If it is a contract position, they're rather misrepresenting it. I believe this is from the company itself and not a recruiter, but I could be wrong.
I have also heard that some companies want to see if they attract any applications from current employees, thereby learning who is on the job market.
Ironically, the more I read the job description the more I'm inclined not to apply. (What looked like an internal IT position at first glance looks more like a sales kind of thing dealing with customers.)
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