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nick_aso5
Community Member

Client's fraudulent activity with Projects

A client with an approved payment method and good reviews purchased my project and i have done job for him. 

After some time Upwork sent me this: We have reviewed this contract and found that it is not eligible for Upwork Payment Protection at this time. Unfortunately, fixed-price protection is not available when the client is removed from the marketplace for fraud.

And they just get my earned money back! I didn't get any detailed explanation, they just told me that they found compelling evidence of fraudulent activity by the client. Can you imagine? Upwork has no right to do this! They declare that they provide Upwork Payment Protection but actually they don't do this. 

 

Does anyone face such issues when your client was deleted due to fraud and Upwork took his payment back from your account?

 

"dear" upwork team:

  1. You encourage me to create projects in Upwork with fixed based job.
  2. You show my project to various clients. You verify your client's payments and data. Right?
  3. A client purchases my project and you set his payment on hold.Right?
  4. A Client approves my job and i pay 20% to you and get the rest to my account. You got your fees and both of us executed our mutual obligations. Indeed?
  5. After that you inform that it was fraud client and You take all money back because YOU failed to execute all your obligations from the steps 2-4. I am not responsible for fraud activity by any client coz even I don’t choose clients on prepaid projects. 
13 REPLIES 13
a_lipsey
Community Member

Was the project to purchase reviews from you for the app store?

No, It was App Store Optimization project

Well, unfortunately in instances of fraud the credit card company claws back the funds through a chargeback, and Upwork has no control over it. Just like you, Upwork is the victim of a fraud here. They took the money back out of your account because it was taken back from them, so there is no money. Upwork's payment protection is limited and if you read the TOS and about payment protection, you will see that they say so. 

 

I'm sorry this happened to you because it does suck, but this is one of the risks of doing business online. 

 

You do have choice when accepting projects. You have the ability to cancel projects within 24 hours with no penalty. So no, you did have the choice to accept this project or not AND you have the choice to participate in project catalog or not. 

 

You can do a number of things: you can stop doing project catalog since the payment protection on fixed price contracts is so limited. You can stop using Upwork because payment protection in general is limited. You can educate yourself on the limitations of payment protection and proceed with caution. Or you can ignore everything and throw caution to the wind. 

 

I would educate myself on the boundaries and limitations of payment protection and learn how to operate within those limits so that I can avoid as much risk as possible. And I would also know that sometimes bad shtuff happens, it's no one's fault, and it's just a loss. 

Nice try Upwork team but I disagree. Upwork failed to detect a fraud since the beginning and it resulted in my loss of time & money. Upwork should pay from their wallet coz the reason i work here coz they "protect" my earnings. 


Nikita S wrote:

Nice try Upwork team but I disagree. Upwork failed to detect a fraud since the beginning and it resulted in my loss of time & money. Upwork should pay from their wallet coz the reason i work here coz they "protect" my earnings. 



Nikita S wrote:

Nice try Upwork team but I disagree. Upwork failed to detect a fraud since the beginning and it resulted in my loss of time & money. Upwork should pay from their wallet coz the reason i work here coz they "protect" my earnings. 


No, they don't. You need to read the TOS because that's not what they do. 

Amanda, when you sell any goods in supermarket and some of your goods were stolen by customers, you still will get money from supermarket for these products and now it's supermarket's problem to deal with stealers. The same story should be within Upwork Marketplace. You say about protection but you don't protect. 


Nikita S wrote:

Amanda, when you sell any goods in supermarket and some of your goods were stolen by customers, you still will get money from supermarket for these products and now it's supermarket's problem to deal with stealers. The same story should be within Upwork Marketplace. You say about protection but you don't protect. 


First, I don't work for Upwork. I'm a community member, just like you. Second, this is from the TOS regarding fixed-price contracts: 

 

4.5 VIOLATION OF UPWORK TERMS OF SERVICE OR LAW
Freelancer and Client acknowledge and agree that if, in Upwork Escrow’s sole discretion, Upwork Escrow believes that fraud, illegal activity, or a violation of the Terms of Service has been committed or is being committed or attempted, then Client and Freelancer irrevocably authorize and instruct Upwork Escrow to take such actions as deemed appropriate, in Upwork Escrow’s sole discretion and in accordance with applicable law, in order to prevent or remedy such acts, including without limitation, to return the funds associated with such acts to their source of payment, as further described in Section 6.3 of the User Agreement. This Section 4.5 allows Upwork Escrow—as permitted by law but otherwise in its sole discretion—to return funds to Client’s Payment Method, continue to hold funds in Escrow, release funds to the Freelancer Escrow Account, or to turn funds over to third parties such as law enforcement.
 

And here is the link to the whole section: https://www.upwork.com/legal#fp

You can continue to argue for how you want it to work, or you can realize how it actually works and the TOS you agreed to and learn to work within that. 

in that case i remove all my projects from Upwork marketplace and move them to Fiverr.

It may be that any client can purchase a project and after the finished job he can withdraw payment back. I have no desire to work in such way without any guarantee that i will be paid. 

 

I accepted a client's job coz his payment method was verified. It seems that you do not verify properly. I can not trust you here anymore.

I recommend you fully read Fivers TOS before doing so. You're going to find the same thing. 

petra_r
Community Member


Amanda L wrote:

Was the project to purchase reviews from you for the app store?


Surely not, considering that such a project would violate Upwork's terms of service and should never be approved in the first place...

AveryO
Community Manager
Community Manager

Hi Nikita, 


I'm sorry to learn about your experience with this contract. I can see that your concern has are already been escalated, and you are continuously being assisted by the team through your open support ticket. If you have further questions regarding your concern, please don't hesitate to update the same ticket thread so that the team handling your case can assist you. On my end, I have shared your post with the team for their reference.


~ Avery
Upwork
nick_aso5
Community Member

in that case i remove all my projects from Upwork marketplace and move them to Fiverr.

It may be that any client can purchase a project and after the finished job he can withdraw payment back. I have no desire to work in such way without any guarantee that i will be paid. 

I accepted a client's job coz his payment method was verified. It seems that you do not verify properly. I can not trust you here anymore.

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