Have you ever been contacted by a freelance client who wants to hire you, but it doesn’t feel right?
If yes!
As a freelancer, how do you know whether your freelance client is legitimate and not trying to scam you?
If you’re wondering how do I protect myself from scams as a freelancer?
You’re in the right place!
In this post, I’ve listed 17 common freelancing scams you must spot and avoid!
After reading this post, you’ll know how to recognize freelancing scams and deal with such scammers smartly.
Let’s dive right in!
Is Freelancing Legit?
Yes, freelancing is a legitimate way to make money online. You can find many freelancing websites that allow you to sign up and start bidding on projects.
However, you must be aware of freelancing scams.
Many frauds pose as clients and ask for milestone payments before starting the project. Once they receive the payment, they disappear, and you will not get your money back.
Freelancing scams happen to anyone, and many freelancers fall for scams. Still, it’s especially common among new freelancers who have a limited amount of experience.
Despite fraud in freelancing, there are still many opportunities for honest, hard-working individuals to find quality freelance work.
Freelancing scams are a growing problem in today’s economy. In the U.S., there was about $1 billion worth of unpaid wages from freelancers alone last year, and that number is only going up as more people turn to freelance work for their careers.
Types Of Freelancing Scams:
When looking for a freelance gig, it’s important to be aware of the various scams.
There are many different types of freelancing scams, but all these scams have one thing in common the promise of easy money for little work.
Here are the most common freelancing scams and how to avoid them:
#1: Upfront payment requests
One common warning sign is asking for an upfront payment. It can be a “registration fee,” “training fee,” or another type of fee. The scammers will often promise high pay for little work or guarantee a job after payment.
These scams typically include the promise of a high-paying job with little or no experience required. The scammer often requests an upfront payment for training materials or other services.
How to deal with it?
Do not fall for this scam! Many legitimate freelancing websites and companies do not require any upfront payments. Don’t respond or agree to such conditions.
#2: Personal information requests
One common freelancer scam is posting fake job advertisements on websites and social media platforms. These ads often look legitimate, promising good pay and flexible hours.
However, when you respond to these ads, they may ask you to provide personal information like your social security number/ bank account details. This information is used to steal the victim’s identity or defraud them financially.
How to deal with it?
Strictly avoid giving out personal information in response to an unsolicited request.
#3: Fake job postings with fake proofs
When looking for freelance work, be aware of the traps that scammers may set for you using fake job postings. This type of scam typically involves creating a false job listing and then asking people to apply for the position.
The fraud may even go so far as to set up a fake website or email address to make the scam seem more legitimate.
They may try to show you “proof” in the form of offer letters or testimonials, what appears to be legitimate proof of their previous work, in the form of offer letters or testimonials. But these can be easily faked.
These scammers will often make an offer that is too good to be true to get the victim to sign on without doing their due diligence.
Their goal may be to get their work done for free or steal your personal and sensitive information.
How to deal with it?
Do your research and be cautious before accepting any job offers. If you don’t find any such online website, then don’t respond to them. If you find any contact details from the website, try to contact them and confirm their social profiles like LinkedIn. But still, if you feel anything fishy or the offer is more than what you deserve, then block them immediately.
#4: Pressure to start work immediately:
Many freelancing scams target people who are looking for work-from-home jobs. One of the most common scams is the pressure to start work immediately.
They will often say that the job is only available for a short period and that the victim needs to start to join immediately.
Be alert if someone ever contacts you who pressures you to start work immediately without even finalizing the payment! It is a strong sign of a scam.
How to deal with it?
If you doubt the slightest, especially when you cannot find any legit information about the company or client, just walk away. Remember, it’s better to avoid such traps and wait for legit opportunities as you can’t afford to get scammed in at any cost.
#5: Request to take the communications off the freelance platforms:
As a freelancer, you have probably experienced the frustration of dealing with clients who want to take communication off-platform. They usually use Skype Telegram, or WhatsApp.
While there are many reasons why a client may want to do this, it is usually not in your best interest.
