Recruitment companies warned of new scam

Recruitment companies have been advised to be aware following a referral to SAFERjobs (www.safer-jobs.com) by a recruitment company hit by the latest sophisticated fraud.

SAFERjobs has sent out advice to all its members highlighting this latest jobs scam.

The fraud works by job roles being released to recruitment companies by people claiming to work on behalf of a genuine business looking for staff. The business then provides information on potential candidates for the recruitment company to contact or a candidate will apply for a role, but of course they are not genuine. These candidates appear ‘ideal’ for the role and are usually available for immediate start. Hefty financial loss follows whereby the recruiter pays the contractor for work for a significant period without being paid by the employer.

An investigation by the Metropolitan Police has identified that the recruitment company was one of many targeted, and through the SAFERjobs network, advice was given. A cease and desist order has been issued against the fraudster, which has stopped correspondence from the fraudster’s email account.

Detective Chief Inspector Andy Gould, from the Met Police FALCON Unit said: “Recruitment companies are an attractive target for fraudsters. Companies should be aware of the threat of fraud and make sure appropriate due diligence is taken to protect their business. SAFERjobs is a fantastic resource and I would encourage recruitment companies to sign up with them and protect themselves from the threat of fraud.”

In September last year, research by CV Library found that 56% of recruiters believe job scams and job-related fraud are now a big issue facing the sector.

Employment Minister Damian Hinds MP has advised all job seekers to visit SAFERjobs for advice on staying safe in their job search after it was revealed a third of young job seekers felt vulnerable when job searching.

SAFERjobs advises all recruitment companies to:

• Ensure due diligence is done on all new client accounts.
• Contact the new client head office to confirm authenticity.
• Ensure all ‘client-supplied’ candidates are properly vetted, especially those who seem ideal for the role and are available for immediate start.
• Report suspicions to SAFERjobs via the website.
• Join SAFERjobs to receive updates on the latest frauds affecting the recruitment sector (currently supported by 35 of the UK’s top 50 job boards).