18/08/2023
A new kind of scam is currently targeting Upwork and Fiverr.
Call center agents, mainly from India and Pakistan, have access to banking and card details of their customers. Due to restrictions and 3D authentication, they cannot use the cards for importing goods, withdrawals, or charges. However, platforms like Upwork and Fiverr use 2D authentication, so they use the cards for tasks like content writing and web design.
Fiverr ID, email ID, bank details, and VPN are matched with the client. Clients have a Fiverr ID, but they may not know it's being registered with a new or fake Gmail under their name.
After a while, when the client notices an unknown charge on their statement, they file a complaint with their bank. They can't see what's happening on Upwork or Fiverr because they don't have access to their Gmail. The bank refunds the money as credit card money is insured. Fiverr and Upwork can only ban the seller, but it's usually a scammer. The scammer can create a new account with the next customer's details and continue getting work for free.
Ultimately, freelancers suffer, as Upwork might think the seller is involved in getting money from the card.
Here are some ways sellers can protect themselves:
Avoid working with new clients who offer unusually high payments for minimal work. For instance, if the standard price for a logo is $10-20, and someone offers $80-100, it might be a red flag.
Be on the lookout for grammar and language errors that don't match the client's name. For example, if the person's name is James White but they write in a Pakistani tone.
Check the client's job history and completed projects. If they have orders from the past 3-4 months, they might be a legitimate client. But if there are 5-6 contracts in one month and nothing before, it could be a scammer. The real person whose card is hacked might still be unaware or in the process of complaining to the bank.
Communication Verification: If a client is paying more than usual for a small project, ask for a video call or voice chat to verify their identity. Scammers often avoid direct communication.
Research the client: If a client is new on the platform, ask about their business or what they do. Search for their name online to check for a legitimate presence or business. LinkedIn profiles, social media, and other professional websites can provide insights into their authenticity.
In conclusion, freelancers using platforms like Upwork and Fiverr need to stay alert to a new scam involving scammers using stolen card details to complete tasks. By being cautious with new clients, watching for language mistakes, and reviewing a client's job history, freelancers can work smarter and safer, avoiding the pitfalls of this type of scam.
