Scammers Target Unemployed

The ads said "Mystery Shoppers Wanted." People who called ended up speaking to telemarketers who...

The ads said "Mystery Shoppers Wanted." People who called ended up speaking to telemarketers who claimed the company had lots of part time and full time jobs available and not enough mystery shoppers to fill them. Sounds promising, right? There's a catch.

(Getty/ABC News)

Executive Counseling Services

Don't think for a second that employment scams are targeted only at low-skilled folks. No way. One of the most lucrative employment-related schemes I've seen was aimed at executives. Once again, it involves paying money to make money. These operations go by many names: Headhunters, executive counseling services, job search services, career agents.

No matter what you call them, if they want money up front, it's a bad deal. When I investigated this field, I found that every single service advertising in the newspaper wanted thousands up front.

In exchange, they were supposed to get people interviews with good companies. But think about it. Because they are paid up front, they have little motivation to help their existing clients. The only way for them to make more money is to sign up the next person who's willing to pay in advance. Clients I interviewed paid $4,000 to $10,000 and never got a single interview!

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It's not that I'm against seeking professional help to advance your career. I have an agent myself for my television work. But I don't pay him a dime until he gets me a job. Then I pay a percentage of the salary he negotiates for me, so he's motivated to get me the best deal possible. That's how it works for actors and athletes who employ agents too.

The other problem I discovered with these executive search-type firms is that their contracts are utterly unfavorable to the clients. Often there is often no time limit on the contract. They "guarantee" that they will help you find a job, but they don't specify by what date! They could spend years claiming to look, and meanwhile you'd starve. Another sneaky clause: the contract may state that if they get you just one interview, their obligation to you is fulfilled.