Employment Scams: What Retailers Must Know to Protect Their Business

From fraudulent job applicants to fake recruiters and payroll diversion schemes, employment scams are quietly draining retail businesses of money, data, and trust.

What’s Happening in Employment Scams

Fraudsters are increasingly targeting retail hiring processes, exploiting gaps in recruitment procedures and posing as job seekers, recruiters, or staffing partners. Employment agency scams are on the rise, with fake agencies tricking businesses into sharing sensitive information.

In parallel, scammers are also posting fake job listings designed to collect personal information from applicants, often by impersonating legitimate companies—putting brand trust and reputation at risk, with applicants receiving no follow-up once their information is collected.

Rapid hiring needs and digital-first recruitment create an environment where employment check scams can easily slip through unnoticed.

How Employment Scams Work

Employment scams can take many shapes, but they all rely on exploiting trust and rushing decisions in the hiring process. Retailers—especially during busy hiring periods—can be easy targets if proper checks aren’t in place.

• Fake job listings: Fraudsters post attractive positions to collect personal information or application fees.
• Advance-fee scams: Job seekers are asked to pay for background checks, training, or equipment upfront.
• Ghost employees / payroll fraud: Scammers create fake employee profiles to divert wages.
• Fake third-party services: Fraudulent recruiters or staffing agencies trick HR teams into sharing sensitive data.
• Identity theft: Personal information from applicants or employees is stolen and misused.

Who’s Targeted

Employment scams don’t just affect job seekers—they can put anyone involved in retail hiring at risk. Scammers often go after the people and teams who handle sensitive information, payroll, or vendor relationships.

Legitimate retailers also face reputational harm when scammers use their company name, branding, or fake job postings, leading to loss of trust, negative publicity, and confusion among applicants and customers.

Common targets include:

• Retail business owners and HR teams: Those managing employee records, payroll, and hiring decisions are prime targets.
• Third-party vendors: Fraudsters may pose as staffing agencies, background check services, or other partners to access valuable data or financial information.

Red Flags for Retailers

Spotting employment scams early can save your business time, money, and stress.

Watch for these warning signs:

• Fake identities or unverifiable documents: IDs, diplomas, or certifications that can’t be confirmed.
• Pressure to fast-track hiring or payment: Rushed decisions or immediate payment requests.
• Requests to change payroll or banking details: Always verify through official channels.
• Advance salary or reimbursement requests: Legitimate employers don’t ask for money upfront.
• Refusal of video or in-person verification: Scammers often avoid direct interaction.
• Fake or unreachable references: Always confirm references to ensure authenticity.

How Retailers Can Prevent Employment Scams

Staying proactive is the best way to protect your business and avoid employment scams.

Key steps include:

• Verify applicants and recruiters: Double-check credentials and identities.
• Train HR and management: Make staff aware of job interview scams, job offer scams, and other red flags.
• Use secure platforms: Rely on verified recruitment tools and official channels.
• Monitor payroll and hiring activity: Watch for unusual patterns that may indicate employment check scams.
• Document and report: Record suspicious activity and notify authorities promptly.

If You’ve Been Affected

Even the most careful retailers can be targeted by employment scams. Acting fast is essential to limit damage, protect your team, and safeguard your business.

If you suspect a scam, take these steps:

• Stop all communication with the suspected scammer to prevent further risk or data exposure.
• Report the incident to local law enforcement so authorities can investigate and take action.
• Notify affected employees and HR teams to ensure everyone is aware and can monitor for suspicious activity.
• Review internal processes to prevent repeat incidents, including hiring, payroll, and verification procedures.
• Consider identity protection or cybersecurity services, such as the Federal Bureau of Investigation’s (FBI’s) Internet Crime Complaint Center (IC3), to safeguard sensitive information.