Here are reasons why you should avoid taking communication off the platform:
1. It can be difficult to keep track of communication when it is not in one place. When all your communication with a client is in one place, keeping track of your project and payment discussions is much easier. If you start communicating offline, losing track of important details can be easy. In that case, nobody would be there to resolve disputes.
2. You will miss out on the protection that the platform provides. When you communicate through a marketplace or job board, there is usually some level of protection for both parties.
How to deal with them?
If a client asks for video communication, almost all freelance marketplaces have Zoom, Google Meet, and Skype integration within their websites. You can always use them.
But, if there is an issue connecting via freelance platforms, you may agree to communicate outside freelance platforms like Upwork, PeoplePerHour, or Fiverr. But you must continue payments and projects via freelance websites.
And be careful, as Fiverr is strict and never tolerates you exchanging any email addresses or phone numbers in chat.
So don’t even think of doing anything like that on Fiverr. They will suspend your account immediately for violating their terms and conditions.
#6: Requests for free work/test job
Some scammers post these fake job ads and then contact all freelancers who apply, asking them to do a free test job before hiring them for the position.
The scammer will then take all of the test jobs and use them as their work without ever paying the freelancers who did them.
How to deal with it?
Never accept a free test job; ask for a paid trial when the client demands a trial.
#7: Promises of more work in the future
When you’re looking for work, it’s easy to be taken in by promises of more work in the future.
Here’s how it works: the client will contact you and ask you to do a job, usually for a cheap rate. They’ll tell you that if you do a good job, they’ll give you more work in the future.
But once you’ve done the job and paid, they may ask you to continue working for the same price or disappear and never contact you again.
How to deal with it?
Don’t be taken in by this scam! If you come across this situation, you should first try to negotiate a higher rate.
If a client offers you reduced rates in exchange for more work in the future, make sure that they’re legitimate and that there’s a contract in place. If the client refuses, then your only other option is to walk away.
#8: free Internship Work-From-Home Job Scams:
When it comes to finding a job, internships can be a great way to get your foot in the door.
But beware! These listings are often scams created by people looking to take advantage of desperate job seekers.
How to deal with it?
Here’s how to spot a fake internship listing and what you can do if you’ve been scammed:
Never sign any contract that binds you to a free internship. Check websites and LinkedIn profiles to see any red flags or negative reviews if something sounds too good to be true!
#9: Phishing emails
Phishing scams are the most common online scams, especially for freelancers who are looking for work online.
Whether it’s a fake email from your “bank” asking you to verify your account information or a “job opportunity” that requires you to enter your Social Security number, these scams can be pretty convincing.
How to deal with it?
- Never click on any type of links in the email, even if they look legitimate. If you’re not sure, go to the company’s website directly and find the contact information there.
- Don’t enter personal information into any forms sent to you via email.
- If there are any red flags, move on and don’t reply.
#10: “Get rich quick” schemes:
This is perhaps the most common freelance scam out there. You’ll be promised a large sum of money for very little work or told that you can make a fortune by working just a few hours per week. Be wary of any job that sounds too good to be true – chances are, it is.
You’re promised a large sum of money for processing payments through your bank account. However, the payments turn out fraudulent, and you’re left on the hook for any fees or charges incurred.
How to deal with it?
Don’t respond to them, and don’t click on any links you receive from these scammers.
#11: Offers to buy services/products
Some fraudulent clients may also target you by sharing anonymous links and encouraging you to click on links and make a purchase. If you click and enter payment information, you may give away your personal and financial information to criminals.
How to deal with it?
Just block them and never click on any payment links.
#12: Request to access your freelance account
Freelancers increasingly turn to freelance websites like Upwork for flexible, remote work. However, many don’t realize that these platforms can be rife with scams.
Here’s how it works: a scammer will reach out to you and request access to your freelance account in return for payment.
And here is the reply from the expert:
For example, They could ask for access to your Upwork account and offer to pay you some money.
Once they have access, they can use your Upwork profile to apply for jobs on your behalf and pocket all extra cash.
