Online side hustle scams are on the rise, costing Americans millions of dollars every year. Knowing the warning signs can protect your money, time, and personal information. Here are the 10 key red flags to watch out for:
- Unsolicited Job Offers with Unrealistic Pay: If a job offer comes out of nowhere with promises of high pay for minimal work, it’s likely a scam.
- Requests for Upfront Payments or Fees: Legitimate employers never ask you to pay for a job, training, or equipment.
- Vague Job Descriptions: Scammers avoid specifics to attract more victims. Look for detailed and clear job postings.
- Communication Only Through Messaging Apps: Professional employers use official channels, not informal apps like WhatsApp or Telegram.
- Pressure to Share Personal Information Quickly: Scammers create urgency to trick you into revealing sensitive details.
- Overpayment or Fake Payment Scams: Be cautious of checks that overpay and requests for refunds - they’re often fake.
- Poor or Missing Online Presence: A legitimate company will have a professional website, verified contact details, and active social media profiles.
- Poor Grammar and Inconsistent Branding: Spelling errors, odd logos, and mismatched visuals are major red flags.
- Package Forwarding or Reshipping Requests: These scams may involve stolen goods and can lead to serious legal trouble.
- Payment Through Cryptocurrency or Gift Cards: Legitimate employers won’t ask for untraceable payment methods.
Stay Safe: Always research the company, verify job postings, and avoid offers that seem too good to be true. If you suspect a scam, report it to the FTC at ReportFraud.ftc.gov.
BBB Warns of Side Hustle Scams
1. Unsolicited Job Offers with Unrealistic Pay Claims
Receiving a job offer out of the blue? That’s often a red flag. According to the Better Business Bureau, a staggering 80% of job scam victims reported that scammers were the ones who initiated contact. These offers usually show up in your inbox, as text messages, or even through social media, targeting individuals who never applied for the job in the first place. This unsolicited outreach is a hallmark of many online side hustle scams.
One of the most common tactics scammers use is inflating pay rates to grab your attention. Think offers like $50 an hour for basic data entry, $5,000 a week for routine tasks, or promises of earning "thousands in your first month." These numbers are designed to sound too good to pass up - and that’s exactly the point.
Young professionals and early-career job seekers are particularly vulnerable to these schemes. Scammers often dangle senior-level salaries for entry-level roles, creating an obvious mismatch between the experience required and the pay being offered.
To stay safe, always cross-check salary claims using reliable platforms like Indeed, Glassdoor, or PayScale. If the pay is way above industry standards and there’s no clear explanation, it’s likely a scam.
In 2024 alone, Americans lost over $750 million to job scams, with the average victim losing $2,250. If an offer seems too good to be true, it probably is. Legitimate employers stick to structured hiring practices, offer realistic pay ranges, and communicate transparently. Don’t let flashy promises cloud your judgment.
2. Requests for Upfront Payments or Fees
If you're exploring online side hustles, here's a key rule to remember: you should never have to pay to start earning. Any request for upfront fees is a major warning sign that you might be dealing with a scam.
The Federal Trade Commission (FTC) makes this crystal clear: "Legitimate employers will never ask job seekers to pay for a job or for equipment needed to perform the job". Genuine employers provide the tools and training you need without charging you a dime.
Scammers, on the other hand, often disguise their schemes as legitimate by asking for fees under the guise of background checks, training, or equipment. These tactics are designed to drain your wallet before the scammer vanishes. In fact, data from 2023 reveals that scams involving upfront fees have cost victims millions of dollars. Common examples include fake job offers, bogus lottery winnings, fraudulent loan deals, and shady investment opportunities - all of which demand payments upfront.
The Texas Attorney General's Office breaks down the psychology behind such scams: "A cash advance scam - aka, an advance fee scam - asks for money upfront in order to get a loan or receive some other benefit". The promise of future rewards might make the upfront cost seem appealing, but it's nothing more than a trap.
To safeguard yourself, always do your homework before handing over money. Research the company thoroughly - visit their official website, read reviews, and check for complaints with the Better Business Bureau. If you receive a suspicious job offer asking for upfront fees, reach out to the company directly using verified contact details.
For peace of mind, platforms like e-SideHustles (https://esidehustles.com) carefully vet opportunities to help you steer clear of these scams.
