Managing your finances as a freelancer is one of the responsibilities you get alongside the flexibility and independence of freelancing. This comes with inherent risks, including losing money to shady apps that can lead to time wastage and emotional distress. In search of payment solutions with great perks, promising heaven and earth, many freelancers have fallen prey to elaborate financial scams. Some scammers use fake identities on social media and freelancing platforms, posing as clients, recruiters, or freelancers to steal from unsuspecting persons. To help you learn from their experience, we have curated this case study of freelancers who lost money on shady apps.
Also read: 5 red flags when choosing an international payment platform
Impersonation scams are a type of fraud in which criminals deceive you by pretending to be a trustworthy person or organisation. The scammer's goal is to manipulate victims into providing personal information, transferring money, or performing actions that benefit the fraudster.
An X user shared her experience of being impersonated by a scammer to defraud a developer. The victim claimed to have paid her for a job that was never delivered. Apparently, the scammer had used the X user’s identity, promising to offer certain services for a said fee. The incident highlights how shady actors exploit social media apps like Telegram or X to create fake identities, often linking to fraudulent payment apps.
Wallet drainer scams use malicious software or smart contracts to trick cryptocurrency users into unknowingly authorising transactions that steal all of their crypto. Unlike simple phishing scams that steal login credentials, drainers operate by getting the user to sign a seemingly harmless permission that gives the scammer control over the funds. These attacks are becoming increasingly common and sophisticated, resulting in significant financial losses.
An IP and corporate attorney recently shared how they lost over $5,000 to one of those links. The scammer posed as a legitimate client and sent a transaction link via Telegram as a retainer payment. Clicking it drained the victim’s wallet.
Fictitious freelance job scams are fraudulent offers designed to steal personal or financial information, charge for non-existent work, or trick freelancers into performing free work.
This is one I have experienced a couple of times using freelancing platforms some years ago. Luckily, the gigs appeared too good to be true, so I didn't fall for them. One of the ‘clients’ requested we continue the conversation on Telegram. That was another red flag. I decided to research the company he claimed to be working for. The company’s website stated that they don’t recruit via freelancing platforms and warned against scammers.
However, not everyone has been fortunate enough to avoid these scams. A victim’s Medium post recounts his experience with two fictitious freelance job scams via freelancing platforms. The author fell for one of the scams and lost some money.
Security fee scams are a type of advance-fee fraud where scammers trick victims into paying an upfront fee to receive a promised reward or service that never materialises.
A freelancer narrated on Nairaland how they got a gig from a freelancing platform, and the “client” insisted on a security fee before handing over the job. After the freelancer paid the money, the client blocked communication and disappeared.
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Scammers have many more tricks they can pull out of their sleeves using shady apps and scams. Freelancers must remain vigilant to avoid falling victim.
Also read: A freelancer’s guide to avoiding payment scams online
Finally, ensure you receive payments with reliable platforms like Grey. Grey offers multi-currency accounts that integrate seamlessly with freelancing platforms. The platform is regulated by global agencies and complies with AML and CTF regulations. All users are vetted and verified through a Know Your Customer process. Your funds and data are protected by robust security features to prevent loss due to hacking.
Get started with Grey and move money the secure way.
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