The bank found that cases of advanced fee job scams have risen 237% so far this year, with more than half (53%) of cases starting on social media.
Victims lost £1,420 on average, with 7% of victims losing more than £5,000. More than half (53%) of all cases involved victims aged 18-34.
What is an advanced-fee job scam?
These scams often start on social media and are disguised as remote work or content engagement roles.
Scammers lure victims with fake job offers that can sometimes involve simple online tasks – such as liking TikTok videos or reviewing hotels.
Victims are promised commissions and high earning opportunities from the comfort of their own homes. But first they must pay upfront fees for application processing, training, DBS checks or even visa sponsorship – known as ‘advanced fees’. Once payments are made, victims are often ghosted or blocked.
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In more elaborate scams, fraudsters simulate entire recruitment processes, including fake interviews, onboarding, and contracts. They might impersonate genuine recruitment agencies and set up fake websites to help with their scams.
Victims may make more than one payment during the scam, sometimes paying for ‘VIP’ upgrades for higher earnings or ‘taxes’ and ‘processing fees’ to access commissions made.
Some scams involve crypto wallets or platforms for task completion, and some victims are even manipulated into forwarding money or acting as intermediaries – unknowingly becoming money mules, an activity that constitutes a criminal offence.
Christina Ford, fraud investigator at Lloyds, said: “In my role, I’ve spoken to a number of customers who have been approached unexpectedly with job offers or they’ve responded to advertisements promising quick cash or remote working opportunities.
“These offers usually take place on social media platforms, sometimes not even framed as a job advert, but instead in the form of a fake profile talking about a great job opportunity they’ve had themselves. Conversations often shift to other apps such as Telegram, where individuals are added to group chats posing as workspaces.
“The roles presented appear simple, such as watching or liking TikTok videos or writing fake reviews to boost company ratings. Customers are told they will earn a set amount per task and initially receive payments into their accounts. However, these payments are often sent by other scam victims who believe they are paying to unlock higher-paying tasks.”
How to avoid advanced fee job scams
- Be cautious of unsolicited adverts or job offers promising easy money, especially on social media. If you spot one, report it to Action Fraud.
- Remember, no legitimate company will ask you to make payments when applying for a job, nor would it ask you to use your own bank account to transfer its money. Do not do it under any circumstances.
- Verify recruiters and companies independently, do your own research and don’t rely on links and documents they provide.
- Avoid opportunities where you are added to unknown apps or group chats that claim to be part of the process.
