BBB Business Scam Alert: Hiring freelance help? Watch out for impostors
Small businesses looking to hire a freelancer online, beware. Scammers are creating fake accounts on platforms like Fiverr and Upwork. They use photos and resumes of real professionals and entice businesses with low rates.
How the scam works
You are looking to hire a freelancer, such as software developer or graphic designer, to help with a project for your business. You decide to post the gig on a website, such as Upwork or Freelancer.com, where you can connect directly with independent contractors.
On that site, you find a freelancer who looks perfect for the job. According to their resume, they have the knowledge you need and years of experience. And best of all, this freelancer’s rate is far below what other similarly qualified people charge. You decide to hire them and pay a deposit upfront. Your new contractor seems to get to work. But weeks pass, and the project still isn’t finished. In fact, your freelancer stops responding to messages.
Unfortunately, this "qualified freelancer" is likely an impostor. Scammers are stealing the photos and resumes of real independent contractors and posting them on freelancer sites. They may even contact freelancers directly and ask to use their profile in exchange for payment or promise of future work.
According to a recent BBB Scam Tracker report, a consumer hired a freelancer via Fiverr, agreeing to a $2,000 total fee for a job, with $1,000 paid upfront through Payoneer. The freelancer later demanded an additional $12,000, completing only a fraction of the work. When the consumer requested a refund, the freelancer refused, citing time invested. Attempts to resolve the issue through Payoneer were unsuccessful, as the platform sided with the freelancer. The consumer expressed frustration over the lack of victim support and accountability from the payment platform.
Tips to spot a freelancer impostor scam:
- Watch out for "too good to be true" rates. Before hiring a freelancer, do some research and know the standard hourly rate for the position you want to hire. If an experienced candidate is advertising a price well below that – for example, a professional web developer who charges $25 an hour – it’s very likely a scam.
- Do a video interview before hiring. Always speak with top applicants over video chat first. Make sure they match their photo and have the knowledge and experience they claim in their profile. Put that requirement in your job post to help weed out scammers.
- Find your freelancer on other platforms. Look for your freelancer’s LinkedIn profile, portfolio website, or social media presence. This will help you confirm their identity and experience.
- Report phony accounts: To report a suspicious account on Upwork, click the “Flag as inappropriate” button. Learn more about reporting scams on Upwork.
- Freelancers, make sure you aren’t being impersonated. Scammers can steal your photo, portfolio, and resume from sites like LinkedIn. Be sure that someone isn’t impersonating you online and hurting your reputation.
For more information
Learn more about staying safe on Upwork with these tips. Read more about impostor scams on BBB.org.
For more about scams, go to BBB Scam Tips (BBB.org/ScamTips). To report a scam, go to BBB Scam Tracker.
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Additional Resources
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