Is Upwork Legit and How To Protect Yourself?

Doing business online has become simpler with the development of the Internet and mobile technologies. In general, both freelancers and clients benefit from the freelancing platforms. Freelancers have benefited from the freedom to choose their own hours and maintain creative control, the capacity to serve various clients. The clients can scale the work from project to project, develop round-the-clock contact, and hire freelancers at a reasonable price.

Websites like Upwork, Fiverr, and Freelancer are some of the most well-known platforms that connect potential clients with a global pool of independent contractors.  

However, users of these freelancing platforms, including businesses, have become exposed to various scams committed by both clients and freelancers, including digital marketing scams, phishing attacks, etc.

Is Upwork Legit?

Upwork is a completely legitimate platform for remote freelance work, and several factors prove its credibility. Formerly known as Elance-oDesk in its earliest years, Upwork rebranded in 2015 and is, as of today, one of the biggest freelance marketplaces on the web.

Upwork statistics from 2024 say that it boasts around 18 million registered freelancers and 5 million registered clients in around 180 countries. There are around 50 million active users each month on Upwork. Upwork’s annual revenue is around $700 million (fees paid by the clients and the freelancers). 

Common Types of Upwork Scams

Still, there are multiple scams freelancers might encounter online, and here we will elaborate on the most common Upwork scams.

Payment scams

Although the client can be payment-verified, there is no guarantee that you will be paid for your work. Scammers exploit payment systems effectively, so the payment might never arrive even when the work is delivered.

A typical scam is when the client funds the work by uploading the amount and in the meantime, empties the card to nil. You see the amount all the time, but after delivering the work, you’ll get the message “funds were refunded to the client” due to the client’s insufficient payment means”. In this case, the Upwork support will not resolve the case. Typically – the client leaves the platform and can return with a new identity.

Fake Job Postings

From time to time, there are fake jobs posted on Upwork that aim to drag you out of the platform and force you to work for a suspicious client. Titles like “Marketing specialist urgently needed”, “Payment up to $5000 per week”, and “No experience needed, we provide all the training” should warn you not to get caught. Upwork has already established its team that tries to identify and remove these job listings, but you should stay cautious at all times.

Phishing Attempts

Another threat that is rising is phishing scams, i.e., attempts to steal personal information or login credentials through fake links or communications. When someone pretends to be an employer or a trusted service to steal from you, it’s called phishing. You may receive false emails with company logos, fake login pages, and fraudulent personal messages and calls which are phishing attempts. You must ensure who is communicating with you.

Identity Theft

Scammers might use stolen identities or attempt to steal a freelancer's identity for fraudulent purposes.To prevent identity theft, you should never share your personal information with suspicious subjects online. Upwork is performing ID verification for freelancers, but little is done to check the background of the employers.

Techniques Used by Scammers on Upwork

Here we expose the techniques and strategies scammers use to deceive freelancers on Upwork:

• Fake profiles – creating several Employer profiles on Upwork with different identities to hire multiple freelancers without paying for the job done.
• Payment schemes – the employer may fund the contract, then deduct the money from his card and close the profile upon job completion. Also, requesting that the work be taken out of Upwork and paid via third channels is a warning sign to cancel the job and report the case to the Upwork support team.
• Deceptive communication – the scammer can ask the freelancer to buy or pay for something on his behalf, as he funds the current project with a “Pending balance”. You make the payment and the next day – the pending balance is refunded to the employer and he disappears.

How To Spot an Upwork Scam?

To avoid falling victim it is important to be able to identify scams early. Here we describe the possible signs freelancers should be aware of.