3. Vague or Generic Job Descriptions
When exploring side hustle opportunities online, take a close look at how detailed the job descriptions are. Scammers often keep their postings vague on purpose, hoping to attract a wide range of unsuspecting victims.
Melanie McGovern from the Better Business Bureau explains, "Fake recruiter profiles tend to be incomplete with vague job listings and descriptions". These scammers often use generic job titles like "remote worker" or "manager", avoiding specifics about the role or the company.
In contrast, legitimate job postings usually include clear details about the responsibilities, required skills, and expectations. This helps them attract qualified candidates. Scammers, on the other hand, avoid providing such information to escape scrutiny, hoping job seekers will overlook the lack of clarity.
Watch out for listings that only mention basic criteria like age or minimal skills. Even entry-level roles typically outline specific requirements. For instance, a genuine data entry job will detail software knowledge, typing speed expectations, and accuracy standards. Without these specifics, it’s a red flag.
Scammers often rely on vague language to draw you in, initiating contact in 80% of reported scams. They may promise to provide more details later, but those details rarely materialize.
Avoid opportunities that fail to clearly define your responsibilities. Instead, prioritize listings that outline daily tasks, reporting structures, performance expectations, and qualifications. Legitimate employers want to ensure you're the right fit and will provide this information upfront.
To protect yourself, verify job postings by visiting the company’s official website or contacting them through verified channels. Don’t hesitate to ask specific questions about the role and hiring process. Reputable employers will appreciate your diligence and provide clear, detailed answers.
If you're looking for trustworthy opportunities with transparent descriptions, platforms like e-SideHustles can connect you with legitimate side hustles. Up next, let’s examine how scammers manipulate communication methods to avoid detection.
4. Communication Only Through Messaging Apps
If a potential employer insists on using messaging apps like WhatsApp or Telegram as the sole method of communication, it’s a major warning sign. Legitimate companies typically rely on official channels - such as company email addresses or established hiring platforms - for professional correspondence. Scammers, on the other hand, prefer informal apps to avoid verification and make their schemes harder to trace.
Messaging apps provide a layer of anonymity that scammers exploit to their advantage. In the first half of 2024, there were 20,000 reported task scams, many of which began through messaging app communication.
"Conducting an interview over text only is a clear red flag for the legitimacy of the job."
Authentic hiring processes usually involve phone calls, video interviews, or in-person meetings. If the entire recruitment process is limited to text messages, it’s a strong indicator of a scam.
Scammers often use these platforms to impersonate company officials, extract sensitive information, or trick victims into joining pyramid-style MLM schemes disguised as legitimate job opportunities. They might request banking details, demand upfront payments, or pressure you into sharing private information quickly.
Keith Spencer, a certified professional resume writer with Resume Now, sheds light on why these tactics work:
"Scammers know this and are preying on people's eagerness to find a new role... Someone who has been out of work for months on end could be more susceptible to falling for a scam as their financial instability grows."
To protect yourself, always insist on professional communication methods. Ask for a phone call or video meeting to confirm the employer’s legitimacy. Cross-check their contact details on the company’s verified website. If they refuse to use official channels or won’t provide a company email address, it’s best to block them and report the suspicious activity to the platform.
5. Pressure to Share Personal Information Quickly
When it comes to spotting scams, one major warning sign to watch for is being pressured to share personal information in a hurry. While we’ve already discussed communication red flags, this is another tactic scammers use to exploit your trust. Genuine employers understand that sharing sensitive details takes time and requires proper verification. Scammers, on the other hand, rely on creating a sense of urgency to push you into acting without thinking.
High-pressure tactics are a major clue something’s off. As Keith Spencer points out, common red flags include unsolicited offers, promises that seem too good to be true, and urgent demands for personal data.
What kind of information are scammers after? They typically target Social Security numbers, credit card details, bank account information, and even passwords. They might disguise their requests as part of a payroll setup or a background check, sometimes even threatening you with "lost opportunities" if you don’t comply.
The numbers are alarming. In 2022, the FTC reported over 1.1 million cases of identity theft, with nearly 30% of victims losing more than $10,000. Scammers also use impersonation to trick people. For example, in January 2025, fraudsters pretended to be Chase Bank representatives, sending emails that directed victims to a fake website (chase-secure-login.com) to steal banking credentials. Similarly, in March 2025, scammers sent IRS-themed emails containing malicious ZIP files to collect sensitive data.
