7 Red Flags To Look for When Searching for an Online Job

Today's guest article, 7 Red Flags To Look for When Searching for an Online Job, is written by Ted James, owner of the financial help website "Ted Knows Money". Ted James specializes in private, one-on-one coaching and counselling sessions to help people take control of their finances. 

There are many legitimate opportunities to find work online, but unfortunately, there are also many scams. If you need some extra income or you’re currently unemployed, it’s important to know what red flags to look out for, so you don’t find yourself getting scammed. Money Solutions Online urges you to keep an eye out for the following six signs that an online job opportunity might not be worthwhile.

1. No Phone or Video Interview

According to GlobeNewswire, 92% of adults in the U.S. are stressed out by the prospect of a job interview. It might seem like a dream, then, to find out that a job you’re interested in doesn’t require an interview at all. On the contrary, this should be a red flag. Even if a position is online, employers should schedule a phone or video interview.

2. Requiring a Fee to Start Work

In some cases, a prospective employer may ask applicants to pay a fee in order to cover the costs of training or some other expense. As you might guess, though, this is rarely a legitimate request, and an employer should never require payment from an online job candidate.

3. Unclear Terms of Payment

Perhaps you’ve applied for an online job through an employer’s website or by browsing postings on a job board. You can find many freelance, eCommerce, and other remote jobs this way. No matter what kind of job you pursue, though, you must be sure that the opportunity includes clear details regarding the method of payment. If you can’t seem to get a straight answer, you should be cautious about proceeding.

4. Asking for Personal Information

Employers need to collect information such as your full name, address, and social security number in order to complete your W2. If you are a freelancer, a client may need this information in order to complete your 1099. These documents will be essential to ensuring you can stay on top of taxes. If an employer requests sensitive information that’s not for tax purposes, though, you should be wary.

5. Mandatory Recruiting Requirements

Some online jobs may ask applicants to recruit other candidates as part of the onboarding process. If you’ve assessed your most marketable skills and you find that you’re great at marketing and connecting people, an opportunity like this might seem ideal. You should reconsider, though, if your would-be employer requires referrals from your friends and family. Experian warns that this may be a sign that the job is a multi-level marketing company. Although these opportunities are not inherently fraudulent, potential profits may be advertised deceptively.

6. Too Good To Be True Benefits

The most common sense way to avoid scams is to ask yourself — is this too good to be true? If so, there’s a good chance that there’s a catch. You can be sure to sidestep the potential pitfalls of online jobs by starting your own online company and establishing an LLC. An LLC is a fantastic strategy for reducing your business’s tax liability, protecting your assets, and minimizing paperwork. Double-check the business laws in your state and get in touch with a formation service.

7. Do Some Research

It’s always a good idea to do some digging on the company you are applying to before pursuing it. This recommendation is especially important if the company reached out to you without any solicitation. Look them up on review sites like Glassdoor and look them up online. Check out their website. There are many options for commerce, so if they’re claiming to be a bigger company, but they’re still using a clunky website, then it can be a red flag. A good ecommerce website will have easy navigation and customization for each customer. And it will include data tracking that allows the company to further customize their marketing efforts. Ecommerce without these features is often fraudulent.

Don't Be Scammed by Job Fraudsters