Umbrella company contractors might find themselves under more scrutiny after it was revealed that some recruiters have been targeted by conmen.
The scam works like this; the scammer gets in touch with a recruiter saying they require a contractor for a specific assignment. They even say they know exactly who they want to do the work. In the majority of cases, the scammer also contacts the recruiter, this time posing as the preferred candidate.
The recruiter sets up the assignment as usual and starts paying the contractor. Recruitment agencies tend to pay their contractors prior to receiving money from the client, so this is normal practice. But, of course in the case of the scam, the ‘client’ disappears and the recruiter is left out of pocket, having already paid the ‘contractor’.
This scam was recently brought to the attention of the REC when a member company reported they were unable to trace client or contractor.
The REC warned recruiters to check that potential clients were legitimate, preferably by visiting them at their premises. If that is not feasible, they should phone the company and verify that the client does exist.
This is not the first time conmen have attempted to scam recruitment agencies in this way. Recruiters should always be cautious when it comes to assessing new leads and ensure they carry out the appropriate identity and references checks on new candidates.
If you feel you are under undue scrutiny, don’t be alarmed. Recruiters need to protect themselves and professional agencies should carry out strict checks as a matter of course.
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