The Fear of Not Getting Paid: How to Avoid Scams and Protect Your Income

As a freelancer or small business owner, one of the biggest fears that can keep you up at night is not getting paid for the hard work you've done. It's a frustrating and financially vulnerable situation that can leave you angry and wondering how you'll pay your bills. Unfortunately, scams and non-payment are all too common in the world of freelancing, which makes it crucial to understand the warning signs and how to protect yourself. In this article, we'll explore the common types of payment scams, how to vet potential clients, and what legal options you have if you do fall victim to a scam. By following our tips and strategies, you can take control of your financial future and avoid the headache of unpaid invoices.

Pro tip: for translators, it's not possible to ask an agency to pay you in advance . I do get that. But if you work with direct clients, please, please get paid in advance. We live in the age of Amazon, so people are not really surprised that they need to pay you before they actually receive their service. So if you take anything away from this article, remember this. Don't be afraid to ask for payment in advance!

Common types of payment scams

Payment scams come in many forms, and it's essential to understand each one so that you can recognize them when they come up. Here are some common types of payment scams that freelancers and small business owners face:

Fake checks

This scam is prevalent and can be difficult to identify. A scammer may send you a check for more than the amount owed and ask you to deposit it into your bank account. They'll then ask you to send back the overpayment via wire transfer or another payment method. Once you've sent the money, the original check will bounce, and you'll be out the overpayment you sent.

Phishing emails

Phishing emails are designed to look like legitimate emails from a client, but they're actually scams. They may ask you to click on a link or download an attachment that contains malware or a virus. Once the scammer has access to your computer, they can steal your personal information or use it for identity theft.

Upfront payment scams

Scammers may ask you to pay a fee or deposit upfront before they'll send you work. Once you've paid the money, they'll disappear, and you'll never hear from them again.

Signs of a potential scam client

Now that you know the common types of payment scams, let's talk about how to identify a potential scam client. Here are some warning signs to watch out for:

Overly aggressive or pushy

Scammers may try to pressure you into taking on a project or paying a fee. They may use fear tactics or make unrealistic promises to get you to agree to their terms.

Vague or incomplete project details

A legitimate client will provide you with clear project details and expectations. A scammer may be vague or incomplete in their project requirements, which can be a red flag.

Poor communication

If a client is slow to respond or doesn't provide clear answers to your questions, it may be a sign that they're not legitimate.

How to protect yourself from payment scams

Protecting yourself from payment scams requires a combination of common sense, due diligence, and a few tools and strategies. Here are some tips for protecting yourself:

Research potential clients

Before agreeing to work with a new client, do your research. Look up their website, social media profiles, and any reviews or feedback from other freelancers or customers.

Use payment policies and contracts

Having clear payment policies and contracts in place can protect you from non-payment or payment disputes. Be sure to outline your payment terms, due dates, and consequences for late or non-payment.

Payment policies and contracts

Having clear payment policies and contracts in place can help prevent payment disputes and protect your income. Here are some key elements to include in your payment policies and contracts:

Payment terms

Outline your payment terms, including the payment amount, due date, and payment method.

Late payment penalties

Include consequences for late or non-payment, such as a late fee or interest charges.

Payment schedule

If you're working on a long-term project, consider setting up a payment schedule. This will ensure that you get paid at regular intervals and can help prevent non-payment.

Tools and resources for verifying clients and payments

There are several online tools and resources available to help you verify clients and payments. Here are a few to consider:

LinkedIn

LinkedIn is a great tool for researching potential clients. You can see their work history, connections, and recommendations from other professionals.

Glassdoor

Glassdoor is a website that provides information about companies, including reviews from current and former employees. This can give you insight into the company's culture and how they treat their employees.

Proz.com Blueboard

Even if you don't check the Blueboard, a quick Google search with the email or name of the potential scammer will give you results, usually from forums. So, be sure to at least do that.

Payment verification tools

Payment verification tools like Escrow.com or PayPal can help protect you from payment scams.

Communication tips for avoiding payment issues

Clear communication is key to avoiding payment issues. Here are some tips for communicating with clients:

Be clear about your payment terms

Make sure that your payment terms are clear from the outset. This includes the payment amount, due date, and payment method.

Follow up on overdue payments

If a payment is overdue, follow up with the client to remind them of the payment terms and due date.

Be professional

Maintain a professional demeanor when communicating with clients, even if you're frustrated or angry.

What to do if you encounter a payment scam

If you do encounter a payment scam, there are several steps you can take to try and recover your income. Here are a few to consider:

Contact the client

Try contacting the client to see if you can resolve the issue. If they're unresponsive or refuse to pay, move on to the next step.

Contact your bank or payment processor

If you've been scammed via a wire transfer or another payment method, contact your bank or payment processor to see if they can reverse the transaction.

Recovering unpaid income

If you've exhausted all other options, you may want to consider legal action to recover your unpaid income. Here are some legal options to consider:

Collection agency

You can hire a collection agency to try and recover your unpaid income. The agency will take a percentage of the recovered amount as payment. (I had to resort to this early on in my career, and it worked ;)

Hire a lawyer

If the amount owed is significant, you may want to hire a lawyer to pursue legal action. (I had to do this too, but in Italy at least it's not worth it unless you really have a good amount of money to recover and your client is in Italy).

Trusting your gut and setting boundaries

Finally, it's essential to trust your gut and set boundaries when it comes to payment disputes. If something feels off about a potential client or project, trust your instincts and walk away. Be clear about your payment terms and don't let clients pressure you into accepting less than you're worth.

Conclusion: Staying safe and secure in your freelance career

In conclusion, protecting your income as a freelancer or small business owner requires a combination of common sense, due diligence, and a few tools and strategies. By understanding the common types of payment scams, vetting potential clients, and having clear payment policies and contracts in place, you can avoid the headache of unpaid invoices. If you do encounter a payment scam, there are steps you can take to try and recover your income, including contacting the client, your bank or payment processor, and filing a complaint or pursuing legal action. Remember to trust your gut and set boundaries when it comes to payment disputes, and seek out support from freelancer communities and professional associations. By following these tips and strategies, you can stay safe and secure in your freelance career.

What about your payment experiences? Do you get paid in advance? Why not?

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ABOUT ME: I'm Natalia Bertelli, an English/Spanish to Italian legal translator and translator coach. Since 2008 I have been working on contracts, judicial deeds, certificates, corporate translations for foreign clients who want to do business in Italy, get a dual citizenship or simply settle in my beautiful country.

Need guidance in your translation business? Let's talk!

www.italiancitizenshiptranslator.com