Fake Recruiter Scams via Prepaid Cards
How fraudulent employment agencies in North America demand prepaid card codes for background checks, training, and equipment fees.
Part of: Fake Recruiters
Last reviewed: 1 June 2026
Work-from-home job scams in North America frequently demand prepaid card payments at the hiring stage, framing the demand as a background-check fee, a training-materials purchase, or an upfront equipment deposit that will be refunded on the first pay cycle. These scams target job-seekers on Indeed, ZipRecruiter, and LinkedIn, leveraging the site's legitimate credibility to reach victims.
The prepaid card demand is the definitive red flag: no legitimate employer requires a job applicant to purchase and share prepaid card codes as part of the hiring process.
How this scam works on Prepaid cards
A victim applies for a remote job and receives a quick offer with above-market pay. Before the first day, they are asked to purchase prepaid Visa or Vanilla cards to cover a background-check fee, IT security certification, or training access. The recruiter sends a convincing onboarding package with fake company branding and a refund promise on the first paycheck.
After the codes are shared, the 'employer' either disappears or claims the refund requires another purchase — a direct-deposit setup fee or equipment insurance. Some operations send the victim a fraudulent cheque to deposit, instructing them to purchase cards with the funds before the cheque bounces — a variant of the cheque-overpayment scam.
Common red flags
- Employer requires prepaid card codes before the first day of work
- Job offer arrived with unusually high pay and minimal interview process
- Background check, training, or equipment fee must be paid via prepaid card
- Employer will reimburse on first paycheque — a promise that is never honoured
- Communication via a personal email address or encrypted messaging app rather than a corporate domain
- Cheque sent to cover 'equipment purchase' that must be done in prepaid cards before the cheque clears
How to protect yourself
- No legitimate employer asks applicants to purchase prepaid card codes for any hiring-related purpose
- Never deposit a cheque from an unknown employer and purchase cards with the proceeds
- Verify the employer independently through LinkedIn company pages, official websites, and public company registers
- Report suspicious job listings to the platform (Indeed, LinkedIn) before taking any action
- If you have already purchased cards and not yet shared codes, do not share them — contact the card issuer's fraud line
How to report it
- Report to the FTC at reportfraud.ftc.gov and the BBB Scam Tracker (bbb.org/scamtracker)
- Report the job listing to the platform where it appeared with all communication evidence
- File with your local police department if a significant amount was lost
Frequently asked questions
Can the cheque I deposited be reversed after I purchased cards with the funds?
Yes. Cheques from unknown sources can take days or even weeks to bounce, but when they do the full amount is debited from your account even if you have already spent the funds. This is intentional in the scam design — you are left with a negative bank balance and no way to recover the card codes you shared. Never assume a deposited cheque has cleared just because the funds appear in your account.