10 Common Freelance Scams (And How To Avoid Them)

One of the most common searches that finds ScrawlBug is one of the variations of freelance scams - Elance scam, Guru scam, Freelancer scam, oDesk scam, writer scam or some other similar, less specific term.

I’ve run into several of these myself, so I thought it was time to bring together some of the top scams out there and how to avoid them.

Some are really obvious. Others are nefariously complicated. They’ll all screw you out of your money or work, usually with no recourse.

Be warned: it’s a jungle out there.

1. The unique sample scam

Perhaps the most common and (once you know it) obvious scam on the freelance sites is the one asking for a unique sample of your work. It runs something like this:

Employer: We need several hundred unique 500-word articles written. Budget: $3,000. Please send a unique sample of your work. Note that this is a requirement to apply and isn’t part of the job.

The scam: You write something unique and send it to the employer. They turn down your application. You just gave them a free article – and so did everyone else who applied.

Scam clues: The huge budget is intended to grab your attention and distract you from the fact that they’re not going to pay you for your sample.

What to do: Report the job posting to the site. Virtually all the big freelance sites specifically prohibit asking for free samples because they know it’s an easy way to get content for nothing.

2. The low starting pay scam

Employer: We need a writer for ongoing site content throughout the year. To start with, submit a batch of 20 unique 500-word articles so we can judge quality, speed and content. Budget: $10.  This job could lead to an ongoing position with much better pay once your quality is established.

The scam: You write the batch of articles and send it to the employer. They turn down your application. You just gave them 20 incredibly cheap articles - and so did anyone else they accepted.

Scam clues: The horribly low budget is offset by a vague suggestion that you could earn more in the future.

What to do: Avoid the job or bid at your normal rate. There is absolutely no reason why you should do work for less money as some kind of interview process. If they were serious about a higher-paid job, they’d offer the actual rate and ask for fewer articles to establish your skill.

3. The membership fee scam

Not often seen on the bidding sites because they generally prohibit external linking, this one’s incredibly common out on the web in general. This is especially true in ‘developing’ countries (i.e. not the US or Europe) where the freelance market is much smaller.

Employer: We have hundreds of clients desperate for your work. We have dozens of companies with surveys that need completing. We have work for whatever skill set our site is focussed on. Sign up now for a mere $10 and we’ll flood your inbox with job details!

The scam: You pay the membership fee and get a bit of work. Maybe – just maybe – you get enough work to recoup the cost and make a little extra. They make $10 for every person joining, plus whatever they’re getting from the employers.

Scam clues: You’re paying for something and you’re not sure what you’re getting.

What to do: Unless you are 100% sure that the company really does offer an exclusive marketplace for whatever reason (and I honestly can’t think of one), you should never, ever pay to work. Why on earth would you give money to someone so you can work for them? That’s just deranged: you’re the one who’s going to be doing the job, they should pay you.

4. The newbie, student, WAHM and SAHM scam

Employer: This is an ideal job for students who need a little extra cash, for WAHMs (Work At Home Moms), SAHMs (Stay At Home Moms) or new writers with no feedback or history.

The scam: It sounds great but there’s a reason they’re targetting these people – the pay sucks. They’re playing on your lack of confidence to get cheap, quality work.

Scam clues: A specific employee market. There is absolutely no reason why any of the people listed should produce inferior work.

What to do: Ignore the job or bid at your usual rate. Just because you’re new doesn’t mean your work isn’t as valuable. There is one exception to this: some enormous companies with great reputations take on unpaid or low-paid trainees or interns. In this case, the choice is yours. Is working in an environment like the New York Times worth taking a salary hit? Are you going to learn enough with Penguin Books that you don’t mind doing the job for less money? Do you think they’ll mentor you (check the job listing)?

5. The revenue share scam

I’m not putting down revenue share sites like Helium, HubPages and all the others. I’m talking about the small startup sites that offer a share of the revenue, often in exchange for rewriting scraped content.

Employer: Rewriter needed for an IT blog. You will be re-wording existing content to make it unique and posting on our AdSense blog. Budget: 50% share of site revenue.

The scam: The site will only make pennies for a long time (usually 6-9 months unless they’re hammering the marketing). When it starts earning a lot, the employer simply terminates your contract and lets the money flood in.

Scam clues: Low PR or new site. Only a revenue share offered.

