If you're a freelancer or contractor, you've probably had plenty of legitimate jobs that went smoothly. However, not every job posting you come across is legitimate. Task or side hustle scams -- where a scammer posts a job to steal your money or information -- are on the rise.
These scams often target both job hunters and people seeking a simple online side hustle like reviewing products on Google. In the first half of 2024, there were 20,000 task scams reported. That's up from zero reported task scams in all of 2020, according to the Federal Trade Commission.
Often these "opportunities" will come via text or through WhatsApp messages. The work will appear relatively easy, but you won't see any payment after completing the work and handing over your personal information. Here's what to look out for.
What exactly is a task or side hustle scam?
While side hustle scams will try to entrap anyone, contract workers and freelancers are at particular risk. The FTC says these side hustles may be for things like app optimization, which means helping an app improve its performance, or product boosting, which means helping boost a product's search visibility in a search engine. These jobs exist, but ignore unsolicited messages unless you can verify the source.
Stealing your personal information aside, the scammers' goal is often to get you to send them money. In some cases, you'll be working on what appears to be a legitimate app, only to hear that in order to get paid, you have to send them a deposit for work equipment or something similar. It's also possible that a scammer may ask you for your banking information so they can send you money, and instead, you're giving a bad actor your information.
How to tell if that job posting is a scam or not
Here's the good news: There are red flags that this is a job you should steer clear of.
"Some of the most common red flags include unsolicited offers -- particularly through messaging apps -- too good to be true promises, requests for upfront payments or sensitive personal data, an overwhelming sense of urgency or pressure to act quickly, or a lack of verifiable information," said Keith Spencer, a certified professional resume writer from Resume Now.
If you receive a communication or come across an offer that sounds too good to be true, research the entity or person making the offer and have your guard up.
A few other red flags that could spell trouble ahead:
- The job posting is vague. This is a hallmark of a lot of employment scams. That is, what you're being asked to do isn't too clear. A lot of scammers will make the job postings somewhat nonspecific because they're hoping to attract a lot of job seekers.
- The work seems too easy or suspicious. The FTC warns that many task scams involve work that seems too good to be true. You might also be asked to rate products which the FTC says no reputable company will do.
- Your gut tells you something is off. Your intuition is one of your greatest defenses against common scams. If something feels off, get a second opinion and research the person posting the job.
Why are these scams on the rise?
The current job climate could explain why these scams are gaining popularity, according to Spencer. If you've looked for a job recently, you know how hard it is out there.
"Scammers know this and are preying on people's eagerness to find a new role," Spencer said. "Someone who has been out of work for months on end could be more susceptible to falling for a scam as their financial instability grows."
However, according to the FTC, task scams weren't a big thing during previous times of economic uncertainty. But as we're all increasingly online, it's become easier for con artists to take advantage of somebody looking for a job.
This is a gig economy
We live in a side hustle era, and a lot of people are looking for quick ways to earn money. The US Census Bureau released figures in 2023 stating there were 490,000 platform workers in 2021. Platform workers are defined as people who use digital platforms to sell goods or perform services. So think Rover, Etsy, Uber or DoorDash.
Remote work is no longer unusual
Remote work is more popular than ever, and frequently, people will work for and with people they never actually meet in person. That mindset helps the con artist immeasurably. It makes it easier for a gig worker to trust a stranger on the internet. However, it's important to always be skeptical of anyone coming to you with an unexpected offer.
The type of work you want is available for everyone to see
You probably have a LinkedIn page or resumes online at various job sites. You need to put that data out there for real employers to find you, but that information is a goldmine for a criminal who wants to know how to tailor a scam that will hit all your vulnerable spots.
What to do if you're targeted by a side hustle scam
If you suspect you're being approached with a side hustle scam, it's probably best to disengage completely, but if you think the person might be legitimate and you're still trying to figure out what to do, avoid giving out personal information.
Do not send money. It's difficult to even imagine a realistic scenario in which an employee would ever need to send money to an employer, although criminals will often invent what they see as plausible reasons, which is how employment scams often occur. If the job poster asks you to send money upfront, it's a scam.
For instance, maybe they'll tell you that you need to purchase specialized office equipment for your job and want you to send the money to pay for it so they can send you what you need to earn a living.
If you know you've been scammed, you have several options. They may not be very satisfying, but they can help authorities catch the crook -- or at least help others avoid becoming task scam victims.
- Contact your bank and other financial institutions as needed. Your bank can close or change accounts and monitor for suspicious activity.
- Call the police to report the scam.
- Report what happened to the FTC fraud unit. You can also call the FTC at 1-877-382-4357.
- It may be prudent to pay for identity theft protection, especially if you provided your Social Security number. Aura is CNET's pick for the best identity theft protection service.
- If you've given out your SSN, also contact the three major credit reporting agencies: Experian, Equifax and TransUnion. They can freeze credit reports or set up fraud alerts. You'll also want to review your credit reports to flag suspicious activity.
Protect your personal data and get peace of mind with CNET's top pick for identity theft software.
