Recruiting Scams Are Rising. Here’s How Organizations Can Respond Before Real Damage Is Done.

Recruiting scams are no longer a fringe problem. They are becoming more targeted, more sophisticated, and more emotionally damaging for job seekers, especially students and early-career professionals.

What makes these scams particularly dangerous is not just the financial risk, but the trust they exploit. Scammers now routinely impersonate real companies, mirror legitimate branding, reference actual employees, and create experiences that feel authentic enough to bypass someone’s initial skepticism.

This is a problem. And it is accelerating.

According to the Federal Trade Commission (FTC), job scams are now among the fastest-growing fraud typologies, with losses skyrocketing from $90 million in 2020 to over $501 million in 2024.

Over the past year, we have seen a noticeable increase in fraudulent recruiting activity across the market, particularly schemes that rely on fake offer letters, lookalike domains, and urgent requests that pressure candidates to act quickly.

Common tactics include asking candidates to download unfamiliar communication tools, deposit checks to “purchase equipment,” or send gift cards as part of onboarding. Once the transaction clears, the funds are reversed, and the individual is left responsible.

The emotional toll can be just as severe. Many of the individuals targeted are actively seeking work, often after months of searching. When a promising opportunity turns out to be fraudulent, the disappointment cuts deep.

As companies become more visible online and as recruiting moves faster, the attack surface expands. That means organizations need to think beyond internal security and consider how their brand can be weaponized externally.

So what should organizations do?

First, act quickly and visibly. Reporting incidents to local law enforcement and federal agencies like the FBI’s Internet Crime Complaint Center is a smart first move. It creates documentation, patterns, and leverage. In cases involving fraudulent domains, initiating domain disputes can cut off scams at the source.

Second, communicate clearly and consistently. Job seekers should never have to guess what legitimate outreach looks like. Organizations should be explicit about their interview process, their official domains, and what they will never ask a candidate to do. Ambiguity creates opportunity for bad actors.

Third, empower employees to be part of the defense. Scammers increasingly use real employee names to build credibility. Internal awareness ensures those employees know what to watch for and how to respond if contacted by confused or concerned candidates.

Finally, treat this as a shared responsibility, not a reputational risk to hide. Recruiting scams thrive in silence. Transparency, when handled thoughtfully, builds trust with candidates and strengthens credibility with peers.

The takeaway is simple: This issue is growing, not shrinking. Organizations that acknowledge it, prepare for it, and help educate the market will be better positioned to protect both their brand and the people trying to engage with it.

Awareness is not an admission of weakness. It is a sign of leadership.