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Fraud on Freelance Platforms: How Scammers Steal Your Money

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Freelance platforms provide a convenient platform for remote work, but they also become a place for scams. Scammers use various schemes, deceiving both freelancers and clients. To avoid financial losses and reputation problems, it is important to know the main risks and protection methods.

Fake Employers in Freelancing

One of the common schemes is fake clients. They may post attractive projects, promising high pay, but in reality, they pursue fraudulent goals. Main signs of fraud:

  • Refusal to make an advance payment for large tasks.
  • Requiring a test task with a volume comparable to full work.
  • Promises to transfer payment after the project is completed without official deal processing through the platform.
  • Fake positive reviews created through fake accounts.

Some clients also resort to the "frozen project" scheme: they post an assignment, receive proposals, but then disappear, leaving freelancers waiting. This leads to time loss and a decrease in the freelancer's rating due to rejection of other orders.

To avoid becoming a victim of fraud, it is worth working only through secure deals, carefully studying the client's profile, and checking their history.

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Advance Payment Scams on Freelance Platforms

Some freelancers also resort to fraud, demanding advance payment for work they do not intend to perform. They create convincing profiles, use other people's portfolios, and leave fake reviews about themselves.

Additionally, there are cases when scammers receive an advance payment, send low-quality or non-original content to the client, and disappear. As a result, the client loses money and has to find a new freelancer.

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Main Ways to Protect Against Such Schemes:

  1. Payment through secure systems of freelance platforms.
  2. Checking the freelancer's profile, number of completed orders, and reviews.
  3. Using staged payments, especially for long-term projects.
  4. Requesting examples of completed work and communicating via video format for identity confirmation.
  5. Being cautious if the freelancer insists too much on advance payment without substantial arguments.

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Fraud with Freelancer Orders

Some scammers use the "resale" scheme of orders. They receive a project from a client, pass it to a freelancer for a lower amount, and then disappear with full payment. The freelancer is left either working for free or without results.

Another scheme is fake intermediaries. They create ads on behalf of large companies, collect freelancer contacts, and then resell them to third parties. This leads to data leaks and the risk of being included in dubious mailing lists.

To avoid such fraud:

  1. Cooperate only with verified clients.
  2. Do not perform work without a confirmed deal on the platform.
  3. Beware of intermediaries hiding the real client's data.
  4. Check the company's legal information if the work is offered on its behalf.

Scam on Upwork and Fiverr

Popular international platforms also attract scammers. They create fake accounts, use other people's data, and mislead users. Among common schemes:

  • Fake orders with refunds – scammers order work, pay for it, but then file a complaint with support, achieving a refund.
  • Fake freelancer reviews – fake portfolios with reviews are created to increase trust.
  • Fake clients with a request for commission payment – attackers demand money allegedly for deal insurance.
  • Fake vacancies – scammers post job ads, requiring payment for project access or purchasing materials to complete the task.

It is especially important to remember that large platforms never require payment for access to vacancies or the opportunity to participate in projects.

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Protection from Scammers in Freelancing

To minimize risks, it is important to adhere to the following rules:

  1. Work through secure payment systems. Platforms offer fund protection mechanisms that help avoid losses.
  2. Check profiles and reviews. Assessing the reputation of a client or freelancer helps avoid cooperation with scammers.
  3. Do not share personal data and passwords. Scammers can use the information to hack accounts or steal funds.
  4. Use video communication. Direct communication helps verify the reality of the client or freelancer.
  5. Do not agree to deals outside the platform. This deprives protection from the platform and increases the risk of fraud.
  6. Beware of offers that look too attractive. Unrealistic cooperation terms may indicate fraud.

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Freelancing remains a promising direction, but only a careful approach to cooperation helps avoid financial and reputational losses.