5 Common Job Scams: Training Loans and Bait-and-Switch Tactics Fresh Graduates Must Avoid

5 Common Job Scams: Training Loans and Bait-and-Switch Tactics Fresh Graduates Must Avoid

Just graduated and encountered a high-paying job listing, only to be told at the interview that you need to pay for training first? Asked to take out a loan for courses before starting, with promises of guaranteed placement after completion? These are not opportunities, they are traps. Here is the conclusion: fresh graduates are the primary targets of job scams. Every year, hundreds of thousands of graduates are defrauded, with losses ranging from thousands to over a hundred thousand. The 5 most common scams are: training loan scams, bait-and-switch training scams, fake high-salary recruitment, paid referral scams, and probation period exploitation scams. Today I will thoroughly explain the tactics and identification methods for each of these 5 scams, then teach you 4 anti-fraud principles and post-victimization remedies, so you can avoid pitfalls on your job search journey.

Scam 1: Training Loan Scams

Training loans are currently the most rampant job scam, specifically targeting fresh graduates and career changers in tech. The playbook works like this:

• Step 1: Post high-salary positions on job sites with pay far above market rates under the banner of high-paying recruitment, attracting you to submit your resume.
• Step 2: During the interview, tell you your skills are not quite there yet and you need to attend their training first. The training costs 20K-50K, but you can pay in installments with zero down payment.
• Step 3: Have you sign a loan agreement. It is nominally called training installment, but it is actually a loan from a third-party financial institution with interest rates as high as 20-30%.
• Step 4: The training content is extremely poor quality, all basic introductory knowledge you could learn for free online, completely not worth the price.
• Step 5: The so-called guaranteed employment does not exist. After training ends, they either recommend a few extremely low-quality positions as a formality or simply disappear.

Identification signs: Any interview that asks you to pay for training is 99% a scam. Legitimate companies provide onboarding training at no cost and would never ask you to take out a loan. If they say the training fee can be deducted from your salary, that is still a disguised training loan. Having to take on debt before you even start working is itself the biggest red flag.

Scam 2: Bait-and-Switch Training Scams

Bait-and-switch training (recruitment turned training) is a variant of the training loan scam with even more deceptive tactics. The core trick: recruiting in name while enrolling students in practice, and hiring based on training results. Specific signs:

• The job posting looks legitimate with clear job descriptions and salary details, but the interview takes a sudden turn as they start selling training courses.
• The interviewer is not HR but a course consultant or career planner who spends the entire time selling training programs rather than evaluating your abilities.
• They claim you will join the company directly after training, but looking carefully at the contract, the training agreement and employment contract are separate. Whether you get hired after training depends entirely on company needs.
• The training fee may be lower than training loans (10K-20K), but the quality is equally poor, and completion does not guarantee employment.

Identification signs: During the interview, they care more about whether you will pay for training than your professional abilities. Legitimate companies interview to evaluate whether you are qualified for the position, not to sell courses. If the interviewer spends significant time introducing training programs and urging you to enroll and pay, it is a bait-and-switch scam.

Scam 3: Fake High-Salary Recruitment

Fake high-salary recruitment exploits job seekers desire for high pay by setting various traps. Specific signs:

• The position salary is far above market rates. For example, the market rate for the same position is 8K-12K, but they list 15K-25K. At the interview, they reveal the base salary is only 3K and the rest is performance-based, which is nearly impossible to earn.
• The job posting is vague about specific work content, only emphasizing high pay, easy work, and monthly income over 10K. The actual work is completely different from the description.
• After joining, you discover it is a sales position involving cold calling, door-to-door promotion, and handing out flyers, completely different from the operations or management role described at the interview.
• Some even involve illegal activities, such as recruiting under the title of financial assistant when the actual work involves drumming up participants for illegal fundraising schemes.

Identification signs: Salary far above market rates, vague job content descriptions, and avoidance of discussing specific work duties during the interview. Remember this common sense: if it sounds too good to be true, it probably is. If a position salary clearly exceeds market levels, it is either a scam or the work content is suspicious. Always ask clearly at the interview: What exactly will I be doing? What are the daily work tasks? What is the salary structure?

