Fraud in Freelancing and IT: How to Protect Your Rights

Over the years of working as a freelancer and in IT companies, I have repeatedly encountered unscrupulous clients and employers. In this article, I will share my personal experience and tell you how to protect your rights if you have been deceived.

Common Freelancer Fraud Schemes

Freelancing is freedom, but also big risks. Here are the most common fraud schemes that freelancers face:

• Refusal to pay after work completion. The client receives the result of the work and simply disappears or finds far-fetched reasons to refuse payment.
• Constant expansion of requirements. The client constantly adds new requirements to the project without changing the cost and timing.
• Underestimating the scope of work during discussion. The client deliberately does not mention important details of the project, and then demands their implementation within the original agreement.
• Promise of "ongoing cooperation". The client offers to complete the first project at a reduced price, promising regular orders at normal rates in the future.

How to Protect Yourself: Preventive Measures

The best defense is prevention of problems. Here are some recommendations that will help avoid unpleasant situations:

1. Enter into a written contract

Even if the client seems reliable, always formalize the relationship in writing. The contract should contain:

• Clear description of work and requirements
• Deadlines
• Cost and payment procedure
• Procedure for acceptance of work
• Responsibility of the parties for breach of obligations

2. Take a prepayment

Never start work without a prepayment. The optimal scheme is 50% prepayment and 50% after completion of work. For large projects, you can split the payment into several stages.

3. Record all agreements

Save all correspondence with the client. If important details were discussed in a voice or video call, after the conversation, send the client a letter with a summary of the agreements and ask for confirmation.

4. Check the client

Before starting cooperation, look for information about the client on the Internet, check reviews on freelance exchanges, ask for recommendations from colleagues.

What to Do If You've Been Deceived

If preventive measures did not help and you encountered an unscrupulous client, here is an algorithm of actions:

1. Send a claim

The first step is to send a written claim to the client. In the claim, indicate:

• The essence of the breach of obligations
• References to contract clauses
• Specific requirements (payment, penalty, etc.)
• Deadline for voluntary fulfillment of requirements
• Warning about intention to go to court in case of refusal

2. Go to court

If the claim did not help, the next step is going to court. For amounts up to $1,500, you can file an application with a magistrate judge, for larger amounts - with a district court.

To file a lawsuit, you will need:

• Statement of claim
• Copy of the contract
• Evidence of work performed
• Evidence of sending a claim
• Receipt for payment of state duty

3. Use alternative methods of influence

In parallel with legal measures, you can use:

• Publication of reviews on specialized platforms
• Appeal to professional communities
• Mediation (if the client is ready for dialogue)

Features of Protecting the Rights of Self-Employed

If you work as self-employed, you have additional advantages in protecting your rights:

• Official receipts confirming the provision of services
• Ability to conclude official contracts
• Tax history of relationships with the client

Conclusion

Protecting your rights is not only a legal, but also a psychological process. Don't be afraid to stand up for your interests and remember that most disputes are resolved before court if you act competently and persistently.

If you have questions or want to share your experience, leave comments below the article or contact me directly.