Employment fraud

Recruiter of an agency or independent recruiter commits a fraud when recruiter to increase their profit margin through misrepresentation convinces candidate contractor or consultant that their skills are not good enough for the hourly rate they asking. The same time to increase the other end of their profit margin recruiter through misrepresentation convinces employer there is no any candidates available on the market for the hourly rate the employer is offering. This way recruiter through misrepresentation of both candidate and employer make damage to both, but gain for themselves. It would not count as a fraud if a recruiter would not use misrepresentation. Because there is a misrepresentation involved it is considered a fraud. This type of fraud is widely spread in countries like the United Kingdom where law enforcement agencies are negligent and jury trials are not mandatory or do not exist at all and due to corruption it is impossible to enforce the law through private prosecution or civil remedies.

This type of fraud involves persons misrepresenting themselves as employees of a particular company and acting on its behalf to offer a fictitious job opportunity. This type of fraud is generally conducted through the internet.

Any advertising or promotion that misrepresents the nature, characteristics, qualities or geographic origin of goods, services or commercial activities that lures victims into a situation where, out of desperation or lack of knowledge, they are tricked into committing a crime or become a victim of a crime such as identity theft, embezzlement or similar types of frauds.[3]

This type of fraud happens when number of employers conspire against specific candidate to force them to work for specific employer and/or to make financial damage to candidate so they would agree to work for lesser salary than their market value or conspiring employer job ad stated salary via avoiding hiring them under different false reasons and through misrepresentation. For instance conspiring employer after the whole hiring process is accomplished they may say they need more time to decide and never give any decision or after the whole hiring process is completed conspiring employer would state false reason for not hiring victim candidate. It is similar to price fixing. This type of fraud is very difficult to prove.

The victim applies to be a mystery shopper. They are asked to test a money wiring service such as Western Union, and to report back on the experience. The victim receives a check and is told to withdraw the value of the check in cash. This leads them to believe the check has cleared, although the check is fake. It can take weeks to uncover the fraud.[4] They then send the money via the wire transfer service either back to the sender or to some sort of money laundering scheme.

The victim is asked to handle payments on behalf of an overseas company, earning a fee for every payment handled. The companies turn out to be a front for illegal activity, implicating the victim in the crime.

The victim is guaranteed a certain income or employment. To get this they first have to buy something like a business plan, start-up materials or software. They may be asked to pay to be put on a directory to "guarantee" jobs.[5] This is merely a way to get the victim to spend money – no job awaits.

People selling through a multi-level marketing scheme earn a commission on the sales of those they recruit, as well as on their direct sales. Some multi-level marketing schemes, like Tupperware, can be legitimate businesses. However some multi-level marketing schemes are pyramid schemes in disguise. The products may be of poor quality, overpriced and hard to sell, or the victim may be asked to spend heavily on useless training materials. Some multi-level marketing schemes may require money from the victim to join.

A prospective employer overseas says that it will handle the victim's work visa application, but instructs the victim to send money in the guise of processing fees. The scammer takes the money and vanishes.[6]