The gig economy is huge and shows no signs of slowing down. With at least 76.4 million freelancers in the United States, scammers have a huge pool of opportunities to exploit — especially with many congregating on the same platforms such as Upwork and Freelancer.com.
Payment off platform scams target freelancers eager to create their own network of clients or tempted by potentially higher rates by circumventing a platform’s fees. Let’s take a closer look.
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How Payment Off Platform Scams Work
Freelancer platforms — for example, Fiverr, PeoplePerHour, or the aforementioned Upwork — are popular because they create safe spaces for freelancers to meet clients. For a fee (either upfront or as a portion of the pay given for work completed), gig workers get access to job listings, messaging services, and protection from unscrupulous clients.
Say, a client doesn’t want to pay. The platform may step in and release the money held in escrow, citing the fact that the work has been completed to the client’s brief and delivered on time. The client will have to pay or risk losing access to the benefits of the platform.
However, some scammers have found ways to use these platforms to their advantage by engaging in payment off platform scams. They usually follow this format:
- A client will post a job listing, often with an appealing, high-figure rate.
- The freelancer gets in touch, and the “client” asks for a piece of test work.
- The test work is requested for free or at a much lower rate, but the client reassures the freelancer that this is just to ensure they’re a good fit.
- In some cases, the original rate is offered — but in all cases, the client will insist that payment is done off the platform, often via PayPal or other web-based financial services.
- Reasons the “client” may give for this include:
- Avoiding fees from the platform
- Them being unable to pay via any other means
- Building a strong relationship from the outset
- They will often also insist that any further communication is done off-platform — as this protects them from repercussions from the platform itself.
Freelancers who agree to off-platform payments leave themselves open to being unpaid or underpaid, and even a loss of reputation. It’s often against the rules of the platform to take payments this way, so if the platform administrators find out, the freelancer can lose standing on the platform.
How to Spot a Payment Off Platform Scam
All freelance platforms have a strict process to follow to get work. Clients usually post jobs with a set fee or ask freelancers to bid with their proposed rates.
Red flags that indicate a payment off platform scam include:
- Very few details about the work required in the job description.
- No organization name provided by the client — even a sole trader should have a name you can look up online.
- Insistence on paying via means other than the platform.
- “Too good to be true” rates — if the rate seems really high for the work you’ll be doing, it’s more than likely a scam.
- Anything that requires you to do “test” work for a lower rate — some clients do require a test piece (whether that’s writing, design work, editing, or any other freelance work). However, genuine clients will always pay the full going rate for this and pay via the platform.
- Communication that halts or becomes hostile if you insist on keeping everything on-platform.
Keep to the platform’s rules and always insist that everything goes through the proper channels. Before you begin work on any milestone, ensure that the milestone is funded. If you later develop a relationship with a client, you can potentially take that off-platform. However, the initial work should always be completed, sent, and paid for using the platform’s interface.
Can You Report a Payment Off Platform Scam?
You should always report any suspected scams or poor client behavior via the platform’s support pages. Many have live support features, and will be grateful for you bringing scam clients to their attention.
Protecting Yourself From Determined Scammers
Keep yourself up-to-date with the latest scams by subscribing to Scam Detector’s Scam Alerts. Our regular emails will help you protect yourself from opportunistic scammers and help you make your freelance career profitable.
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As a former victim, I know the dangers of off-platform payment scams. After reading this article, I feel so grateful because it reveals the pitfalls I have experienced in a simple and easy way.
A few months ago, I received a seemingly perfect job opportunity. The client promised a high salary, but insisted that I pay off-platform. Although I was a little hesitant, I finally agreed to get a higher salary. Unfortunately, the result was that I not only did not receive the payment, but also lost my reputation on the platform.
This article spoke for me that I could not speak for. The importance of protecting yourself from scams and providing useful signs to identify scams. I hope more freelancers can read this article, avoid the mistakes I once made, and ensure that their work is properly protected. Anyway, great article