The IT freelance world is diverse and lucrative—but it's also full of dark corners and scam traps. If you work for yourself without proper contracts, no one is obligated to protect you. And no one will.
These seven schemes aren't new. They've been running for years. Yet they still catch thousands of freelancers who think "it won't happen to me." If you're building remote teams or working as a contractor, understanding these traps is non-negotiable.
Why Freelancers Are Vulnerable
Online, you're just a digital footprint—open to modification and erasure. Scammers are nearly impossible to catch. Virtual legislation is porous in many jurisdictions, so fraudsters operate with impunity.
Freelancers exist in a legal gray zone. You're constantly employed but without the protections full-time employees receive. The contracts you sign are often too basic to include scam-proof clauses. Offshore and nearshore developers face these challenges multiplied across borders.
The 7 Scams Every Freelancer Must Know
The Check Scam
After you start freelancing, the "client" sends an official note with a branded letterhead and a check—allegedly for work expenses (furniture, software, etc.). You deposit the check and transfer money via Venmo or Zelle.
Then your bank notifies you: the account is overdrawn by several thousand dollars. The check was fake. Your "generous" employer vanishes.
Protection: Never deposit checks from unverified sources. Avoid suspicious transactions until you've built 100% trust.
Account Hunting
Fraudsters target Upwork and Freelancer users with long-established accounts, many closed deals, and high revenue. These profiles have credibility—which scammers exploit to send phishing letters and lure victims into off-platform payments.
They often contact you about accounts on other platforms (Upwork users get messages about Freelancer, and vice versa).
Protection: Never move communication off-platform. Platforms protect only on-platform transactions.
Account Access Requests
Scammers ask for passwords and logins to your "unused" accounts—sometimes offering money for them. But even abandoned accounts contain sensitive data: bank details, personal info, profile links, and phone numbers.
Protection: Never share account credentials. Delete unused accounts entirely.
Tax Document Theft
On bidding platforms, you rarely need to provide tax documents. If a client urgently requests a tax form, it's almost certainly a scam to steal your SSN and identity.
Red flags: Tax forms arriving as Word documents. IRS "requests" for bank account numbers and PINs. Forms sent to private email addresses.
Protection: Request all payments through PayPal until trust is established. Never share SSN casually.
Suspicious Payments
Clients offer "alternative" payment: goods and services instead of money, or non-traditional methods like gift cards. These are untraceable and often part of money laundering schemes.
Protection: Accept only PayPal, Payoneer, Wise, or direct bank transfers. Reject gift cards entirely.
Unpaid Test Projects
"Complete this test project to prove your skills. If we like it, you'll get more work." Sometimes this is legitimate. Often, it's not. Scammers collect hours of unpaid work from dozens of freelancers—then vanish.
Ten "volunteering" freelancers can complete an entire project for free.
Protection: Reject all unpaid test work. Offer paid trials at reduced rates instead.
Pay-to-Work Schemes
The "client" asks you to pay for preparatory steps: access to specific resources, purchase of particular programs, or training materials. If this wasn't in the job description, you're talking to a scammer.
Protection: Never pay to start working. Legitimate clients provide necessary tools.
Frequently Asked Questions
Are vetting platforms safer than bidding platforms?
Generally, yes. Vetting platforms pre-check all developers and clients, reducing fraud risk. Bidding platforms have more volume but less verification. If you're a senior freelancer, dedicated team platforms offer better protection and consistent work.
What should I do if I've been scammed?
Report it to the platform immediately—they may be able to freeze accounts. File a report with the FTC (in the US) or equivalent authority. Contact your bank if financial information was compromised. Change all passwords associated with that account or client.
How can I verify if a client is legitimate?
Check their platform history: how long they've been active, payment verification status, and reviews from other freelancers. Google their company name. Verify their email domain matches their claimed company. If anything feels off, trust your instincts.
Don't Become a Statistic
These scams are ancient. They've just moved online. The patterns are predictable: urgency, off-platform requests, too-good-to-be-true offers. Recognize them and you'll never fall victim.
If bidding marketplaces feel too risky, consider vetted IT outsourcing partners with established verification and payment protection systems.
Hire Without the Risk
Skip the scam-ridden platforms. We pre-vet every developer and handle contracts, payments, and compliance so you don't have to worry.
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