How to Spot and Avoid Freelancing Scams When Hiring Online

Hiring freelancers can help a business or agency get the specialist services it needs without committing to full-time employment. However, the same tools that enable remote work also facilitate scams: fake profiles, impersonation, advance payments, phishing, and similar issues can arise.

Anyone who uses online platforms to find and hire independent contractors exposes themselves to the risk of being scammed, either as the person providing services or as the person seeking them.

TL;DR – Common Scams Committed by Freelancers and Clients

Scam Type Typical Warning Sign Safer Response

Fake freelancer profile Can’t verify their work history and qualifications Review work samples, references, and conduct identity checks

Fake client or recruiter Unsolicited offer of employment Verify the person and the company’s legitimacy

Advance payment scam: Asks to pay for the job opportunity. Refuse to pay for the “privilege” of being hired

Fake check or overpayment: Wants you to cash a check and return funds. Do not fall for this banking scam

Free-work scam: Asks to complete a big task for free. Limit unpaid trial tasks to a reasonable size and scope

Off-platform payment scam: Wants to move the conversation or payment off-platform. Keep communication and payments on-platform wherever possible

Phishing or malware: Wanted you to click a link or open a suspicious email. Verify the source before interacting with any links

Task scam: Wanted you to participate in an “online task,” then asked for your money. Recognize the warning signs of a task or “optimization” scam

There are always variations and overlaps, but one common theme among these warning signs is that pressure, irregularities, and the request for sensitive information should make you more wary.

Why Are Job and Freelance Scams a Growing Problem?

There are no official figures on the prevalence of freelance or contractor scams worldwide. Different organizations track their own lists of concerns, which makes it challenging to create a comprehensive overview. With that said, the statistics that do exist paint a concerning picture.

According to the Federal Trade Commission (FTC), reports of job scams increased by nearly 300% between 2020 and 2024, with the value of reported losses rising from $90 million to $501 million.

That figure already represents an increase of more than 1,000% compared to the figures of the previous decade. The FBI’s 2025 Internet Crime Report notes that employment scams utilizing chatbots and voice-cloning software targeted almost 13 million people in 2025, with the reported losses reaching $13 million.

These are only rough estimates, but they demonstrate that job scams, including those that target people seeking to work as freelancers or independent contractors, are a serious problem.

1. Fake Freelancer Profiles

A scammer may pose as a developer, designer, writer, SEO specialist, or any other type of contractor. Someone with no relevant skills and experience could use a fabricated resume, take work samples from other freelancers, and create a profile that appears legitimate at first glance.

Anyone hiring a freelancer should research their work history, samples, and qualifications before responding to their advertisement or reaching out to them.

It is particularly important for agencies that will need to give the contractor access to the client’s website, analytics, or other tools to request verifications in all stages of the onboarding process.

2. Fake Clients and Recruiters

Some scammers targeting freelancers look to pose as clients or recruiters. The FTC has issued warnings about fake recruiters who impersonate legitimate companies and contact people via email, text message, LinkedIn, and other channels. These scammers often request personal information or money, but double-checking is always worthwhile before providing sensitive data or payments.

Anyone who is approached by an “agency” that later asks you to send money or provide personal information should research the company and the person they are dealing with independently. It is also advisable to avoid disclosing personal information or financial details unless a safe and trustworthy relationship has been established.

3. Fake Check and Overpayment Scams

Fake check scams are common in the freelance and contractor space. A scammer sends a check, sometimes for an amount significantly higher than the agreed price, and asks the recipient to deposit it and return the difference.

Recipients may then be asked to purchase equipment, pay another contractor, or even provide funds to “cancel” the fraudulent check. Always remember that a deposited check can be canceled, and the funds transferred back to the sender.

The FTC warns that fake check scams can be particularly harmful because banks typically take several days to determine that a check is fraudulent after it has been deposited.

4. Advance Payment Scams

The FTC advises that legitimate employers do not ask to receive money from a prospective employee. The same principle applies to freelance and contractor work, although the expectations of advance payment vary depending on the area of work and the terms agreed upon by the parties.

Always be wary of scammers who ask you to pay to receive an order. If money is transferred, it is usually difficult to recover it, especially if the scammer provides no work or products in exchange for it.

5. Test Projects and Free Work Scams

Depending on the area of work, a test project can be an appropriate way to evaluate the skills and performance of a freelancer. A company may ask to complete a particular task as a sample to determine if the applicant has the necessary skills.

However, a request for extensive, unpaid work that serves as a trial for employment can be a scam. Anyone who asks to perform a large-scale project for free or below-cost should be especially wary, as this is a common method used by scammers.

Platforms such as Upwork have identified requests for free work as one of the warning signs of a scam.

To rule out the possibility of a free-work scam, it is advisable to request a test project of a limited size and complexity. Alternatively, the freelancer could also demonstrate relevant work samples.

6. Moving the Conversation or Payment Off-Platform

For businesses that operate with contractors, moving the conversation or payments to a different platform is not necessarily a scam. However, it is a security risk, and one should only allow it after ensuring that all interactions are safe.

Upwork warns that job seekers may pressure employers to move the communication to another channel and recommends keeping conversations and payments on the platform whenever possible.

The same advice applies to other platforms, such as Fiverr, which warn users about phishing, suspicious links, and other methods scammers use to obtain personal information. Always be wary of anyone who wishes to move the conversation off-platform.

7. Task or “Optimization” Scams

One of the newer types of scams is the so-called task scam. The con artist offers an online task – for example, rating products or services. An application allows the “worker” to collect rewards, which usually involves depositing their money with the scammer. Similar scams also use the pretext of “optimization” to lure victims.

The FTC has issued several warnings regarding these scams, as they often involve cryptocurrency or other difficult-to-reverse methods of transferring money.

