I Got Scammed on Upwork So You Don’t Have To.

Last November, I was recovering from the impact of the sudden disintegration of my two most recent employers, one after the other. Although my self-respect prevented me from returning to abusive jobs, the situation was becoming increasingly desperate. It was then that I remembered a potential salvation mentioned by a writer friend: Upwork, a freelance platform that changed its name from "Elance-oDesk" in 2015, with the slogan "This is how we work now." During a conversation a year ago, my friend shared his surprising success on Upwork, where he landed well-paid and entertaining gigs as a ghostwriter for wedding speeches and witty comments in wine mom groups. His profile showed that he had worked just 85 hours, but had already earned over $10,000. He encouraged me to join, assuring me that with some initial jobs and good reviews, I could establish a "Job Success Score" that would increase my visibility to employers.

So, after that conversation, I created an account on Upwork and started exploring it. However, knowing the downsides of the gig economy and its inherently exploitative business model, I didn't want to be deceived. A year went by before I felt the pressure to look for work again. While all gig work has its downsides, at least I could participate from home, or so I told myself to motivate me. However, I had forgotten the warning my friend had given me: "But seriously, be careful of scammers out there."

Upwork operates through a bidding system. Clients post ads describing temporary jobs along with a budget that is paid hourly or as a lump sum once tasks are completed. Applicants submit their hourly rate or a flat fee and wait to be selected. Upwork allows those with few "Connect" credits to buy more at the rate of $0.15 each. While this may seem like an insignificant cost, it can be quite profitable for the platform.

One of the major differences between Upwork and other job boards lies in its fee structure. Upwork charges a standard "service" fee of 10% on all payments to freelancers, in addition to a startup cost of $4.95 for each new job. In other words, if a freelancer is hired for a job worth $1,000, the client ends up paying $1,054.95. They must reserve $1,000 in an escrow account, and in the end, the freelancer only receives $900 (or $880) after Upwork's commission, meaning $154.95 remains with the platform.

As for the Connect credits, they are a kind of premium currency that applicants must spend to apply for jobs. All new freelancers receive 50 credits upon registration and get 10 credits each month. Some job applications may cost between two and four credits, while today, some exceed 16. Upwork also encourages freelancers to top up their credits for $0.15 each, turning this system into a revenue source for the company.

Although I had created my Upwork profile a year earlier, I felt that I had accumulated a good number of credits while not using it. However, day by day, my account began to drain after applying for several jobs. Finally, on November 29, I received a response to one of my applications. It was from someone named Khuram D., who was looking for a "creative writer for a short story." He promised to provide all the necessary information for the project.

After reviewing his profile, I believed the client was legitimate. The company "KD," linked to his profile, had paid over $14,000 to more than 200 freelancers since 2015, and he had a rating of 4.73 out of 5. However, my confidence was shaken when Khuram began to ask for writing samples and exhibited strange behavior by alternating between “I” and “we” in his messages. Although he flattered me about my writing, my instincts began to raise alarms.

After agreeing on an initial deposit amount for the work, my intuition told me to be cautious. Although he had deposited $5 in the escrow account, I made sure to confirm the terms of our agreement in writing. When I finally delivered the work on December 12, communication stopped. I spent days searching for information about a lawyer named "James Specter," the character I had written for. My investigations led to the discouraging conclusion that Khuram had ignored me.

Determined to seek justice, I contacted Upwork hoping they would recognize the fraud. However, their response was surprisingly indifferent. Although they confirmed that I had received "misleading information," they took no responsibility for recovering the money that Khuram owed. I already felt that the platform was more interested in its profits than in protecting its users.

During my inquiries, I came into contact with other freelancers who had also been scammed on Upwork. Most agreed that the platform not only failed to protect them but seemed to have normalized scams as part of the risks of freelance work. This perception intensified as I noticed the growing outsourcing of scams on the site. Experts have pointed out that Upwork's business model could conflict with its reputation as a safe place to work.

All of this led me to conclude that Khuram was not the only culprit. The ecosystem that allows his existence should be examined more closely. As I delved into this odyssey and sought information about Upwork, I discovered concerned investors and users who questioned the future of the platform and the lack of adequate measures to curb scammers.

In the end, my experience turned into a deeper analysis of the system that allows scammers like Khuram to proliferate. The situation is a clear indicator of the inherent risks in the gig economy and the urgent need to establish more effective safeguards for freelancers.