App-Based Gig Workers Guide to avoiding Frauds and Scams

Gig work accounts for hundreds of billions of dollars in economic activity each year, according to the Federal Trade Commission (FTC). With that kind of cash flow, it’s no wonder we’re seeing increasing cases of scams and fraud hitting the gig economy.

The FTC also reported that more than half of gig workers say the money they earn is essential for making ends meet. So how do you protect your hard-earned cash as an independent contractor in the gig economy? 

Here’s a quick guide to avoiding the most common scams and frauds as a gig worker: 

Understand when & how scammer likes to work  

Scammers often:

1. Choose a time when you’re busy. A common scam targeting app-based gig workers occurs when the fraudster knows you’re busy with an order—because the scammer has made the order as a way to get in touch with you. They know when you are busy, you’re more likely to accept what you’re told without taking the time to think about the situation. 

2. Pose as a trusted source, such as pretending to be from the gig company’s support department. According to a Marketwatch report, there were “nearly 300 records of complaints to the FTC in the past three years by Uber, DoorDash, Instacart and Grubhub workers around the nation who said they lost their earnings — or in some cases everything in their bank accounts — because they turned over personal information to people whom they thought were support representatives.”

3. Play into fears and make threats. Scammers are practiced manipulators who will use fear to get you to make a quick and harmful decision. The ultimate threat for a gig worker is to be “Deactivated” from the app service, essentially fired. However, even the fear of a cancelled order may cause a gig worker to ignore red flags.    

What should gig workers do to protect themselves from scammers?

1. Stay informed. Read communications from your company, look for info on recent scams, and know how to contact the company officially. Search reliable news organizations for articles on the latest scams. Speak with other app-based gig workers about what issues they have encountered.
2. Communicate with your employer through established channels. Only use the app or the official contact info posted on the companies’ websites or in your contract for employment. Do not click on links within texts or emails, as scammers can spoof phone numbers, emails, and websites.
3. Refuse to be rushed, and don’t let fear persuade you to ignore red flags. Even if you’re busy with an order or delivery, take time to review the situation. Don’t provide personal or account information that can be used to access and control your account, and don’t access your account using public (i.e. unsecured) WIFI—fraudulent transfers can happen in an instant.  

Finally, keep a close watch on your accounts and earnings. You want all your hard-earned money, to stay right where it belongs—with you.