How to deal with it?
First, report the user to the freelance platform use are using. You can also take screenshots of the conversation and any other relevant information and send them to the freelance website’s support team.
#13: Unusual and insecure forms of payment methods
As a freelancer, your client may ask you to use an unusual payment method that is not secure.
In the hope of getting paid the full amount and getting rid of the freelance platform service fee, many freelancers agree to take the payments outside freelance platforms.
And it’s insecure even if the client pays through secure payment systems. Who will assure you’ll get paid for sure?
Freelance platforms not only ensure that your payments will be secure, but they will also have a dispute-resolution system in place. It is your protection against clients who try to scam you. Plus, you’ll get reviews and ratings that help you get your freelance profile.
So, isn’t the freelance platform service fee worth it?
Think of it as if you are paying a small rent to these freelance websites for allowing you to sell your freelance services on their platform.
How to deal with it?
First, remember even trustworthy Payment options like PayPal and Payoneer don’t have any payment protection system or escrow service that may guarantee your job and payment security.
Don’t trust new clients for payment outside freelance platforms.
However, if you already have a retaining client who offers you such ideas, you may consider it. But remember, you are responsible for your loss and profit in this case.
Make sure you trust your client, your freelance profile is already built, and you no longer bother about missing out on freelance platform benefits.
#14: Suspicious talent agencies
Many talent agencies claim to help freelancers find work. However, many of these agencies are actually scams. They may charge high fees, promise to find your work, and then never follow through. Or, they may send you spammy emails or calls offering low-paying jobs.
How to deal with it?
Always do proper research before signing up with an agency. Read reviews from other freelancers, and check out the agency’s website and social media accounts.
Beware of agencies that require you to pay a fee upfront. Legitimate agencies should only take a commission after they’ve helped you find a job.
Be cautious of agencies that guarantee they’ll find your work.
#15: Fake contest scams
As a freelancer, you’re always on the lookout for new opportunities to score some work. But as you search the web for new gigs, be aware of fake contest scams that could leave you high and dry.
Contest scams are becoming increasingly common, as scammers target unsuspecting freelancers looking for an easy way to make some quick cash.
Here’s how these scams work:
The scammer will post a job listing or contest offering a cash prize for the winner. They may even create a fake website or social media page to make the contest look legitimate.
You need to submit your personal information or a work sample to enter such contests. But once you’ve submitted your entry, the scammer will disappear with your information – and your money.
So how can you avoid being scammed?
Don’t trust job listings that: Require you to pay a fee to enter the contest and don’t have a working phone number or contact person.
#16: Monthly payment schemes
The scammers will convince you for monthly and weekly payments and bulk delivery.
In order to make this seem like a legitimate opportunity, they will often offer high salaries and benefits, which sound too good to be true.
But the catch is that you won’t actually receive anything – ever. Instead, you’ll be spending your money on nothing more than a fraudulent scheme.
So how do you protect yourself from this type of scam?
Whenever you work with any new client, never agree to deliver work without any specified price deal.
Don’t trust them if they try to convince you to start working and get paid weekly/monthly. Instead, ask them to pay 50% in advance or deliver them very little or incomplete work.
While working with a client for the first time, you must avoid delivering bulk work without payment surety and agreeing upon instant payment per project. If you receive 2-3 successful payments, you can consider a weekly or monthly payment cycle.
#17: Work samples and Cover letter stealings
Usually, freelancers post fake jobs to get noticed. They do it to either check/ steal work samples and cover letters from other freelancers that they can use for themselves.
How to deal with it?
You must avoid posting fake jobs as a freelancer. Avoid sharing too many work samples, or add a watermark in your work samples so that nobody can copy or misuse them.
How To Spot Freelance Scams?
There are a lot of scams out there.
So, how can you tell if the freelance work you’re interested in is real?
You must look at a few key things while determining if a freelance job is real.
You can go through the guidelines for work-from-home employment issued by Federal Trade Commission.
