The high unemployment rate and therefore high volume of online job seekers has led to scams tailored to the conditions of the current recession.

Scammers are apparently preying on struggling and out-of-work Americans in two major ways:

• Identity theft scams: Some scammers pose as employers and post fake job opportunities on employment websites or hack into legitimate companies to get job seekers’ sensitive information.
• Get-rich-quick scams: Others are posting lucrative-seeming job offers, knowing that many people are desperate to recover their lost finances. After a victim makes his or her initial “investment,” the scammer keeps the money.

“Operation Short Change” to Aid Consumers

At the beginning of the month, the FTC announced that it has initiated eight new lawsuits and settled or resolved seven others against companies responsible for conning consumers out of money.

The announcement is particularly poignant because many of the scams in question involved consumers already struggling to pay bills, thanks to rough economic conditions.

As part of its consumer protection efforts, the FTC has posted this video for consumers to view.

It includes confessions from a scammer who eventually went to jail for his misdeeds and personal accounts from Americans who were victimized by costly scams.

Protecting Yourself from Scams

BusinessWeek reported that scammers have used stolen information in a variety of ways.

Some fraudsters sell stolen information to illegal immigrants who need Social Security Numbers for employment; others opt for more traditional identity theft crimes.

In one troubling case, online jobseekers’ sensitive information was apparently compromised in a data breach at a company called Aetna.

So what can you do to minimize your potential for getting scammed or becoming the victim of identity theft?

• Guard your personal data. Treat any identifying numbers (credit card, SSN, bank account, etc.) like gold. Legitimate companies generally don’t need your identification digits unless you’ve been offered a job (which means you’ve spoken to a person!) or need high-security clearance.
• Be skeptical of too-promising offers. If a business or investment opportunity sounds too good to be true, it’s likely a scam. The video above has some tips on how to identify and avoid costly and dangerous “opportunities.”
• Get thee to a job fair. If you’re looking for jobs, a job fair can be a great place to make contact with actual humans. Afterwards, you’ll have a better sense of who’s receiving your application (as opposed to risking sending it to a malicious scammer).

The good news is that the FTC has taken action to protect your consumer rights.

Remember, though, that you play the biggest role in actively protecting yourself.

--If you've become a victim of identity theft and your finances have been trashed by a crook, it may be time to learn about the filing bankruptcy option.

Tags: Identity Theft, scams