Job scams aren’t new, but they’re getting more sophisticated and more damaging. A recent example comes from GitLab, which had to issue a public warning about fake job listings that used its name, branding, and even fake recruiters to lure in job seekers. These scams didn’t just exploit candidates. They also threatened GitLab’s reputation, candidate trust, and the integrity of its hiring funnel.

If you think this only happens to big tech companies, think again. Fake job postings can impact employers of all sizes, across industries. And while job seekers are the direct victims, employers bear serious collateral damage that’s often overlooked: disengaged candidates, wasted recruiting dollars, and a talent pipeline that slowly erodes in both quantity and quality.

Let’s look at how fake job scams are quietly draining recruiting effectiveness and what you can do to protect your pipeline.

The New Face of Job Scams

Job scams have evolved far beyond the classic “too-good-to-be-true” offers. Today’s fraudsters are organized, tech-savvy, and often use legitimate company names and branding to create fake listings on job boards, social media, or even spoofed career sites.

They might pose as hiring managers, conduct fake interviews, or send counterfeit offer letters to collect personal information or money from unsuspecting candidates. In GitLab’s case, scammers even hosted convincing fake onboarding calls and asked new hires to buy equipment from fraudulent vendors.

According to the Better Business Bureau, job scams are among the top three riskiest types of fraud for U.S. consumers, and the Federal Trade Commission (FTC) reports that job and business opportunity scams cost Americans over $200 million in 2023 alone.

For employers, the consequences go far beyond reputation damage. Fake postings distort the job market, sow distrust among candidates, and make legitimate recruiting efforts significantly harder.

The Ripple Effect on Recruiting

1. Candidates Stop Trusting Job Postings. When candidates can’t tell which listings are real, they stop applying or apply far less frequently. This skepticism disproportionately hurts legitimate employers. Even well-crafted, authentic postings may go ignored simply because candidates have been burned before.

That means fewer qualified applicants entering your pipeline, longer time-to-fill metrics, and increased spend on advertising or agency support to compensate.

2. Talent Engagement Takes a Hit. Candidate engagement is fragile. Every negative experience — whether from a scam or an unclear process — chips away at a candidate’s willingness to engage with employers.

When job seekers encounter fake postings, they associate the experience with risk and frustration. They might ghost recruiters, skip interviews, or abandon applications halfway through. The result? Employers face declining engagement rates, especially for hard-to-fill roles.

3. Your Brand Takes the Fall. A company’s reputation is now part of its recruiting currency. When scammers use your company name to post fake jobs, your brand becomes collateral damage. Even if you’re the victim, candidates might perceive your organization as unsafe or untrustworthy.

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