Any suspicious offer of online work, including tasks that promise large rewards with little effort, should raise one’s suspicion. A warning sign is a request to deposit one’s money with the “employer.”

8. Phishing, Malware, and Fake Login Pages

Asking a contractor to provide access to a company’s systems is a legitimate request in many scenarios. However, a scammer may impersonate a legitimate freelancer and attempt to install malware on the victim’s computer.

Someone offering to complete a task or provide a service may send a link, a QR code, or a file with malware or phishing scripts.

Fiverr warns its users to be aware of the risk of phishing, suspicious links, malware, and requests for information that could jeopardize one’s safety. Anyone who receives a suspicious link should examine it before clicking, as the display name can be different from the actual address.

Businesses that use contracting services should be wary of contractors who request access to any of the following:

• WordPress
• Hosting provider
• Google accounts
• Analytics and Search Console
• Advertising platforms
• Customer Relationship Management (CRM) systems
• Payment accounts
• Website of the client

The security of the business is much more important than any potential order.

A Safer Way to Hire a Freelancer for an Agency

An agency typically presents a higher risk than an individual business, as a freelancer may ask for access to not only the agency’s systems but also those of the clients.

A few simple precautions can eliminate many of the risks associated with hiring a freelancer.

Step 1: Verify the Person

Always research the individual with whom you are dealing. Although verification may be difficult, it is advisable to ensure that the person is legitimate and that the work samples and testimonials they provided are authentic.

Step 2: Specify the Task

An agency that hires a freelancer should always put the task description in writing and make sure that the contractor fully understands it. There should be clarity regarding the scope of work, deliverables, due date, required access, and any other relevant details.

Vague requirements present an opportunity for a scammer to extract as much information and data as possible from the agency before being terminated.

Step 3: Limit Access

Unless the task explicitly requires it, a freelancer should generally not have administrator privileges or any other special permissions.

An agency should always give the contractor only the level of access that is strictly necessary to complete the task.

Consider additional measures, such as limiting the user’s capabilities, utilizing third-party services, and implementing multi-factor authentication.

Step 4: Choose the Safest Method of Payment

Anyone who uses a platform to find a freelancer should always understand its rules and limitations. In particular, it is advisable to familiarize oneself with the dispute resolution policies and only move payments to external accounts if absolutely necessary.

An agency that intends to employ a freelancer directly should use a secure method of payment and always request a contract.

Step 5: Conduct a Trial

Before providing broader access and long-term or exclusive rights to the company’s systems, an agency should ask the freelancer to complete a trial task.

If the contractor demonstrates commitment, knowledge, and reliability, they may be given more significant responsibilities.

However, even at this stage, an agency should be cautious and limit the scope of access to minimize the risk of a security breach.

Step 6: Terminate Access at the End of the Project

At the end of the project, an agency must ensure that the freelancer has no access to the systems they were given. Ideally, the contractor should provide all relevant documentation and return access to accounts.

Although this step seems obvious, it is often not taken seriously. An agency must ensure that a former contractor does not retain access to applications, databases, or systems that hold sensitive or valuable information.

This is especially important for agencies that maintain multiple client websites, as the security of these portals is often of critical importance to the business.

Red Flags to Watch Out For

Anyone who uses an online platform to post a job ad or seek an applicant should be aware of the warning signs that indicate that the other party may be a scammer.

Some of the most notable red flags include

Unrealistic offers – extremely high wages for little work,

Urgency – insistence on taking action immediately,

Attempts to bypass security measures – refusal to provide verifiable information,

Unrealistic access – requesting more than the task requires,

Unusual payment methods – reluctance to use conventional payment methods or asking for a deposit,

Requests for sensitive information – asking for information before the beginning of the work,

Unsolicited offers – sending or calling out of the blue,

Refusal to communicate openly – providing insufficient or inconsistent information,

Extraordinary requests – asking to return the money after receiving a check or overpayment,

Suspicious documents – requesting the signing of questionable agreements.

Both Upwork and the FTC list similar warning signs, identifying them as potential security threats.

What Should I Do If I Encounter a Scam?

Anyone who suspects that they have been dealing with a scammer should terminate the conversation or transaction as soon as possible. If any money has changed hands, take steps to recover the funds.

Actions to take:

1. Stop the transaction.
2. Do not provide access to any applications, systems, or documents.
3. Save all relevant information – messages, email, invoices, and payment records.
4. Report the experience to the relevant platform or authority.
5. If money was transferred, contact the bank or payment processor to recover the funds.
6. Change compromised passwords and revoke access to any accounts or services that may have been compromised.
7. Take any other measures to ensure that your safety and data are not at risk.
8. Report the incident to the relevant authority in your country of residence.
9. Contact immediately with our help desk if we may help you to restore your credentials if you are a victim of some cybercrime. This initiative is not an emergency scam prevention service but a proper help desk to guide you.

Anyone whose system, application, or database may have been compromised should treat the situation as a cybersecurity incident rather than a mere disagreement.

Closing thoughts: Freelancing allows businesses and agencies to work with specialists without being fully employed. However, the nature of online work also creates opportunities for fraud. Fortunately, the necessary precautions are usually not very complicated: it is essential to verify identities, task descriptions, and payment methods before establishing trust. Agencies that work with contractors should be especially wary of the risks that online recruitment presents and take measures to ensure the safety of their systems. After all, an applicant can turn out to be a scammer, but an employee can become much worse – namely, an insider.

Federal Trade Commission – job scam report

Federal Trade Commission – fake check and task scam guide

Federal Bureau of Investigation Internet Crime Complaint Center – 2025 Annual Internet Crime Report

Upwork – job search safety

Fiverr – trust and safety