Employment fraud, or occupational fraud, is the scamming of people seeking or performing employment

Employment

Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

, giving them the false hope of earning wage

Wage

A wage is a compensation, usually financial, received by workers in exchange for their labor.Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees...

s of which they are often desperately in need. There are numerous methods that perpetrators of such schemes use to lure victims. These include promises such as easy hire, easy work, high wages for unskilled labor, flexible hours, a small number of hours paired with a lot of free time, or other attractive offers.

Types of Employment Fraud

The frauds which are committed by virtue of the occupation. Occupational frauds is a big issue and according to the estimates of Indiaforensic, India loses approximately $40 Billion to frauds every year.

One type of employment fraud happens when a contractor is hired for a duration, verbally promised additional compensation, and then has the compensation and the evidence denied for the purposes of terminating the contract with the contractor.

Another type of employment fraud is when a criminal creates a form of false advertising

False advertising

False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or...

 which lures unsuspecting victims into a situation where, out of desperation or lack of knowledge, they are tricked into committing a crime or become a victim of a crime such as identity theft

Identity theft

Identity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...

, embezzlement

Embezzlement

Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....

 or similar types of fraud

Fraud

In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

.