Have you worked with a fraudulent client?

[#1]

Hello all, 

Have you ever had something like this happen to you on UpWork?

I recently completed a job for $550. After the contract ended, I was contacted by UpWork support who let me know that my employer had a fraudulent account. The funds were reversed and I made $0 despite all of my hard work. Naturally, I was very confused by this. The client's profile clearly stated that his payment method was verified, but this couldn't be further from the truth. UpWork's responsibility is to connect freelancers with clients, and then protect both parties. How could UpWork verify the client's payment method only to tell me later that this was fraudulent?

Obviously, these things happen. But when I asked UpWork if there was anything they could do, they responded:  **Edited for Community Guidelines** I suggested that UpWork pays me $550 to make up for my losses, but they declined. They simply folded their hands and said there is nothing they could do.

UpWork is a huge company. There is definitely something they could do. For example, they could have said "Sorry for the inconvenience. We won't take our percentage out of your next few contracts until the $550 is paid back."  Instead, they did nothing.

Has something similar ever happened to you? I already spoke to a lawyer about this. She made it very clear that if I have been treated like this by UpWork, there are many others who have as well. 

[#2]

Hey Robert, 

I appreciate the thoughts. In response to your second paragraph, UpWork absolutely should require clients to produce identification to make sure they're the owners of their payment method. That's what "payment method verified" means. Yes, this might slow down the process, but that's what it takes to ensure the security of everybody on this website.

After reading the responses, I am clearly not the first person this has happened to nor will I be the last unless UpWork makes some significant changes to their vetting process. 

[#3]

It happens over and over again, and it's always a bitter surprise because Upwork doesn't acknowledge these potential pitfalls, doesn't make any effort to explain the limits or reasons for their failure/inability to contain client-committed fraud, and doesn't bother to educate freelancers on ways to protect themselves, such as the simple act of copyrighting your work, to be released upon real funds being paid to Upwork.

In short, Upwork doesn't do much to protect freelancers, or to help us protect ourselves. Why would it be so hard to produce a frank video and require that each new freelancer watch it and acknowledge it key points? They just don't seem to care, beyond slogans and smiling executive messages. 

[#4]

Sorry to hear about your experience, Anthony.

Upwork is careful to present itself as a platform that serves as an independent, arm's length conduit for clients and freelancers to transact business, promising neither the quality of work from the freelancer nor payment by the client (though, as mentioned here by others, there is more payment protection by Upwork for hourly projects than for fixed price projects).

One way this sort of fraud could be reduced, if not avoided, would be for Upwork to require clients to fund escrow with wire transfers or other means that ensure Upwork has what bankers call "good funds" before the freelancer begins work, but that is not a perfect solution. The primary objection is probably that many honest clients new to Upwork would not be willing to pay upfront by means other than a credit card.

Upwork providing more information about clients and their history (or lack thereof) on the platform might also be useful to freelancers in respect to vetting clients, but that is not on the cards, more than likely. 

I have worked on about 350 projects on Upwork and have rarely run into dishonest clients. I expect you'll find the same if you stick around, but there really is little in the way of payment protection on fixed price projects.

Good luck!

[#5]

Thank you for the response, Will.

The truth is that I do love working on UpWork, but it's incredibly disappointing that the site does not protect me when instances of fraud occur. It is their responsibility to vet their clients before they allow them to join the marketplace. Security is supposed to be one of the benefits of working on UpWork. That's why I don't mind that they take a huge percentage of every paycheck that I earn. However, it is very apparent from my experience and others' that security is not as big of a priority as they claim it to be.

[#6]

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Anthony T wrote:

Thank you for the response, Will.

The truth is that I do love working on UpWork, but it's incredibly disappointing that the site does not protect me when instances of fraud occur. It is their responsibility to vet their clients before they allow them to join the marketplace. Security is supposed to be one of the benefits of working on UpWork. That's why I don't mind that they take a huge percentage of every paycheck that I earn. However, it is very apparent from my experience and others' that security is not as big of a priority as they claim it to be.

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It's not though. They don't promise that. Show me in their marketing where it says they vet all the clients you don't have to? Again, you are thinking Upwork does things that it does not, and so you are operating out of a false premise. If you can understand that Upwork has no intention of vetting clients, you can begin to learn how to set up your own vetting processes and questions within your interview process before you take on clients, which is far better protection than anything Upwork does.

[#7]

Sorry to hear about your problem. It seems to happen continuously on Upwork, and their policy is essentially "too bad." All of Upwork's representations of supporting freelancers are riddled with loopholes and excuses. "Payment verification " and "Payment protection" are really nothing more than slogans.

[#8]

Sorry to hear about your problem. It seems to happen continuously on Upwork, and their policy is essentially "too bad." All of Upwork's representations of supporting freelancers are riddled with loopholes and excuses that are buried in the Terms of Service. "Payment verification " and "Payment protection" are really nothing more than slogans.