How can you protect yourself? Never share personal information unless you’re absolutely sure the request is legitimate. If someone claims to represent a company, hang up and contact the organization directly using a verified phone number from their official website. Legitimate side hustle opportunities will never pressure you to disclose sensitive financial details immediately.
McAfee security experts emphasize this point:
"Criminals want you to pay them or give them your information quickly - before you have a chance to think about it".
Take the time to research and verify before handing over any personal information. If you’re unsure, it’s always better to disengage and reach out to your bank or another trusted source for advice.
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6. Check Overpayment or Fake Payment Scams
Overpayment scams are a classic way fraudsters take advantage of trust. Here’s how it works: they send you a fake check for more than the agreed amount and then ask for a refund of the excess. The catch? The check is fake. While banks might make the funds from the deposit available quickly, it can take weeks for the fraud to be uncovered. By the time the check bounces, you’ve already sent back the "refund" and are left footing the bill. Staying cautious and sticking to verified payment methods can help you avoid this trap.
In 2019 alone, fake check scams cost consumers over $28 million, with a median loss of $1,988. Young adults are particularly at risk. Common red flags include someone insisting on overpaying, demanding a quick refund through untraceable methods like wire transfers, gift cards, or cryptocurrency, or pressuring you to act before the check clears. A legitimate buyer or employer will never ask you to deposit a check and then send money elsewhere.
To protect yourself, always wait for payments to fully clear before taking any action. Accept only the agreed-upon amount, and if there’s an overpayment, contact the issuer directly to confirm its validity. If anything seems off, cancel the transaction immediately.
As the FTC puts it:
"The checks are counterfeit, says the FTC, but good enough to fool unsuspecting bank tellers."
7. Poor or Missing Online Presence
A weak online presence can often raise suspicions about a company's legitimacy. Genuine businesses usually invest time and resources into building a professional digital footprint to establish trust and credibility with potential employees and partners. This includes maintaining active and verified social media profiles, which help reinforce their authenticity.
Start by taking a close look at the company’s website. Does it appear polished and complete? Legitimate companies typically provide essential details like contact information, leadership bios, and a clear mission statement. These elements not only reflect professionalism but also serve as a foundation for further verification. On the other hand, scammers often create websites or profiles that lack meaningful activity or information.
For a deeper dive, use tools like WHOIS to check the domain's age. A company claiming years of experience but operating on a newly registered domain should raise a red flag. Cross-check the contact details provided on their website and test them by asking specific questions about their location or operations. Then, compare their responses with publicly available information. Discrepancies can often signal something isn’t right.
It’s worth noting that job scams are becoming more sophisticated. According to FlexJobs, job scams surged by 118% in 2023, underscoring the importance of thoroughly researching any opportunity before proceeding. A strong and transparent digital presence is one of the key indicators of a legitimate business, so don’t overlook this critical step in your evaluation process.
8. Poor Grammar and Inconsistent Branding
Legitimate businesses take their communication seriously, ensuring it aligns with their brand's image. So, when a job posting or email is riddled with spelling mistakes, grammatical errors, or inconsistent visuals, it's often a glaring sign of a scam.
Grammar slip-ups are one of the easiest ways to spot a scam. These postings or emails frequently contain mistakes like misspelled words, incorrect punctuation, or an excessive number of exclamation points. Microsoft researcher Cormac Herley sheds light on this tactic, stating, "Anybody who doesn't fall off their chair laughing is exactly who they want to talk to". In other words, scammers intentionally use poor grammar to weed out skeptical individuals, focusing instead on those less likely to catch the scam.
Another red flag? Visual inconsistencies. Legitimate companies stick to strict branding guidelines, so mismatched logos, clashing fonts, or other design errors can signal something's off.
The cost of poor communication isn't just about appearances - it hits businesses hard. Small businesses lose an average of $420,000 annually due to miscommunication, while larger companies face losses of $62 million each year. These figures highlight why professional communication is non-negotiable for reputable companies.
This same standard applies to employers. Just as job seekers know their resumes and cover letters must be error-free, employers are expected to maintain professionalism in their communication. If they can't, it raises serious doubts about their credibility. In fact, more than half of 120 surveyed American corporations consider writing skills a key factor in promotion decisions, proving how much professional communication matters.