Scam 4: Paid Referral Scams

Paid referral scams exploit job seekers desire to join major tech companies, claiming you can buy internal referral opportunities. Specific signs:

• They claim to have internal partnerships with major tech companies like Google, Meta, Amazon, and Apple, and for 20K-50K they can guarantee you an interview opportunity or even an offer.
• They showcase so-called success stories of candidates who got into major companies through their referrals, but these cases are either fabricated or unrelated to the referral service.
• Fee categories are diverse: referral fees, career planning fees, resume optimization fees, interview coaching fees, with charges piling up layer by layer.
• After you pay, the so-called referral is just them submitting your resume on the job site, no different from applying yourself.

Identification signs: Anyone asking you to pay for a referral is running a scam. Real referrals are when company employees recommend you for free, with no charges involved. Major companies referral channels are internal employee systems that cannot be bought with money. If someone claims paying money guarantees interview opportunities at major companies, they are definitely a scammer.

Scam 5: Probation Period Exploitation Scams

Probation period exploitation scams use legal loopholes in the probation period to get free labor. Specific signs:

• Frequently hiring for the same position, recruiting 1-2 people each time, with 3-6 month probation periods at extremely low salaries. Before the probation ends, employees are dismissed for various reasons, and new people are hired to repeat the cycle.
• Not signing formal employment contracts during probation, only signing probation agreements or internship agreements to avoid labor law protections for regular employees.
• Not paying social insurance during probation, claiming it will be made up after becoming permanent, but never intending to let you become permanent.
• Assigning heavy workloads during probation, pushing regular employees work onto probationary employees, then discarding them after use.

Identification signs: Frequent hiring for the same position, extremely low probation salary, no formal contract, and no social insurance. Ask clearly at the interview: How long is the probation period? What is the probation salary? What are the criteria for becoming permanent? If they are vague or you find that the position has had multiple probationary employees, be alert.

4 Anti-Fraud Principles

Now that you understand the 5 common scams, keep these 4 anti-fraud principles in mind:

• Principle 1: Never pay money. Legitimate companies never charge job seekers any fees, including training fees, uniform fee, medical exam fee, deposit, or referral fee. If they ask you to pay first, refuse outright.
• Principle 2: Never take out loans. If an interview requires you to take out a loan, it is 100% a scam. Whether it is called a training loan, course installment, or any other type of loan, do not sign. Having to take on debt before you even start working is itself the biggest red flag.
• Principle 3: Do not easily believe in high salaries. Positions with salaries far above market rates are either scams or have suspicious work content. Always ask about the salary structure, work content, and working hours at the interview. Do not let numbers cloud your judgment.
• Principle 4: Never sign blank contracts. You must sign a formal employment contract before starting work. The contract should clearly state salary, position, probation period, work location, and other key information. Do not sign blank contracts, contracts held only by the company, or agreements where verbal promises are not written into the contract.

Post-Victimization Remedies

If you have already been scammed, do not suffer in silence. The following remedies can help you recover your losses:

• Preserve all evidence: chat records, transfer records, contracts and agreements, screenshots of job postings, interview recordings, etc. These are the foundation for defending your rights.
• File a complaint with labor inspection authorities: For issues involving labor rights (no contract, no social insurance, wage arrears, etc.), call the labor protection hotline or visit the local labor inspection office to file a complaint.
• Apply for labor arbitration: If the company illegally terminates you or withholds wages, you can apply for arbitration at the local labor arbitration committee within 1 year. Arbitration is free.
• Report to police: For suspected fraud involving training loans, paid referrals, etc., call the police directly. For larger amounts, public security organs will open an investigation.
• File a complaint with consumer protection agencies: For false advertising and consumer fraud by training institutions, report to the consumer complaint hotline.

Conclusion: Avoid Pitfalls Before Rushing Forward on Your Job Search

The 5 common job scams: training loan scams (making you take out loans for training under the guise of recruitment), bait-and-switch training scams (selling training courses under the guise of recruitment), fake high-salary recruitment (inflated salaries with mismatched work content), paid referral scams (paying for internal referral opportunities at major companies), and probation period exploitation scams (using probation periods to get free labor). The 4 anti-fraud principles: never pay money, never take out loans, do not easily believe in high salaries, and never sign blank contracts. Post-victimization remedies: preserve evidence, file complaints with labor inspection authorities, apply for labor arbitration, report to police, and file complaints with consumer protection agencies. Remember, on your job search journey, avoid pitfalls before rushing forward. It is better to spend more time vetting opportunities than to fall into traps because of urgency. Your career deserves a better start.

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