Anatomy of the scam

Fake internship scams target college students and recent graduates, particularly international applicants seeking US experience or visa sponsorship. A "placement agency" or "internship coordinator" promises access to top-firm internships in exchange for upfront fees — placement fees, "program fees," visa sponsorship, training, or relocation deposits.

Variants:

  • Outright fraud. No real internship exists; the agency disappears after collecting fees.
  • Underpaid bait-and-switch. A real but menial position bearing little resemblance to the promised role.
  • Visa fraud. Agencies promising J-1 sponsorship that's either invalid or violates visa terms.
  • Pay-to-play. Real internships but with "agency fees" that violate fair-hiring norms or international labor law.

Some legitimate visa-sponsorship programs exist (CIEE, InterExchange), but they charge fees within a defined range and operate under formal Department of State approval.

Red flags

  • "Guaranteed placement" at famous companies.
  • Upfront fees for internship placement.
  • Visa sponsorship offered through an unfamiliar agency.
  • The placement company has no verifiable Department of State sponsor designation.
  • Communication only by WhatsApp or personal Gmail.
  • Pressure to commit before independently verifying the company or the host employer.
  • The "internship" pays nothing but charges a "training fee."
  • The host company has never heard of the placement agency.

How to verify safely

  1. Contact the host company directly to verify the internship exists and the agency is authorized.
  2. For J-1 visa programs, verify the sponsor at j1visa.state.gov — only listed sponsors are real.
  3. Check the agency's BBB rating and complaint history.
  4. Use your university's career office to vet placement programs.
  5. Real internships at name-brand firms are competitive but free. They do not charge applicants to apply or be placed.

If you already paid

  • Dispute charges with your card issuer.
  • Report to the FTC, Department of State (for J-1), and your state AG.
  • Contact the host firm directly to verify the internship.
  • Talk to your university career office about alternatives.
  • For international students, contact your school's DSO (international student office) immediately if visa documents are involved.

What not to do

  • Do not pay for an internship placement at a US company.
  • Do not trust visa sponsorship from an unfamiliar agency.
  • Do not assume a glossy website means legitimacy.
  • Do not sign contracts in a language you don't fully understand without legal review.

Where to report

  • FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
  • FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
  • CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
  • IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
  • Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.