Freelancers, beware of this remote working scam

Heads-up to all freelancers! There is a remote working scam that is going around and since we have a lot of freelancers these days working from home as a result of the pandemic, be aware of this scam if you are one.  The victims suffered significant financial losses. Wordfence, an industry leader that specializes in monitoring security of WordPress sites, is warning about this scam on their blog.

Here’s how the scam works

1. The scammer posts a job ad on a job board or platform for online jobs. Wordfence reports that the common job description is “Data Capturing” but they have also seen offers for other roles.
2. An interview is conducted with the applicant. Wordfence says the cases they had seen involved “interviews” using Skype direct messaging. Usually, two of these scammers interviewed the applicant-victim. One poses as a coordinator; the other as a manager. The victim is actually shown a website which is purportedly the company the victim is applying to. Everything looks legit so far.
3. The applicant-victim goes through what seems like an actual job interview, is told to wait while the employer discusses with the recruitment team, and is eventually told he/she got the job and that they would provide the required furniture, office supplies, and so on. The victim is asked to source the required work equipment from the company’s local vendor.
4. The scammer sends the victim a check with instructions to encash it and buy from their preferred vendor. In most cases, the check does not immediately clear the victim’s bank as there is a clearing period. In the case of freelancers in the Philippines, a U.S. check usually takes as long as 8 banking days to clear. The victim, thinking that the check is a sign of goodwill on the part of the client-scammer, voluntarily puts out and advances the money for these so-called requirements and purchases from the preferred vendor, not realizing that the vendor is actually the scammer who now has the victim’s money.
5. The check turns out to be a dud and the victim is left with several thousand dollars in the red.

How can you avoid becoming a victim of this scam?

Wordfence has its own tips for avoiding becoming a scam victim but they are more relevant for those in the U.S. and may not be applicable here in the Philippines. So here are my own personal tips for Philippine freelancers to avoid falling for this scam:

1. Be aware that very few companies interview through direct messaging. If Skype or some other online conferencing platform like Zoom, Google Meet, or similar platforms are used, the employer usually will do it with video open so you can see them and vice versa. Anyone who wants to communicate with you only by direct message should be treated with caution.
2. Never spend your personal money at the onset of a new job. It can be tempting to do so especially if you need the job badly but remember that if it is a scam, you may turn out in an even worse financial position than before. If you are sent a check, always inform your potential employer that you need to wait for the check to clear before you purchase their requirements. You can always say that the reason why you are freelancing is because you are not in a position to advance money for anyone. If they are legit, they will usually understand your situation and agree. Once you have established a trusting relationship with them, you may consider advancing some money in case a situation calls for it but only do so for an amount you can afford to lose.
3. There could be other variations of scams like these preying on remote work freelancers who are easy victims. Look out for such companies that also get too much personally identifiable information that could let them gain access to your money or steal your identity.

For more details on the actual scam, tips for U.S.-based freelances, and the screenshots provided by the victim to Wordfence, click HERE.