What to do: Some site owners honestly believe their site will power up to a decent page rank and provide a generous income for the work you do. Others know they can scam you into doing a LOT of up-front work for virtually nothing. You could ask for a fixed rate for the first few months with the option of switching to revenue share at a later date and see if they agree. Or you could avoid the job entirely. If you go for it, consider exactly how you’ll get to see the revenue figures.

6. The personal information scam

Employer: We need a particular job done. Budget: $3,500. We’ll pay 30% up-front by direct transfer with the rest on completion.

The scam: The employer asks for personal details so that they can do a bank transfer for the up-front payment. They’ll then use this information as a basis for identity theft and empty your account.

Scam clues: They’re working around the site’s system and will ask for personal information.

What to do: If you think it’s a legitimate offer, ask them to pay through the site or to an online banking system that protects you (Paypal and the like). If they refuse to do this, ask them for a cheque. If that’s a no-no, alarm bells should start ringing so loud that you couldn’t hear an opera singer standing next to you. Report them to the site and run away. Fast.

7. The direct contact scam

Employer: Usual job description. When you are chosen for the job, they ask for your email address or other direct contact details so they can take the work off-site and “avoid the fees” or something similar.

The scam: They get you to do the work then disappear without trace. Because you’re working direct with them, any prosecution would have to be done individually and they know you’re unlikely to bother.

Scam clues: Any request to take the work off-site is dubious.

What to do: Accept direct contact if you want but ask that payment go through the site’s normal system. If they get funny about it, explain that it’s to protect your reputation on the site as well as theirs. If they still refuse, ask for at least a part of the payment up-front, to make sure they’ll cough up.

Important Note: A lot of great clients prefer to work direct with their freelancer. I’ve picked up three myself, all of whom are reliable, honest and a pleasure to work for – but they all started by using the site’s payment system or offered an up-front payment to start building trust. Make sure they’re legit and you could be onto a serious winner!

8. The no-contract scam

This one is generally limited to bigger, long-term projects with low ongoing wages and a big payout at the end, although it can happen on almost any job.

Employer: Agrees details of the job and payment but says a contract “isn’t necessary”. Work begins.

The scam: They either disappear when the final, big payment is due, refuse to pay because you didn’t meet the requirements they laid down or continually expand the scope of the project.

Scam clues: A contract is not something a legitimate employer would refuse.

What to do: If you’re on a big project, make sure you have the necessary documents. No reasonable employer will refuse a contract or agreement, even if it’s just a list of the tasks you are to perform, the remuneration you can expect, the deadline and any important details that must be considered. There are loads of people out there who can show you a standard, simple agreement (writers can go visit Anne, for starters) that will cover you for most jobs.

9. The no-escrow refused payment scam

Employer: Everything looks great. They’re friendly and helpful, the work is good and everything goes to plan until payday. Then they have a problem.

The scam: Usually, this one consists of an employer who pays direct, even if it’s through the site’s system. They don’t use escrow. When it comes to payment, they say there’s a problem with Paypal refusing their card. They use a card their “brother” (or some other person) has. Often, this is a stolen card. A while later, they dispute the payment  (or the actual card owner does).

Scam clues: Unfortunately, there’s no way to spot this one. You can only try to protect yourself against it. One indicator is that the job in question is usually quite a big and complicated affair (like a 20-page research paper) which needs to be delivered quickly.

What to do: Protect yourself as best you can. As long as you’re paid through a site’s internal system, the battle over funds will be between the employer and the site, not you. Even if they provide stolen card details, you’ll get paid and it’ll be up to the site to pursue the scammer when the payment is disputed (and my guess is they have insurance for this kind of thing).

10. The Captcha entry scam

Employer: We need Captcha data entry. We will supply Captchas and you solve them. Budget: $1 per 1,000 entries.

The scam: I learnt about this one recently. While it may actually pay, the idea itself is to gather as many Captcha solutions as possible for nefarious uses – hacking, spamming and whatever else they can come up with.

Scam clues: No one really needs Captcha solutions, except the company itself.

What to do: If you have no qualms typing in solutions so that they can be used to spread virtual destruction and maybe one day access your bank account, go right ahead and take the job.

11. The one I already wrote about

Here’s a bonus 11th scam – the one I already wrote about on this post.

Keep your eyes open and your brain active: avoid the scams!

If anyone has any other scam information, please leave it in the comments below: your fellow freelancers will thank you for it!