Is Upwork a Scam? 

If you’re thinking of using Upwork to find side gigs, you need to know if it’s safe. Is Upwork a scam? 

Below, we explain whether Upwork is a scam and discuss some steps you can take to improve your safety when using this platform. 

What Is Upwork?

Upwork is one of the largest global freelancing platforms and a publicly traded company. 

It works as a marketplace where clients can post job listings for all types of professional work (such as writing, programming, and customer service)  and freelancers can browse them (and submit proposals).

Upwork provides tools for project management, time tracking, messaging, file sharing, and payment processing, and takes a percentage-based fee from freelancers’ earnings. 

Is Upwork a Scam?

No, Upwork is not a scam. It’s a legitimate freelance platform. 

However, user reviews of Upwork are mixed:

• 1.3 out of 5.0 stars (from 246 reviews) on Trustpilot.
• 4.1 out of 5.0 stars (from 518 reviews) on Indeed.
• 1.1 out of 5.0 stars (from 71 reviews) on ProductReview. 
• 3.6 out of 5.0 stars (from 787 reviews) on Glassdoor. 
• 4.6 out of 5.0 stars (from 1,811 reviews) on G2.

On online forums like Reddit, people report varying experiences with Upwork. 

Many users complain about the high competition on the platform, which drives down prices, as well as Upwork’s fees, and having to pay for “connects” to apply for jobs. 

A significant number of freelancers and clients also note they’ve encountered scams on Upwork, including scam job postings, non-paying clients, or fake profile activity. 

One person describes Upwork as “98% scam.” 

In 2024, the writer Justin Caffier shared his experience of getting scammed on Upwork in an article on Mashable. 

The client Caffier landed on the Upwork platform had a verified profile and good reviews, so when they hired him for a trial piece with $5 in escrow and a promise of full payment later, he delivered the work. Then… he was ghosted for the remaining $475. 

Though other freelancers had similar complaints about the same client, Upwork apparently refused to enforce payment, ban him, or share details beyond legal channels. 

In its user agreement, Upwork says it does not guarantee payment if a client fails to pay or issues a chargeback, except in certain “Payment Protection” scenarios (which have strict tracking rules).

The platform can also reverse payments already made if the client wins a dispute or issues a chargeback.

Another thing to note from Upwork’s user agreement is that it can terminate or suspend your account at its discretion, even without a detailed explanation. This means that if Upwork misinterprets a policy violation, you could lose all client access instantly.

A small minority of internet users say they’ve had a good experience on Upwork.

One person said: “2024 has been my best year yet on Upwork. Not making full-time income, but a steady flow of projects and 95% great clients. I’ve been lucky to have some short term clients come back to me with more work, and have taken on some clients with meaty project needs.”

Upwork Security

In its privacy policy, Upwork says it maintains “reasonable administrative, technical, and physical safeguards” to protect your personal information. 

The company provides more information about how it keeps your personal data safe in its ‘Security and Privacy’ page. 

For example, to protect your account, it provides multi-factor authentication, single sign-on, and custom session timeouts. 

It also encrypts data and uses machine learning to safeguard users against malicious behaviour. 

The platform meets privacy and security industry certifications, such as SOC 2 Type 2, PCI DSS, and ISO 27001 & 27018. Plus, it adheres to the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), and has voluntarily implemented an Anti-Money Laundering Program. 

Its Information Security Management System (ISMS) explains how the company protects its data and systems. It sets out who is responsible for security, aims to keep information private, accurate, and accessible, and requires all employees to take training so they know how to follow these rules. 

The company has a bug bounty program where researchers can test Upwork’s platform and submit any security holes they find. 

Upwork Privacy

Upwork explains the kind of information it collects, for what purposes, and with whom it shares it in its privacy policy.

It collects the following personal data:

• Identifiers (name, date of birth, IP, social media info, etc.).
• Contact information (email, phone, addresses).
• Sensitive IDs (SSN, passport, tax IDs).
• Commercial information (transactions, services offered).
• Financial data (credit card, bank info).
• Device and internet activity (cookies, browsing history, search terms, usage patterns).
• Geolocation (approximate).
• Sensory information (call recordings, optional webcam shots).
• Professional information (work history, earnings, resume).
• User-generated content (posts, ratings, portfolio).
• Work Diaries data (activity logs, screenshots, keystrokes, with user consent).

The company uses this data to operate, provide, and improve services as well as process payments and verify identity.

It also uses it to prevent fraud, personalize content and ads, communicate updates and marketing (opt-out available), meet legal and contractual obligations, and support legitimate business interests.

Upwork may share your information with other Upwork users for business transactions (e.g., proposals, contracts, payroll), service providers (payment processors, analytics, AI partners, security vendors), for legal purposes (law enforcement, compliance), and internal business transfers (affiliates, mergers).

Its generative AI features may use anonymized or public platform data. In other words, when you use Upwork’s AI-powered features, the platform may send what you type, plus other relevant details from your account, to outside companies that provide generative AI services. 

Upwork says it applies safeguards before sending anything, like removing personal identifiers and trying to use only information that’s already public. 

The company may also share non-identifying/de-identified data for analytics and business purposes.

Certain categories of data (e.g., identifiers, internet activity) are used for targeted advertising (opt-out available).

Upwork keeps your information for as long as needed for business, legal, regulatory, or fraud-prevention purposes. It does not provide specific timelines. However, users can request deletion.

Data is stored in the U.S. but may be processed in other countries.

Depending on where you reside, you may have certain privacy rights. For example, you may be able to opt out of targeted ads and other disclosures to third parties. 

So, Should You Use Upwork?

Depends.

If you’re watchful for scams, meticulous with Payment Protection, and realistic about rates, Upwork can be a supplementary income source. 

On the other hand, if you want stability, predictable pay, and less competition, you’re probably better off looking for clients elsewhere. 

How to Use Upwork Safely and Privately 

• Protect your earnings. Use Upwork’s Time Tracker for hourly jobs, don’t start fixed-price work until escrow is funded for the milestone you’re working on, and always submit work via the “Submit Work for Payment” button. 
• Avoid “trial tasks” with vague payment promises. Especially those that pay after a “big project starts.”
• Check client history. Prioritize clients with verified payment and multiple completed contracts.
• Avoid scams. Be suspicious of jobs that sound “too good to be true.” Decline jobs asking for you to buy equipment or pay upfront costs (common scam).
• Watch for off-platform payment requests. It violates Upwork’s rules and eliminates Payment Protection.
• Report suspicious messages or job posts immediately. You can do this via Upwork’s “Flag” feature.
• Keep your personal data private. Don’t share personal phone numbers, emails, or addresses until you’ve established trust and ideally after a contract is in place. Use Upwork’s built-in chat, video, and file sharing instead of sending files via personal cloud storage.
• Be aware of webcam screenshots. Upwork’s time tracker can take them during hourly work, so keep only work-related material visible.
• Turn off profile visibility to “Upwork users only.” That way, search engines won’t index your profile.
• Review your privacy settings in Upwork. Control what’s public, what’s shown to clients, and who can see your work history.
• Opt out of targeted advertising. You can do this through Upwork’s privacy settings if you want to limit tracking.
• Limit portfolio samples to work you own or have permission to share. Don’t upload confidential client work.
• Follow Upwork’s terms strictly. Accounts can be suspended without a detailed explanation.
• Avoid over-relying on one platform. Build off-platform leads so you’re not vulnerable if your account is suspended.