Follow these tips to verify if a job is real:
- The first is to make sure the job listing includes a detailed description of the work that needs to be done. If the listing is vague or seems like it was copied and pasted from another site, it’s likely a scam.
- Check the company’s website to find its physical address, email address, and phone number. If there’s no website or their social media accounts seem fake, it’s probably best to steer clear.
- Google the company name + “reviews.” If there are mostly negative reviews, that’s another red flag.
- See if the company is listed on LinkedIn, Indeed, or Glassdoor sites.
- Ask for more information about the job before you commit to anything. A legitimate company should be able to give you more details about the job or role.
- Pay attention to feedback other freelancers leave on a client’s profile on freelancing platforms.
- Beware of jobs that require you to pay money upfront – this is usually a scam.
- Another huge red flag could be if the company/website asks for personal information before you’ve even spoken with them, such as your Social Security number or bank account number.
How can you identify a scam on Upwork and Fiverr?
While looking for freelance work on Upwork, it’s important to be aware of the potential for scams.
Some key points to look for that may indicate a scammer:
- They may have incomplete profiles, usually with blank profile pictures and nicknames.
- They don’t have a verified payment method.
- They’re from a developing country and seek free work from freelancers.
- Their job posting rate is high compared to their hiring rate (look at reviews to see if this is the case). They have mostly negative reviews.
- They’re offering an opportunity that seems too good to be true.
If you see any of these red flags, it’s best to move on and find another freelancer to work with. Don’t let yourself be scammed – knowledge is the power to avoid fraud on Upwork!
steps to report suspicious activities on Upwork:
- Click on the job description that looks suspicious.
- Click on the flag as inappropriate
- Choose any option or write your own reason and submit it.
steps to report suspicious activities on Fiverr:
- Login to your Fiverr account
- Open your inbox and select the chat with the buyer you want to report.
- Click on the buyer’s profile
- Click on report
To find out how to identify fake clients on PeoplePerHour watch this video.
Best practices to avoid freelancing scams:
Never click on any sort of payment link.
Don’t hesitate to ask questions until you get clarity about the company, job, or client authenticity.
Have a clear agreement with your clients about everything before starting any freelance work. Use contracts if you take projects directly via social media or your website. These contracts will protect both parties and clarify what each person is expected to do and what they can expect from the other party.
Avoid unnecessary text, email, audio, Skype, or video conversations outside the freelance platforms.
Never accept checks or wire transfers. These are called “under the table” payments, and this type of payment is actually illegal. It’s not like paying someone via Paypal or Payoneer, where there’s always some kind of support system if something goes wrong – it just means that your money is gone, and there’s nothing you can do about it.
Avoid freelance job postings that don’t pay you at least 50% upfront before doing any work for them.
Stay away from shady freelance websites like Freelancer.com. Can freelancers be trusted? There is no definite answer, but compared to other freelance websites like Upwork, Fiverr, and PeoplePerHour, Freelancer.com seems to have the highest scam rate and poor customer support.
Do your research before accepting any offers. Review sites like Trustpilot (for example) allow people to leave reviews and comments about any company they’ve dealt with in the past, providing an excellent resource for finding out who is legitimate and who might be trying to trick you.
Consider using an escrow service if you deal with clients outside freelance platforms. There are many good escrow services out there that you can sign up with and use when working for clients outside freelance platforms safely. This is a great way of ensuring that your money always reaches you and that you’re not left chasing your tail when trying to get some work done.
Set up milestones for big projects when you’re working with new clients: Using freelancing sites to protect your payments, you can set up milestones for such projects. You can find out more about milestones
Are Freelancing Jobs Safe?
Yes, freelancing jobs are completely safe if you take the necessary precautions to avoid falling for freelance scams. Always remember to communicate with your client, set clear expectations, set a secure payment system, and get everything in writing.
With a little planning, you can avoid potential problems, safely freelance, and make a high income.
Now let me know
Have you ever been scammed online?
Which tips will you follow to stay protected from freelancing scams?
Share your experience to help others!
