How to Avoid Side Hustle Scams: What You Need to Know

As the demand for flexible work increases, many people, especially young adults, are turning to side hustles for extra income. While these opportunities can be beneficial, scammers also exploit them to target unsuspecting individuals. Here’s how a common side hustle scam works and what you can do to protect yourself.

The Scam

• Easy Money with a Catch
  Imagine you come across an online ad promising $3,000 for a simple task. It seems like a no-brainer, who wouldn’t want to earn easy money for minimal effort? Fraudsters know that large sums of money attract attention, but the reality is far different from what they promise.
  
  Tip: If an offer seems too good to be true, it probably is. Scammers often bait victims with promises of high pay for easy tasks. Always be skeptical of unusually high payouts for little work.
  
  
• The Fake Check Trap
  Once you express interest in the job, the scammer will send you a check for the promised $3,000. For example, they’ll instruct you to deposit the check, keep $500 for yourself, and wire the remaining $2,500 to a third party. This might sound straightforward, but it’s a classic scam technique.
  
  What’s really happening? The check is counterfeit, but when you deposit it, your bank might initially credit your account for the full amount. You’ll send $2,500 to the scammer, only to find out days later that the check has bounced. At this point, the bank will reverse the deposit, leaving you responsible for the $2,500 you wired.
  
  Tip: Never wire money to someone you don’t know. Scammers frequently ask for wire transfers or payments through untraceable methods, making it nearly impossible to recover your funds. Also remember, to never let anyone use your account, even family members. If it's in your account, you are responsible for it.

The Consequences

• When the check bounces, you’re left with the financial burden. You lose the $2,500 you wired, and the bank holds you responsible for covering the loss. Unfortunately, many people don’t realize the check is fake, stolen, or otherwise invalid until it’s too late, leading to significant financial and emotional stress.
  
  Tip: Be cautious with checks from unknown sources. Even if your bank credits the money temporarily, the check may still bounce and you could be held liable for funds that you have spent or sent. Verify the legitimacy of the check with the bank before taking any action.

How to Protect Yourself

Here are some tips to stay safe from side hustle scams:

1. Do Your Research
   Before accepting any side hustle, research the company or individual offering the job. Look for reviews, testimonials, or news articles to ensure it’s legitimate.
2. Be Cautious of High-Paying, Low-Effort Offers
   Offers that promise a lot of money for very little work are often scams. If the pay seems disproportionate to the task, be wary.
3. Never Wire Money to Someone You Don’t Know
   Scammers often ask victims to wire money or send funds through payment apps, which are hard to recover. Payments for work or items should always match what is due—never forward part of a payment to someone else. It’s easy to issue two separate payments. 
4. Verify Checks Before Depositing Them
   If you receive a check unexpectedly or from an unknown source, contact the issuing bank to verify its authenticity. Don’t assume a check is valid just because your account temporarily reflects the deposit. It is wise to wait weeks before spending funds if you have any doubts. 
5. Trust Your Instincts
   If something feels off or seems too easy, it’s likely a scam. Trust your gut, and don’t rush into any financial transactions without fully understanding them.