Other warning signs include generic greetings, inconsistent tone, or formatting issues, all of which are common in phishing attempts. If something feels off, take the extra step to verify the sender's authenticity. Use official contact information instead of replying directly to the suspicious message. This simple precaution ensures you're holding employers to the same professional standards they expect from you.
Keep in mind, cybercriminals often operate from countries where English isn't the primary language. Combine that with the speed at which they churn out scam emails, and it's no surprise these errors are so common.
Next, we'll dive into another red flag: package forwarding or reshipping scams.
9. Package Forwarding or Reshipping Requests
Steer clear of any work-from-home job that involves receiving and reshipping packages. These offers, often found in suspicious online job postings, can drag you into illegal activities without your knowledge.
Scammers lure victims with promises of easy cash, but the reality is far from harmless. Typically, these schemes involve receiving packages - often containing stolen goods - at your home. You’re then instructed to repackage and ship them to what is vaguely described as a logistics center or warehouse. What they don’t tell you is that these items are frequently bought with stolen credit cards, turning you into an unwitting participant in criminal activity.
Shockingly, about 65% of fake online job listings are tied to package reshipment scams. According to the Better Business Bureau (BBB), over half of the victims in such schemes were already unemployed, making them more vulnerable to these fraudulent offers. These scams often feature vague job descriptions, require no prior experience, and promise salaries that are too good to be true.
Victims not only lose out on promised pay but may also face serious legal repercussions. Charges like wire fraud, bank fraud, identity theft, and mail fraud are common in these cases. The United States Postal Service (USPS) has issued a clear warning:
"Victims of this scam don't get paid for their work, and the USPS warns that these complex scams can potentially trick job seekers into committing felonies. Remember, these are not real employers - they are criminals, and by reshipping packages, you may be assisting in a crime."
The legal stakes are high. Even if you’re unaware of the scam, you could still be viewed as complicit. Federal charges tied to reshipping scams can lead to severe penalties, including prison sentences of up to 30 years. One alarming example involves Matthew Bergwall, a Florida college student, who was charged with mail fraud and computer fraud after unknowingly participating in a reshipping scam. His case involved $3.5 million in liabilities.
The financial risks don’t stop there. Scammers may ask you to falsify shipping documents, a federal offense, or accept payments that could further implicate you in illegal activities. Victims can also face lawsuits for their role in theft or fraud.
To protect yourself, watch for warning signs like requests for personal data, unnecessary credit checks, inconsistencies in job postings, or demands to complete forms like W-2s or 1099s. If you’re approached with such an opportunity, avoid receiving packages for strangers or taking calls asking you to reship items. When in doubt, verify the legitimacy of the job and report any suspicious activity to Postal Inspectors at 1-877-876-2455 (press 5).
Security expert Greg Collier stresses the importance of spotting these scams early:
"Reshipping scams are more than just empty promises, they are dangerous schemes that can have lasting legal and financial consequences. Early detection is essential to avoid becoming entangled in these deceptive operations."
Up next, we’ll look into unusual payment methods that no legitimate employer would ever use.
10. Payment Through Cryptocurrency or Gift Cards
Avoid paying with cryptocurrency or gift cards - legitimate employers will never ask for these payment methods.
Scammers favor these methods because they’re nearly impossible to trace or reverse. Once the transaction is complete, victims are left with little chance of recovering their money. Lois Greisman, Associate Director of the FTC Division of Marketing Practices, explains:
"Just as scammers like certain forms of contact, like the telephone, which are most effective at getting someone to part with their money, they like certain types of payment because they can take the money with very little trail, while for the consumer it's virtually impossible to get this money back."
The statistics paint a grim picture. Between January and September 2021, nearly 40,000 people reported losing a staggering $148 million to gift card scams. Cryptocurrency scams have been even more devastating, with median losses reaching $10,000 per victim.
These payment methods appeal to scammers because they offer anonymity and speed. Cryptocurrency transactions are irreversible, leaving no legal recourse for victims. Gift cards, on the other hand, are easy to purchase, lack buyer protections, and allow scammers to convert them into cash quickly while staying anonymous.
