I have been scammed a few times and I felt horrible. Have you been scammed too?  Buyers who have a habit of getting work done for nothing always target new freelancers.  Freelance sites are clear about how you can avoid losing money. Most of them insist that you ask the buyers to escrow payments. If you do not do this, do not even bother reporting a fraud to the site's administrators. They will direct you to the terms and conditions and you will feel defeated and stupid. If your main supply for contracts is various freelancer sites, the following tips can help you avoid scams.

Tip No. 1 - Never accept to be paid outside the freelance site by new buyers.

Reading is very necessary because it allows you weigh the buyer's requirements against your skills. Always stay away from employers who offer to pay you by any other method except via the site itself.  If such buyers are new and when you check on ratings they have none, offering to pay you outside the side may be a strategy to con you.  Besides, most sites do not allow you get a rating if you choose to receive payment outside the site.  If you actually get scammed, you would not only lose money and time but also a chance to grow your online profile.

Tip No.2 – Stay away from buyers who deny you a rating but want continued services

As long as you do not have an open ongoing project with a buyer, he or she can decide to terminate your services one day, and rip off everything.  If you can accept, then ask for daily payments for every completed task.  I have been scammed twice in this manner. The two clients who stole my earnings were quick paymasters at first. Little did I know that they were actually trying to win my trust? Gradually, they stopped a daily pay out plan and adapted a weekly one. Then, they progressed to two weeks. Before I knew it they had stolen a lot from me. Now I learnt my lesson.

Tip No.3 - Avoid buyers who pretend to want your help but they in fact want you to work outside the site

They wait until you submit your bid and send a really sweet message.  At the same time, they attach a file and request you to open it to see the project details. When you open the file, you find an email address and the buyer is requesting you to send an email.  Others will mask an email address in their project page or ask you openly via the private message facility. Never reply because that would put you at risk of being suspended for responding via email before being chosen a winner.

Tip No. 4 - Never bid on a project if the buyer cannot escrow payments or send pay outs daily.

Although I have worked with some great clients month after month without asking for milestones, I would advice you not to try it.  If you are a new service provider, do not even try it unless the buyer in question has a very positive payment record.  Even so, always be an honest person and never treat your good employers badly. For instance, on two occasions, I escrowed money for the providers and soon after they disappeared for weeks. So my money was locked into that account, stagnant and had to hire other workers.

Tip No.5 – If a buyer refuses to use your work, especially articles, use them quick

Some buyers bring up fake excuses, refuse to pay you and shamelessly post your articles online.  If such a thing happens to you, try to find a person to buy your articles. Since finding a buyer who can buy articles on a given niche is hard, just create a free blog and use them.  It hurts to find your unpaid articles published already.