Our lives have been made easier by the advancement of technology. Communication has never been easy, but smartphones have made it much easier. Advanced technology is also beneficial to businesses. Globalization has accelerated, and the globe has transformed into a global village. People generally think of job hunting as a difficult task, yet current technology has made it possible for people to work from home. Workers can now work from the comfort of their own homes and earn a good living, a practice known as freelancing. The number of freelancers is growing, contributing to the emergence of a new sector known as “the gig economy.”
Freelancing may appear to be simple employment, but it is anything but, and it necessitates the attention of both employees and employers. Nonetheless, the convenience of working from home is always a positive experience. It allows you to work whenever and wherever you choose with ease, convenience, and flexibility. Unfortunately, freelancing is mostly an online industry that attracts a slew of fraudsters each year. It is critical to combat these scams; otherwise, the gig economy would incur enormous losses.
Scams in the Freelance Industry
In the freelance industry, there are numerous scams. Fraudsters are constantly devising new ways to terrify freelancers, and here are a handful of the most common scams that every freelancer has encountered.
Payments in Advance
At some point throughout their freelancing careers, either the worker or the employer will fall victim to this trick. As proof of validity, the worker can request that the employer deposit some money. Employers, on the other hand, can require employees to transfer monies to establish their identities. In either instance, it’s a con that never benefits any of the persons involved.
Payments Made Offsite
Offsite payments are one of the most popular digital scams. Freelancers agree to get paid on a different platform without realizing that scammers are plotting against them. Workers are left with no money in their bank accounts after completing the task.
Request for Personal Information
When it comes to online security, everyone advises keeping personal information private. On freelancing platforms, too, follow the recommendations religiously. Identity fraud and financial crimes such as account takeover and chargebacks will occur if personal information is provided.
Money Transfers by a Third Party
This is a brand-new type of con that involves money laundering. Freelancers are compensated for their work after it is completed successfully, and employers receive additional income. These additional funds are not a reward for working so hard. Instead, companies request that the employee transfer the monies to another account. The freelancer unwittingly becomes a money mule in the money laundering chain. Never send money on behalf of someone you don’t even know.
How to Protect Yourself from Scams in the Gig Economy
The freelance economy is increasing at a rapid pace, and so is the number of frauds in this industry. Combating these acts is urgently required. Otherwise, workers and recruiters will suffer significant financial and trust losses.
Freelancing platforms should know your customer transaction and verification as one of the most efficient ways to prevent scams including prepayments, bogus job posts, identity theft, and financial crimes. The rigorous verification system verifies freelancers prior to onboarding, lowering the risk of website fraud. Customers’ documents might be checked for fabrication or any other concern on websites. Furthermore, it improves the platform’s trustworthiness, attracting more personnel.
During the COVID-19 outbreak, the majority of workers shifted to freelance websites, and protecting them from fraud is crucial. Knowing how to deal with customers ensures security at all times.
Conclusion
With each passing day, the freelancing economy expands at a rapid pace. Fraudsters, on the other hand, are becoming more skilled in their means of carrying out their nefarious goal. Prepayments, offshore payments, personal information requests, bogus job postings, and money laundering have all increased dramatically in recent years. Including KYC solutions will help all platforms gain reputation and protect all freelancers and recruiters.
