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(even though the video is focused on Upwork, it applies to all platforms.)
I've been getting several messages asking help identifying Upwork scams. Lots of freelancers (especially new ones that badly want work) fall for these scams. This post should help you identify scams before you fall victim to them. (Most of these rules aren't solely limited to Upwork and can apply to any kind of online work)
There are several red flags for Upwork scams. What I mean by 'red flags' are that when you encounter these, it's a 99.99% probability of a scam.
So just stay away from job listings or clients that show these red flags.
If a client for an hourly project indicates that they want to track your work NOT using the official Upwork Team App, withdraw your application for that job immediately. Most likely they won't ask you to not track in the Upwork Team App directly, but they'll just ask you to track your work or hours outside of Upwork.
This one is pretty big. Yes, Upwork charges high fees, but it offers payment protection and conflict resolution for freelancers and clients. For hourly projects, if you track your hours in the Upwork Team App, you will get paid. For one-time projects, if you do the work and can show it to Upwork, you will get paid. If you don't go through Upwork, you lose this protection. Most clients who try to scam you are charming and know exactly what to say for you to trust them. They'll make false assurances and say that they're good people, but I've seen too many freelancers getting scammed by 'honest and good people' to let you fall for those tricks.
All the information a client needs is on Upwork. If they ask for your address, phone number, or other information - don't give it. An exception could be made for Skype. Some clients just prefer using Skype, but Upwork highly discourages communication outside their system and I do too. You can insist that your client stick to communicating in Upwork.
Some clients want you to submit 'sample work' or for you to 'prove your skills' before hiring you by having you do extensive tasks. A lot of them are just looking for you to do work without paying you. If they want you to 'prove your skills', they can ask you interview questions or simple tasks (that take less than 30 minutes). Anything more than that and they're just looking to exploit desperate freelancers
Some clients will ask you to pay 'workstation fees' or 'registration fees'. Don't. No matter what a client says it's for, you don't have to pay them anything. If they need to purchase software or equipment for you, they should pay it themselves.
I've heard of listings that say they'll pay you $25/hr or $100/hr to do simple tasks. No business in their right mind would do that. If it's too good to be true, it's probably a scam.
Aside from red flags, there are what I call 'warning signs'. These don't necessarily mean that the job listing is a scam, but that you just have to be careful. I'd say that jobs with warning signs have a 30% chance of being scams.
To be fair, clients have to create new accounts. But most scam accounts will be new accounts. It's not wrong to work with a new client, just be careful.
Some may want to communicate on Skype just because they prefer it that way. My suggestion is to keep all communication within Upwork, but some clients don't like the system. Nothing wrong with that. But once again, be careful. My advice here, though, is to not give your Facebook account. I count Facebook as personal information, so it shouldn't be required for business communication.
Some clients may use systems you're not familiar with. For example, Trello, Asana, and Everhour are all common tools. However, most of the time, they should hire you first before asking you to create accounts. Better yet is when they create the accounts for you - as most clients do and should.
On the positive end, there are what I call 'green lights'. These are signs that a client is most likely legitimate. When dealing with these kinds of clients, you can be more relaxed dealing with them. However, still be vigilant if they warning signs or red flags.
The following are my green lights:
If the clients has one or more of the above, it doesn't assure you 100% that they're legitimate. But it means that there's a very small chance that they'll try to scam you.
As mentioned earlier, new client accounts are warning signs, but not necessarily scams. Here are some tips on dealing with new accounts.
It could be 50% or 25%, but it should be a good enough amount that you won't be devastated if the client doesn't pay the remaining amount
Usually, for jobs of $100 or more, you'd have multiple milestones. For example, when 30% of the work is done, you'd get paid 30%. When 60% is done, you'd get another 30%. And when you submit the completed task, you'd get the remaining 40%. This reduces the chance that you'll get scammed.
As I mentioned previously, ALWAYS use the Upwork Team App for hourly work. No exceptions.
I hope this post doesn't discourage you from using Upwork and looking for jobs online. Working online is a wonderful opportunity and 95% of the clients and work out there is legitimate. It's just the 5% of scams out there that we hear about, but if we know how to spot and avoid the Upwork scams, we can focus on the 95% of legitimate jobs.