The Federal Trade Commission (FTC) has released new data highlighting a significant increase in consumer reports about online job scams that resemble games. These scams, often called “task scams,” have dramatically risen from zero reports in 2020 to 5,000 in 2023 and then quadrupled to about 20,000 in the first half of 2024.

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Key Points from the Report:

1. Nature of the Scams:

These scams typically start with a text or WhatsApp message offering online work with vague details. Once consumers respond, the platform asks them to complete simple tasks like “app optimization” or “product promotion.” To build trust, the platform initially offers small payments. Initially, small payments are made to build trust.

2. Monetary Losses:

The scams often pivot to asking consumers to invest their own money to continue completing tasks, promising higher returns. However, once the money is sent, it is lost for good. Reported losses from these scams have driven an overall increase in job scam losses, which totaled more than $220 million in the first half of 2024 alone.

3. Use of Cryptocurrency:

Cryptocurrency is the preferred payment method for these scams, contributing to a significant rise in reported cryptocurrency losses. In the first half of 2024, losses reached $41 million, nearly double the total for all 2023.

4. Consumer Advice:

The FTC advises consumers to ignore unsolicited job offers received via text or WhatsApp, never pay to get paid, and be wary of anyone offering payment for online ratings or likes. Legitimate employers will not contact potential employees in this manner.

The FTC continues to work on promoting competition and protecting consumers, providing resources and advice to help avoid such scams. For more information, consumers are encouraged to visit the FTC’s website and report any fraudulent activities.