Being a freelancer has its benefits, for example, the ability to be your own boss and work your own hours. But like most things, it has its downsides, and one of the biggest is the growing presence of freelance scams.
The best way to protect yourself? Education. Knowing the red flags and understanding how these scams operate can save you a lot of time and worthless headaches. To help with that, we’ve rounded up some of the most common scams in freelancing and tips on how to avoid being a victim to them.
Common freelance scams and how to recognize them
- Non-payment scam
Probably the most infamous scam in freelancing: you complete the work, hand it over, and then… the client vanishes. The red flags here are always pretty consistent, for example, the communication between you and the client is vague, there’s an unwillingness to sign contracts, or hesitation to pay any sort of upfront deposit.
Another subtle warning sign is clients who continuously delay payments with excuses like “accounting issues” or “next week’s payday.” While these may sometimes be genuine, it never hurts to keep your guard up.
- Fake listings
This scam usually starts with an enticing opportunity on a freelancing site or a social media platform where you’re required to pay a fee upfront to access the job or “secure your spot.”
Similar to the last one, recognizing this scam is easy since the listings are often too good to be true—think high pay for minimal effort. If you see something that feels more like a dream job than reality, it’s worth digging deeper.
- Free work sample scam
This one can be tricky to spot because, at first glance, it seems reasonable. A client asks for a sample of your work to assess your skills. But instead of a small task, they sneak in a full-fledged project disguised as a “test.”
It’s worth keeping in mind that if a client requests multiple detailed samples or asks for unpaid trial assignments, you’re likely dealing with a scammer. Be cautious and set clear boundaries (we’ll touch on how to handle this later).
- Escrow payment scam
This scam in freelancing involves a client claiming to use an escrow service to hold your payment securely. However, the service is either fake or being used as a way to trick you into a false sense of security while the scammer disappears with your work or your personal information.
Recognizing this scam can be a bit tricky since you may not be aware of which escrow service is legit and which is not. Legitimate escrow services will always have a professional, well-documented website and processes in place. If the escrow service seems fishy or non-existent, proceed with caution.
If you’re still unsure of knowing how to detect malicious websites, re-consider engaging with clients who use escrow services.
How to avoid falling for freelance scams
Now that we’ve touched on the most common freelance scams, we’ll show you simple and effective strategies to stay safe:
- Always use contracts
As a freelancer, you should be aware that contracts are more than just a formality, but rather your safety net. Make sure that every project comes with a contract that clearly outlines the scope of work, payment terms, deadlines, etc.
As we said before, if a client refuses to sign one, consider this a major red flag.
- Screen clients thoroughly
We know, doing this sounds like more work, but it is a vital step in today’s freelancing world whether we like it or not.
You can never be 100% sure of the intentions that your client has for you, but you can check for online reviews, verify their email domain, and see if they have a legitimate online presence. Be wary if your client cannot provide a credible reference or business information.
- Set clear terms for samples
If a potential client ever asks you for a sample, make sure it is a limited, non-specific task that does not equal a complete project. You can also protect your work by watermarking samples or submitting incomplete versions until your payment is secured.
- Trust your instincts
If something ever feels off, trust your gut. Always remember that a legitimate client will never pressure you into making rushed decisions or try to bend your rules. If they refuse to answer your questions or are vague, it’s better to walk away than risk being scammed.
- Use reputable freelance platforms
Freelancing platforms like Upwork, Fiverr, and Freelancer offer added layers of protection, such as verified payments and dispute resolution. Even if they may take a cut of your earnings, you’ll find that the peace of mind they provide is often worth it.
Conclusion
One of the most independent careers will obviously offer you a lot of freedom, but not without its risks. Scammers are always looking for new ways to exploit freelancers, so make sure to stay vigilant and trust your instincts.
By learning to spot scams and taking preventive steps—like using contracts and screening clients—you can keep your freelance career scam-free!