Employment scams increasing in wake of job cuts

U.S. corporations announced 95,000 job cuts in June 2002, according to industry experts.

With that many individuals looking for work, some are bound to become targets for less-than-reputable businesses willing to take advantage of their employment situation, according to a news release by the Council of Better Business Bureaus.

While looking for a job, job seekers may come across ads for firms that promise employment results.

Although many such firms are legitimate and helpful, others may misrepresent their services, promote outdated or fictitious job offerings, or charge high upfront fees for services that may not lead to a job.

Some ads may advertise a toll-free number.

Once connected, callers may be switched to a pay-per-call 900-number without their knowledge, or they may be asked to call a 900-number without a proper fee disclosure. Both practices violate federal law.

Many consumers who respond to these ads think they are contacting a legitimate placement service that is seeking candidates to fill specific jobs. Instead, they reach a business that creates the impression that consumers obtain employment through use of its "services."

Such businesses typically charge advance fees ranging from several hundred to several thousand dollars for their services. Sometimes the fees are imposed without consumer approval, or the consumer is led to believe that most or all of the fees ultimately will be refunded, which turns out to be false.

When looking for help in finding a job, it is important to understand the differences among employment services. Many terms, such as employment agency, personal placement service, executive search firm or executive counseling service are used interchangeably. Find out what services a firm offers, how much the services cost and who pays.

If there is a fee required, find out what will be owed if the employment service does not locate a job or any employment leads.

Before sending any money, responding to job ads or completing job placement contracts, the Better Business Bureau and the Federal Trade Commission offer several suggestions.

Be suspicious of any employment-service firm that promises to get you a job.

Even if an employment-service firm guarantees refunds to dissatisfied customers, check on their reliability with outside sources like the BBB or local consumer protection offices.

Do not give out credit card or bank account information over the phone unless you are familiar with the company and agree to pay for something.

Get a copy of the firm's contract and review it carefully before paying any money. Understand the terms and conditions of the firm's refund policy.

Follow up with the corporate offices of any company listed in an ad by an employment service to find out if that company is really hiring.

Be wary of firms promoting "previously undisclosed" federal government jobs. All federal positions are announced to the public.

Check with the BBB to see if any complaints have been filed about a company with which you intend to do business.

There are a variety of free and low-cost resources available to help in job searches, including local and state government job service offices, the Internet, local libraries, and universities and community colleges.