Signs of a Fake Job Posting

There are several common signs of a fake job posting:

• Unrealistic Pay Rates: Extremely high or low pay offers should raise your suspicion. As mentioned above – a payment of $5000 per week for a simple task that doesn’t require skills is not reasonable – it is a scam.
• Lack of Job Details: Vague or poorly defined job descriptions are often a red flag. Example job descriptions include: content writer needed for a simple writing job, marketing specialist needed, or remote office assistant without specifying the tasks required. Also, listings with spelling or grammar should trigger an alert for you.
• Suspicious Client Profiles: Signs of fake employer profiles are - incomplete profile, lack of reviews, or newly created accounts. Even by engaging with trusted profiles – you should stay careful throughout the entire contract.

Warning Signs in Communication

There are clear warning signs in communication that can alert you to be cautious:

• Requests for Personal Information: Legitimate clients should never ask for sensitive data. You have a complete profile on Upwork, and anything like your Social Security number or bank account number is a clear sign of a scam.  
• Pressure to Move Off-Platform: Scammers often try to move communication or payment off Upwork. You should always stick to Upwork’s payment system, as it provides basic hourly work protection. Also – you can ask for help from the Upwork support team.
• Unprofessional Language or Behavior: Overly casual or unprofessional interactions can be a sign of a scam. Trying to contact you via Skype or WhatsApp is also a warning sign.

How to Protect Yourself from Upwork Scams?

Now we will give you practical advice on how you can protect yourself from Upwork scams:

Thorough Research

Before accepting a job – you should conduct thorough research on the client’s background. It is important to check the client reviews, profile details, and past work history before accepting the work. Seeing that the client has allocated many jobs to freelancers and spent a large amount of money on Upwork projects is a good sign for you to accept the job. If possible, ask for the name of the company the client is representing and browse for its status and reputation (whether it is active, the number of employees, etc.).

Secure Communication

To ensure protection and documentation – it is necessary to keep all communication and transactions within the Upwork platform. Even Upwork declares that if communication is done outside the platform (e.g. email, Skype, WhatsApp, etc.), they don’t provide protection and won’t guarantee that you will be paid for your work.

Payment Security

Upwork’s payment protection features system called Escrow to safeguard earnings. The client is requested to upload the money for the work at the start of the contract, and the platform keeps the funds until the work is delivered. Then, the money is transferred (with the client’s approval) to the freelancer’s account. For hourly-based contracts, the escrow works perfectly (there is complete protection). For milestone-based contracts (bulk price), there can be some flaws since the client can manipulate and withdraw the money from escrow without Upwork’s notification.

Report Suspicious Activity

In case you notice suspicious job postings, clients, or any scam-related activity on Upwork – you should report it to the Upwork support team. In the message clearly describe the issue and ask for help. The support team usually responds within 24 hours, and if necessary –further messages can follow with questions and answers.

Steps to Take If You've Been Scammed

Despite best efforts, scams can happen, and here we outline the immediate steps to take if you fall victim.

Immediate Actions

If you encounter an Upwork scam, the first step is to stop working for the scammer client. You should document your communication and contact the Upwork support team immediately, describing the problem. They will respond within 24 hours, and further questions from their side may follow.

Recovering Lost Payments

If your account is hourly-based and the client has uploaded the funds to escrow, the possibility of getting paid for your work is high. In case the contract is lump-sum and the client removes the amount  - you can try to ask for the funds through Upwork’s dispute resolution process.

Protecting Your Account

Aside from client scams – there can also be hacker scams that try to break into your Upwork login and password to steal your money. For this purpose – you must secure your account. A strong password typically includes a mix of uppercase and lowercase letters, numbers, and special characters. It should be long enough, ideally more than 10 characters. To prevent future incidents – it is advisable to update your password periodically.

To avoid Upwork scams, you should follow all advice listed above. Avoid working for clients outside of Upwork since you may face not getting paid for your work. In case some party engages in malicious activity, Upwork offers both employers and independent contractors basic security and protection.

Accept a reasonable payment plan for your service that works for both you and your employer. The best alternative is the milestone-based payment plan, in which you get paid for each successfully completed stage of the project. You, as a freelancer, should always stay vigilant, use Upwork’s security features, and report any suspicious activity