Scams often come disguised as investment opportunities promising guaranteed returns or extraordinary profits. Scammers may impersonate well-known companies or agencies to create a sense of urgency, often requesting upfront cryptocurrency payments for "training materials" or after issuing fake checks.
Watch out for warning signs like offers that sound too good to be true, demands for immediate payment, or promises of risk-free profits. Before accepting any job offer or making a payment, research the company thoroughly. Check for reviews, complaints, or scam reports online. Always verify payment requests using official contact information, not details provided in suspicious messages.
The FTC offers a straightforward rule to stay safe:
"Anyone who says you have to pay by cryptocurrency, wire transfer, or gift card is a scammer. If you pay, there's usually no way to get your money back."
If you encounter these scams, report them to the FTC at ReportFraud.ftc.gov. For gift card scams, contact the gift card company immediately to see if recovering your funds is possible. Acting quickly may help minimize losses and protect others from falling victim.
Conclusion
Spotting the warning signs of scams is crucial when exploring online side hustles. According to the Better Business Bureau, job scams affect 14 million people annually, leading to a staggering $2 billion in losses. In 2019 alone, victims reported an average loss of $1,500 per scam.
Stay vigilant by revisiting the red flags discussed earlier. Be wary of unsolicited job offers, especially those arriving within 24 hours or outside regular business hours. As safety expert Elle Aldridge points out, "Hiring managers should send you emails from their business addresses, not from a personal account like Gmail". Never share sensitive information or make payments without verifying the legitimacy of the employer. Genuine companies have structured hiring processes and don't skip proper vetting.
Your strongest tool is research. Check the company's name, read reviews, look for scam alerts, and rely on official websites to confirm details.
For a safer approach, e-SideHustles offers over 370 pre-screened resources for online side hustles and work-from-home jobs. This directory includes opportunities in freelancing, e-commerce, tutoring, passive income, and more - helping you sidestep the risks of unverified job postings.
If you encounter a scam, reporting it can make a difference. Even if you haven't lost money, submit suspicious activities to the Federal Trade Commission at ReportFraud.ftc.gov. As the FTC emphasizes, "Your story makes a difference. Every report is a piece of the puzzle that lets the FTC see the full picture of what scammers are doing and then stop them". These reports are shared with over 2,800 law enforcement partners. By reporting, you contribute to a safer online space for everyone.
FAQs
How can I tell if an online job offer is legitimate?
To figure out if an online job offer is genuine, keep an eye out for these warning signs:
- The job offer appears out of nowhere, or you're hired without even having an interview.
- The salary seems unrealistically high for the position or involves very little effort.
- The company asks for sensitive personal or financial details right away.
- You're asked to pay for training, materials, or other upfront fees before starting.
It's always a good idea to research the company online to confirm its legitimacy. Look for a professional website, read reviews, or check for any scam reports. If something doesn’t sit right or seems too good to be true, trust your gut and proceed carefully.
What should I do if I think I’ve fallen for an online side hustle scam?
If you think you’ve fallen victim to an online side hustle scam, it’s important to act fast to safeguard your finances and personal information. Start by reaching out to your bank or credit card provider to report the incident and secure your accounts from further harm. Then, cut off all communication with the scammer and make sure to save any evidence, such as emails, messages, and transaction records.
You should also report the scam to the Federal Trade Commission (FTC) and your state’s attorney general. Additionally, consider filing a complaint with the Internet Crime Complaint Center (IC3) to notify federal authorities. These actions can help limit the damage and support any ongoing investigations.
Why do scammers often ask for payment through cryptocurrency or gift cards, and how can I protect myself?
Scammers often gravitate toward cryptocurrency and gift cards because these payment methods are incredibly difficult to trace and typically irreversible. This makes it almost impossible for victims to get their money back. Gift cards, in particular, are a scammer's favorite. They're simple to buy, come with no buyer protections, and can be quickly turned into cash or cryptocurrency - all without revealing the scammer’s identity. Over the years, scams involving gift cards have drained millions of dollars from unsuspecting victims.
To stay safe, watch out for anyone asking you to pay with cryptocurrency or gift cards, especially if they’re pushing you to act quickly. Legitimate businesses will never request payment this way. Double-check any payment requests on your own, and never share gift card codes or cryptocurrency details with strangers or unfamiliar organizations.
