Memphis Man Exposes Job Scam Requiring Crypto Payment: Tips to Avoid Similar Side Hustle Frauds

Amid rising costs and inflation, many Americans are looking to take up side hustles to support their incomes. The demand for remote jobs also remains high as companies enforce their return-to-office mandates. This, however, has led to an increase in scams targeting prospective workers. One such incident was reported by a Memphis resident who caught the scam in time and reported it to the Better Business Bureau.

Chip Cherry told FOX13 that he was looking for a side hustle as he wanted to make some extra money to support his family with a daughter in college. He came across a lucrative offer that was promising up to $300 for three hours of work. However, Cherry realized that it was a scam when the firm asked for a payment in cryptocurrency to let him withdraw his earnings. “If it looks too good to be true, it probably is," warned Cherry, who reported the incident to the BBB of the Mid-South.

Cryptocurrency and Employment scams were the riskiest type of fraud in the U.S. in 2023, according to BBB’s annual report. Based on 67,000 reports of scams, the BBB said the crypto scams were the riskiest while employment scams were the second riskiest scam of 2023.

About 80% of Americans targeted in crypto scams lost money, the BBB reported. In employment scams fraudsters are looking to steal more than just money as they are going after the victim’s personal information as well, BBB spokesperson Daniel Irwin told FOX13.

Work-from-home jobs or side hustles appeal to everyone. However, scammers try to lure victims with such job offers promising high remuneration for doing almost nothing. While some scammers demand an upfront fee for registration or enrolment, some may trick victims into buying expensive equipment or asking money for such resources.

Scammers also offer job seekers fake certification programs to help them get better jobs or pay. These courses require an upfront payment and are often non-existent or of low-quality material created to fool people.

Scammers advertise jobs that require people to write letters or stuff envelopes as a job, promising hefty commissions and pay with low effort. However, these schemes may also require an upfront payment for registration or for supplies that the scammer promises to send. Some may be a multilevel marketing scheme where scammers ask the victims to recruit more people with their commission tied to the number of people they hire.

In this, scammers pose as recruiters, headhunters, or staffing agencies offering placements to job seekers. They then ask for a payment for their services and disappear without providing any help.

Unsolicited job offers that come via text message or encrypted message platforms like WhatsApp, Telegram, and more, may be a scam.

Jobs that promise a very high income with low effort while working from home, most often turn out to be fake.

Furthermore, if the hiring process for a job is quick, with no interview, and no vetting of qualifications, experience, and references, it may be a scam.

Jobs that ask candidates to top up their account with their money or cryptocurrency to complete tasks, may be fake. Apart from that the jobs that need transferring money, making purchases, or receiving packages on behalf of someone else could be a scam as well.