Contractors recruitment scams: What you should know

There are few online activities and processes that aren’t targeted by scammers, and recruitment in the contracting sector is no different.

Both contractors and recruitment agencies can fall victim to these scams, and they’ve only become more prevalent since the advent of job boards and, more recently, the use of social media for finding work.

If you’re a contractor or recruiter, it’s important you’re aware of what to look out for.

What is contractor recruitment fraud?

Contractor recruitment fraud is committed against an individual recruiter or recruitment agency that works to connect contractors with clients.

Here’s how it works.

A contractor gets in touch with a recruiter asking for support in finding specific types of contracts. That same recruiter is then contacted by an end client looking for exactly that profile of contractor. The recruiter connects the two parties and the contractor starts working for the company, with the recruiter paying the contractor for the work completed—a typical working arrangement for recruiters working with contractors.

However, neither the ‘contractor’ nor the ‘client’ are genuine, and they were working together the whole time. There is no work to complete, and the recruiter won’t be able to recover the monies paid from the company.

What to look out for

Unfortunately, it can be tricky to identify fake contractors and end clients. However, if the scenario outlined above occurs and it seems too good to be true, it probably is.

There are some practical steps recruitment agencies can take to ensure they are protected from contractor recruitment fraud:

• Checking Companies House to see if the end client and contractor (if they’re claiming to be a Limited company) are registered.
• Conduct thorough credit checks on both parties and strictly adhere to the limits imposed on them.
• Look out for ‘high value’ timesheets, as contractors will often try to claim for as many hours worked as possible.
• If either party is registered with Companies House, check if they are filing ‘Micro Accounts’, as this is often a red flag.

Contractors—watch out for the WhatsApp recruitment scam

It’s not just recruitment agencies that can fall victim to contractor recruitment fraud, with scams perpetrated against contractors also rising.

Often, these scams will be sent in the form of WhatsApp messages. Contractors will often put their mobile phone numbers on CVs and upload them to job sites, making that information public information. Fraudsters can then contact those contractors on WhatsApp (or via text message or phone) posing as a recruiter with an exciting opportunity. The contractor might then be asked to pay upfront for background checks, training or other pre-employment processes.

What to look out for

Legitimate recruitment agencies or employers will rarely contact a contractor via WhatsApp or text without some prior communication. They also won’t ask for payment upfront.

If you receive any direct and unsolicited communication via WhatsApp, take it with a great deal of skepticism, and watch out for those red flags, and make sure you thoroughly research the recruiter and the end client before committing to providing any further details.

Other signs you might be falling prey to a recruitment scam include:

• Pressure to act quickly, with language such as ‘this offer won’t last for long’.
• The recruiter isn’t able to give a physical address or website URL
• Vague or generic job descriptions, or failure to provide detailed information about the company or job requirements. You’ll also find they’re unable to answer routine questions about the company and job role.

Stay vigilant, take your time and exercise caution

The key to avoiding contractor recruitment scams is to simply remember that you’re a potential victim and know what to look out for. If you’re unsure, always take a step back and assess the situation—and never allow yourself to be pressured into anything before you’ve had the chance to conduct thorough research.