Job scams targeting young Australians have more than doubled in the past year, and the fallout is being felt in legitimate hiring pipelines used by SMEs.
Scamwatch data shows employment fraud reports among Australians aged 24 and under surged from 377 in 2024 to 877in 2025 – a 132 per cent increase – for a loss of $2.25m. Across all aged groups, online scams cost jobseekers $25.1m.
Scammers are impersonating recruiters for well-known companies, and luring candidates through social media, text messages and fake job ads. The trend is making many young workers skeptical of job postings on Facebook groups, Gumtree or Instagram – channels which are often used by small businesses to find local talent.
Scammers Are Impersonating Employers at Scale
The Scamwatch data shows the number of text message scams alone exploded from 64 reports in 2024 to 322 last year. ‘Online’ scams, which includes forums, websites, Facebook groups and other social media, rose from 208 to 397. Scams via email increased from 71 to 108. Fraudsters typically pose as recruiters for recognisable brands, reaching out via social media or messaging apps with offers that appear too good to refuse.
The tactics follow a predictable pattern. Candidates are asked to complete fake tasks, pay upfront fees for ‘training’ or ‘equipment’ and provide personal banking details. In some cases, the scams escalate further into money laundering. Commonwealth Bank has warned that scammers are using victims’ bank accounts in what’s called ‘money muling,’ turning young job seekers into unwitting participants in financial crime.
The National Anti-Scam Centre has acted to disrupt fake job networks, identifying fraudulent listings spread across 1,825 Facebook groups. That figure underscores how deeply embedded these operations have become in the very platforms SME employers use to fill roles every day.
Candidate Trust in Legitimate Job Ads Is Eroding
For SME employers without established employer brands, the damage is indirect but real. When candidates encounter a wave of fraudulent job ads on the same platforms where legitimate businesses post roles, suspicion becomes the default response.
A small business posting a casual hospitality role on Facebook or a retail position on Gumtree now competes for attention alongside scam listings designed to look identical. Candidates who have been burned, or who know someone who has, are less likely to respond to unfamiliar employers or follow up on opportunities that lack clear company details.
This is particularly acute for businesses recruiting younger workers. The under-24 cohort most targeted by scammers is the same talent pool many SMEs depend on for entry-level and casual roles. Australians are losing more than $2 billion to scams each year, according to the Australian Competition and Consumer Commission, and employment fraud is one of the fastest-growing categories.
The reputational risk compounds over time. Every scam that borrows the language and appearance of a real job ad makes it harder for small and medium businesses to stand out as trustworthy employers in a crowded, increasingly hostile digital landscape.
Practical Steps Can Make Hiring Trustworthy and Transparent
Employers can take concrete action to differentiate legitimate recruitment from fraud.
Using verified job platforms with employer authentication reduces the risk of candidates mistaking scam ads for genuine postings. Roles should be posted through an identifiable company profile, not a personal account or generic listing, to signal legitimacy immediately.
Businesses should never request payment from candidates at any stage. This is the single most common red flag in employment scams, and candidates are increasingly alert to it.
Clear branding on all communications also matters. Job ads, emails and interview invitations should include a verifiable company contact, a real business address and a direct link to the employer’s website. A transparent onboarding process, where new hires receive proper documentation and a clear outline of their role from day one, further reinforces that the opportunity is genuine.
Employers should also be aware of the money laundering risk flagged by Commonwealth Bank. Young employees who have been targeted by scammers before or during employment may unknowingly have their bank accounts compromised.
What to Do if Scammers Impersonate Your Business
Discovering that fraudsters are using a business name to lure victims is becoming a growing reality for Australian employers.
The first step is reporting the impersonation to Scamwatch, which feeds intelligence to the National Anti-Scam Centre. Businesses should also report fraudulent listings directly to the platform where they appear, whether Facebook, Gumtree, Instagram or another site.
Alerting current candidates and recent applicants is equally important. A brief, direct communication explaining that the business is aware of fraudulent activity and confirming its legitimate hiring channels can prevent candidates from falling victim and protect the employer’s reputation.
Monitoring for ongoing misuse of the business name across job platforms should become routine for any SME actively recruiting, particularly those sourcing candidates through social media. In a landscape where scammers are growing bolder and more sophisticated, the employers who invest in visible, verifiable hiring processes will be the ones candidates choose to trust.
