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
- Contact the host company directly to verify the internship exists and the agency is authorized.
- For J-1 visa programs, verify the sponsor at j1visa.state.gov — only listed sponsors are real.
- Check the agency's BBB rating and complaint history.
- Use your university's career office to vet placement programs.
- 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.