Freelancer Scam: Seven Signs of Fraud.
Freelancer Scam: Seven Signs of Fraud.
The outsourcing industry is budding, and freelancer scammers are on the prowl!
Finding online work is easy and widespread on sites like Upwork, Freelancer, and Fiverr. In many cases, scammers pretend to be employers to trick information and money from freelancers.
Before we look at the ‘Freelancer Scam — Seven Signs of Fraud,’ let me start my own case study; a good lesson for me, and all freelancers must read this post to deal with fraudsters.
Case Study of Freelancer Fraud.
New to the Freelancer platform, I made a profile and was searching for online work. In one of the ads, data entry assignments were posted. It was a simple assignment of converting PDF documents to word files, and the rates were good enough to attract anyone’s attention. As soon as I shared my profile, I got a message to come on WhatsApp to discuss the assignment. The fraud agent also shared an instruction video about the work. It had four different projects, and the employee had to choose the project as per his capability.
The amount offered was $20 per page, which was high enough for a simple typing job, the only requirement was to complete the work within four days. In addition, the employee had to deposit $40 as caution money as an assurance for the employer to take the assignment seriously. Depositing caution money set my alarm bells ringing, but I was willing to take a few chances.
I deposited the money and received the work in my email. The fraud agent was constantly in touch with me, inquiring about my progress, and he was pretty much happy with my progress. Work was completed and submitted before the due date.
Soon I got a message from the fraud agent; he gave me another number, claiming the man to be the company’s director. He instructed me to inform him about assignment completion and ask for my payment.
The person (presumably the same man who offered me work) asked me about the access card to the company’s work and payment; I had no clue. He sent me a copy of the sample access card and told me to get one made by depositing $250 with a photograph. I was now convinced, it was a scam! The fraud agent kept asking me if I had deposited the money. After losing $40 and putting in 36 hours of work, I understood it was a freelancer scam.
I learned the hard way, but in the freelance industry, one must be alert and cautious about the scams designed to target job seekers, particularly work-from-home jobs. You can also check about freelancer scam red flags and warning signs here.
Seven Signs of Freelancer Scams
Here are seven freelancer frauds that I analyzed after my case study. Freelancers must go through each point carefully, and even save this post for future reference to check if there is a scam.
Data Entry Work — The Most Common Scam.
Data entry jobs are the easiest and do not require any expertise as these are entry-level jobs. It means a good bait for scammers. Here you can learn more about data entry scams. Look for these signs if someone is offering you a data entry job.
· Is he paying you above the prevailing rates for a simple job?
· Have you established the authenticity of an individual or the company?
· If there is token money involved, take it as a scam.
· If they ask you to purchase a software or access card, it’s a scam.
· Don’t start the work without documentation and agreement. Much better to take advance payment before starting the job.
Communication Outside the Platform.
Deal with job offers from authentic platforms only. Don’t communicate outside the platform, scammers will try to pull you out of the safe arena. Authentic freelancer platforms are safe and do verification of employees as well as employers. When you work within the platform, you authorize the worksite to keep you safe from scams.
Raise your guard if the client wants to discuss the work on WhatsApp, Skype or Zoom calls. The best is to say no to outside channel communication, it is one of the red flags of a freelancer scam. If you are ok with external channel communication, it is advisable to get a work agreement made, and also keep the freelancer platform open for safety.
Sample Work.
It is the most common technique adopted by many site owners who want free articles for their sites. They will post a project and tell you to submit a sample article for evaluation. Once you submit the article, it will disappear. I’m sure most freelancers would have experienced sample work scams in their dealings. The client may confirm they liked your proposal and give you another test project to work on. The result will be the same; they will get your work, use it, and dump you.
Here are a few things you must take care of with such clients.
· Give only your published articles as sample work.
· Don’t accept test projects; your previous work samples are good enough to judge your credibility.
· Look for the credibility of the employer, and check previous projects and ratings.
· Do your paperwork diligently.
Information Theft by Phishing.
It is the deadliest freelancer scam since you may give away all your information, including your bank details. It is mostly done by using a tax document form as a part of the verification of tax information. The impostors will send you a phishing link in the garb of a tax document to get your details. Beware these warning signs.
· Don’t open any link that takes you to a third-party link.
· You are not supposed to give any tax information. If someone is asking for it, beware!
· Unless you are a permanent employee, you must not give your bank details and personal information.
· If you are earning a specified amount, you need a GST number,
· Request all your payments online or by using secured links like PayPal.
Check for Fake Jobs Before Committing.
Even when numerous filters are applied to check scams, there is no foolproof way to check freelancer scams. The authenticity of the job and who has posted it cannot be counterchecked. The safest option is to seek a job through job posting channels.
Here are a few things you can check to be safe.
· A good way to check the credibility is by checking the reviews and feedback. A bad review may not be proof of a scam, but a scammer will not have a previous work history.
· If a new client offers rates more than the prevalent, it is a scam. Freelancing is a competitive industry, and people are looking for cheap rates to get their work done; lucrative offer? — beware!
· If someone is asking for caution money or a security deposit, it’s a scam.
· Anyone pulling you out of the job posting platform is a scam.
The Unsought Check Scam.
In some cases, the client forwards a check as advance payment. The cheque value will be higher than the quote. He will tell you the part payment belongs to some other employee and will request you to forward the extra money to the person on the company’s behalf. He will also forward details and a fake ID to make you believe everything is fine.
Fraudsters will try to get the payment urgently, giving some excuse. In all cases, once you pay, the cheque will bounce. Never make payment unless your account is credited with the money, it can also be a case of money laundering or tax evasion; don’t get pulled into another scam. Make a payment plan and stick to it.
Multi-level Marketing Scam.
In a new trick, you will be hired by a company and assured of a permanent or semi-permanent job. Sounds great to have regular work than surfing daily to look for work.
The trick is to lure you into buying a company software or a product stating that it’s company policy to work on secured software.
Another ploy is to give you an access card for payment or compel you to join a scheme. The company may also tell you to deposit security money for a laptop and cellphone shipped by the company. You might think — cool, it’s a security deposit for the laptop.
In all cases, you will pay and will not receive any package. Once you buy the product or the access card, they are done with you. Never agree to buy anything from the employer.
Conclusion.
Freelancing sites provides great opportunities to find work. It covers a wide range of spectrum for all industries and niches. However, attached to it are risks of scams and fake job offers. It is better to keep your guard up to save yourself from tricksters. I learned the hard way, but I would advise all newcomers to be vigilant against freelancer scams.
If you have experience with fraud freelancers or any more suggestions for new freelancers, please share.
