Woman Scammed Out Of $25,000 After Job Offer On LinkedIn

With Fraud Awareness Week (17-23 November) approaching, Financial Services Complaints (FSCL), a financial ombudsman service, is reminding New Zealanders to remain vigilant about fraud, particularly when sharing personal or financial information online. This follows a steady number of scam complaints this year, including recent job scams targeting those navigating a challenging job market.

“From job search scams to travel card scams, to using remote access to obtain bank account details, we have seen a wide variety of incidents of scams this year,” explains Financial Ombudsman, Susan Taylor.

“Scams can happen to anyone in sometimes the most unexpected ways, and the fraudsters can be very persuasive, often manipulating emotions to build a sense of trust.

“Most recently we have seen cases where people have been scammed after being contacted about an online job. Given the challenging job market at present, people may be more vulnerable to this type of scam, particularly if they have recently suffered a job loss.

“In these cases, consumers almost always communicated with the scammer via email or social media. They promise you a job, but in reality, what they want is your personal information and money. The excitement of new job prospects shouldn’t overshadow the importance of vigilance and verifying the source of the offer.

“Never hand over personal information or your bank account details without thoroughly checking out the person or organisation asking for those details.”

Ms Taylor says consumers also need to be aware that recovery of fraudulent transactions on credit cards, or from online money transfer services is often difficult with very limited chances of success.

“They shouldn’t rely on being able to get a refund in place of carefully considering the trustworthiness of those they deal with online. If something seems too good to be true, it probably is.”

LinkedIn job offer scam

One recent case FSCL investigated, involved a woman who lost $25,000 after a job offer on LinkedIn.

Rika* was approached on LinkedIn by John, who claimed to own a US-based construction company. He offered her a part-time role with the promise of future payment after securing investors for a project in Tokyo. As their working relationship and trust grew, John persuaded Rika to take out a $25,000 loan to help the company, promising substantial returns and said that he would cover the repayments.

Trusting John, Rika applied for four credit cards with a combined limit of $25,000 and provided her credit card details to John once they were activated. Soon, she faced financial hardship when John failed to pay, leaving her with overwhelming debt.

After repaying $18,500, Rika stopped due to financial difficulties and lodged a fraud complaint with her lender. The lender rejected her claim, stating Rika had willingly shared her account details. Unhappy with the response, Rika sought help from FSCL.

FSCL's review concluded that Rika had been scammed as she had authorised the transactions, and there was no basis for asking the lender to reimburse her. However, FSCL raised concerns over the lender’s approval of four credit cards, suggesting it could be a case of irresponsible lending under the Credit Contracts and Consumer Finance Act 2003. As a result, the lender agreed to write off the remaining $6,500, providing Rika with significant relief.

“This case highlights the crucial need for consumers to safeguard personal and financial information, especially when dealing with online contacts,” says Ms Taylor.

“If you have been a victim of a scam or fraud through a financial service provider and have suffered loss or stress, you can contact us. We are here to help and support consumers through the process,” says Ms Taylor.

You can read the full case note here: https://fscl.org.nz/case-studies/received-an-overseas-job-offer-without-applying-red-flag/

People can make a complaint to FSCL at www.fscl.org.nz, calling 0800 347 257, or emailing complaints@fscl.org.nz.

Note:

*Our case notes are anonymised. We have changed names and other identifying information to prevent consumers and financial service providers from being identified.

About FSCL

FSCL is an independent not-for-profit external financial ombudsman service that provides dispute resolution services to participating financial service providers and their clients. Susan Taylor, our financial Ombudsman is also able to make formal determinations which are binding on financial service providers. The FSCL process is free to consumers.

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