Dennis Horton
Special to The Rockford Register Star
July 9, 2022, 5:47 a.m. CT
Side hustles have become a popular way to make extra money, build a small business, or transition into a freelance career. But not all part-time side jobs and gig workers. Just like with traditional employment scams, con artists use fake opportunities to lure unsuspecting victims into a trap their objective. It may be identity theft, a fake check scam, or a shipping scheme.
Whatever their ploy, scammers hope to get their hands on your money, personal information, or both.
If you are a gig worker you need to beware as well.
The pandemic changed the way millions of people are earning a living or adding to their income. The “gig worker economy” as it is commonly known has put these individuals squarely in the sites of fraudsters.
These workers look for jobs with online apps like, Uber, Lyft, Grub Hub, Instacart and others.
In the case of grocery shopping apps, the scammers use social media to advertise that they can land the big paying orders for you – that translates into larger tips. The rip-off here is the payment of an upfront fee. Legitimate services don’t work that way. If that’s the promise made that’s a big red flag you’re dealing with a scammer.
Scammers have also caught on to the payment system some gig workers use to have their earnings deposited directly into their bank accounts. The crooks posing as representative of the company will send phishing text messages, or emails with a link to an official looking website requesting information. Once that information is received, they can change the banking information and have the funds deposited into their account.
According to the BBB there are a number of things you can do to avoid working for nothing:
- Screen potential clients. If you are approached by an individual instead of a company to do freelance work, like photography or pet-sitting, get to know them before you agree to do any work. Ask lots of questions, look up their social media accounts, and press for a meeting via video chat. Most scammers will avoid meeting you and won’t answer specific questions.
- Keep work on freelance job sites where it belongs. Upwork reports that one common scam on freelancer job sites involves circumvention. In this con, a supposed employer first approaches you on the website. Then, they ask you to do work and accept payment outside of the site. These scammers may try to convince you to accept payment through PayPal or another outside payment method, claiming they want to help you avoid any fees the freelancer website charges. More than likely you’ll work for free.
- Watch out for too-good-to-be-true job postings. Great money. Easy job. No skills needed. Scam.
- Research side gigs before applying. No matter how good a job seems, do your research before applying. Go directly to the company’s website to verify the job posting. Also, do an online search for the job title and company name. If you find the exact same post popping up in multiple cities or people reporting the job is a scam.
- Watch out for work from home scams. Work from home gigs are perfect for students or stay-at-home moms, but they are also more likely to be scams. In fact, a 2020 BBB report found a rise in work from home scams since the COVID-19 pandemic. Jobs such as email processors are scams. Be careful online.
- Be cautious of fake checks. Many scammers offer to hire you for a position, only to tell you they will send you a check for supplies you need before you start work. Typically, the scammers “overpay” and ask you to send back some of the funds via a wire transfer or prepaid gift cards. After you send the money, you’ll find out the check is no good.
- Never pay to work. You should never have to pay a fee to apply for a job or to get a position. Also, a legitimate company won’t pay you anything before you’ve done any work.
- Get all details in writing. Put together a basic contract that details the services provided, timeline, and the amount paid. Scammers will avoid providing or agreeing to specifics.
- Guard your personal information. Be cautious of any job that asks you to share personal information right off the bat. If a company insists, they need a copy of your driver’s license or bank account information, be sure you’re dealing with a legitimate business before you hand over that sensitive information
Dennis Horton is director of the Rockford Regional Office of the Better Business Bureau, which serves Winnebago, Boone and Stephenson counties among others in northern Illinois.
