company and/or candidate realises they are dealing with an opaque/transparent middleman they involuntarily disclose often confidential and/or sensitive information.
  
  
• Fee structure: To further entrench themselves in the process, these operations often require applicants to pay a fee for their “services.” This fee can be framed as an application processing charge, a fee for resume enhancement, or a payment for access to exclusive job opportunities.

The risks involved

While these operations may initially appear to offer legitimate services, there are significant risks for applicants:

• Lack of transparency: Communication is often poor, and many applicants report feeling confused about the process. Without clear information, candidates may unwittingly give away personal details.
  
  
• Potential for extortion: Once the company has gathered sensitive information from the applicant, there is a risk they could use it for coercion or extortion. If the applicant fails to pay the fees, the company may threaten to share personal information or impede their job search.
  
  
• Employment opportunities at stake: Engaging with these companies could jeopardise an applicant's chances with legitimate employers. If a potential employer discovers that an application was submitted via a middleman, it might reflect poorly on the candidate harming their reputation and potentially cutting them off from opportunities they do in fact qualify for.

Protecting yourself

To safeguard against these malicious practices, consider the following tips:

• Research recruitment agencies: Before engaging with any recruitment service, conduct thorough research. Look for reviews, verify their credentials, and check their reputation.
  
  
• Be cautious with personal information: Never share sensitive personal details or make payments without verifying the legitimacy of the agency and validating the service they provide as being legal and ethical.
  
  
• Trust your instincts: If something feels off — be it vague communications or aggressive fee requests — trust your instincts and reconsider your engagement.
  
  
• Use established platforms: Whenever possible, apply directly through company websites or well-known job boards. This minimises the risk of encountering these intermediary schemes.

Our first hand experience

Recently, our talent acquisition (TA) team has had an encounter with a candidate who had unfortunately almost been scammed. In this situation, it was an engineering manager who had been approached by an “external recruiter” with one of our positions, mentioning that he had an “in” at Bitpanda and would be able to ensure the candidate gets the role, for a “small” fee. 

What our TA team saw was the candidate’s actual CV, with missing contact information, and in the profile was a strange email address with an unknown domain. Feeling unsure, our TA specialist reached out cautiously to organise an interview, but also followed up on LinkedIn, asking to confirm the email the candidate had applied to our role with. Unsurprisingly, they did not match. Our TA Team during the interview with this candidate was able to probe and understand the construction which this candidate had almost been almost scammed. 

As the job market continues to evolve, so too do the tactics of those seeking to exploit it. A Bitpanda Talent Acquisition Specialist will always contact you directly and in the case of a 3rd party being used, will liaise with only trusted partners. 

By staying informed and vigilant, you can protect yourself from falling victim to these schemes and focus on securing legitimate opportunities that align with your future; whether that is at Bitpanda or another adventure of your choosing.