How to avoid side hustle scams
Scammers have been targeting Australians seeking additional income through online side hustles.
With the cost of living climbing over the past year, many Australians are exploring additional income sources to cope with rising expenses, including side hustling.
Last year, the Australian Bureau of Statistics trumpeted that almost 1 million (955,600) Australians held multiple jobs, constituting 6.6% of the employed population. Interestingly, workers aged 20-24 were most likely to work multiple jobs, with a rate of 7.9%.
Regrettably, upon hearing the trumpet blast, the scammers redirected their deceptive efforts towards Australians seeking additional income through online side hustles, according to the ACCC’s Scamwatch website.
Unsurprisingly, reports to Scamwatch show that these scams are disproportionally targeting younger Australians aged 18-44 years old, including students looking for part-time work. People from culturally and linguistically diverse backgrounds, including non-resident visa holders, are also particularly at risk.
Online scammers exploit job seekers with false promises of guaranteed income
The fraudsters are focusing on individuals seeking online part-time work. They promise them guaranteed income from jobs that include boosting the ratings of products and services through an online platform. Sometimes, the jobs are as simple as liking posts on social media such as TikTok videos.
The victims often respond to an advertisement on social media about a job opportunity. The swindler will contact the victim directly via encrypted messaging apps like WhatsApp.
The scam operates like an online game, with victims reporting that they are pressured to make an initial investment using their own money and ongoing payments to ‘level up’ and receive a higher income, which they never receive.
Safeguarding against side-hustle scams
Never click on links in texts or encrypted messages to sidestep falling victim to a side hustle scam. Likewise, avoid providing money or personal information if you feel uncertain about the ‘job offer’.
Scammers often create a false sense of urgency, such as claiming an upfront payment is required to secure a job. Take your time, and don’t rush into any actions.
Additionally, question the authenticity of the request. Legitimate employers typically don’t request payments.
Scammers may impersonate well-known organisations, so independently verify the request by contacting the company or recruiter directly using the contact information you’ve personally obtained to ensure the message is legitimate.
Five tips for spotting a side-hustle scam
Scammers may impersonate well-known organisations, so independently verify the request by contacting the company or recruiter directly using the contact information you’ve personally obtained to ensure the message is legitimate.
Five tips for spotting a side-hustle scam
1. If you receive a social media ad pitched as a side hustle or second job promising attractive pay rates or a guaranteed income for promoting products on a website, with mentions of flexible hours and the option to work from home, steer clear.
2. You’ll be directed to an encrypted messaging app like WhatsApp to gather more information about the advertised job opportunity.
3. Before you can participate, an initial payment must be made, followed by ongoing requests for money to unlock higher income levels.
4. Usually, the recruiter assures no prior experience is necessary, offering complete training and stating minimal paperwork requirements.
5. Poor design and typos make the website look different to the known brand. Also, it probably won’t be listed as “.com.au” or “.com” even though it looks similar to an Australian store.
If something feels amiss, act quickly. Contact Community First Bank immediately on 1300 13 22 77 if you’ve lost money and report the scam to Scamwatch www.scamwatch.gov.au for further assistance.
Community First Credit Union LimitedABN 80 087 649 938 | Operating as Community First Bank | AFSL and Australian credit licence 231204| BSB 512-170