How to Protect Your Business from Virtual Assistant Scams?

Introduction

Small businesses often turn to virtual assistants when the workload becomes overwhelming. Whether it’s handling emails, scheduling meetings, managing customer inquiries, or organizing data, bringing in extra support seems like the perfect way to free up time for more important tasks. The hiring process is often rushed – after all, businesses need help right away. Many rely on glowing testimonials, polished profiles, and convincing LinkedIn pages, assuming they’ve found the right person for the job.

But while some assistants are skilled professionals, others are scammers hiding behind fake identities and stolen work samples. They offer services they have no intention of delivering, request upfront payments, or bill for hours they never actually worked. Some even gain access to sensitive business data, putting companies at serious risk.

This issue is more common than many realize. According to a Better Business Bureau (BBB) report, 68% of hiring scams occur online. Additionally, the Federal Trade Commission (FTC) reported that in the first half of 2024, so-called “task scams” led to over $220 million in losses, accounting for 40% of all reported fraud cases this year. (Source: theverge.com)

The biggest problem? Many fraudulent virtual assistants appear completely legitimate. They mimic real professionals, craft believable success stories, and even use fake client reviews to build trust. Without a proper screening process, it’s easy to fall into their trap.

The good news is that these scams can be avoided. With the right approach, businesses can identify red flags early, choose trustworthy professionals, and avoid costly mistakes. This guide will explain the most common scams, how to spot warning signs, and what steps to take if your business falls victim to fraud.

Common Virtual Assistant Scams

Hiring a virtual assistant can be an effective way to manage workload, but scammers have found ways to take advantage of businesses that don’t thoroughly vet candidates. Fraud can range from fake credentials and upfront payment schemes to data theft and overbilling. Some scams are easy to recognize, while others are carefully planned to appear legitimate. Below are the most common types of scams businesses should be aware of before hiring a virtual assistant.

1. Fake Profiles and Stolen Portfolios

Many scammers create fake identities and use stolen work samples to present themselves as experienced professionals. They may copy LinkedIn profiles of real virtual assistants, slightly modifying details to avoid detection. Others download work samples from the internet and claim them as their own, giving the illusion of expertise.

Red Flags:

• Their profile picture appears on multiple websites (use Google Reverse Image Search to verify).
• They provide vague answers when asked about their experience.
• Their portfolio contains work that can’t be verified through links or references.
• They avoid video calls or make excuses for not turning on their camera.
• Their social media presence is inconsistent (e.g., their LinkedIn has no real connections, or their profiles have little activity).

How to Protect Your Business:

• Conduct a video interview to confirm their identity.
• Ask for work samples that can be verified through direct links.
• Request references from past clients and contact them directly.

2. Requests for Upfront Payments

Some virtual assistants insist on full or partial payment before starting work, claiming it’s a deposit or a way to secure their availability. While some professionals may require a retainer, scammers disappear after receiving the payment or deliver low-quality work that does not meet expectations.

Red Flags:

• They refuse to use escrow services like Upwork or Fiverr.
• They insist on PayPal “Friends and Family” payments, which cannot be disputed.
• They avoid milestone-based payment structures.
• They become defensive when asked about past work or references.

How to Protect Your Business:

• Use escrow payment platforms where funds are released only upon successful project completion.
• Implement milestone payments to reduce financial risk.
• Avoid paying through unprotected methods like bank transfers or cryptocurrency.

3. Fake Reviews and References

Some scammers fabricate testimonials or ask friends and family to write fake reviews on freelance platforms. This makes them appear more reliable and experienced than they actually are. Some even create multiple fake accounts to boost their ratings and credibility.

Red Flags:

• Reviews sound generic and don’t mention specific project details.
• They claim to have worked with well-known companies, but can’t provide proof.
• Their LinkedIn endorsements and references come from questionable or inactive accounts.
• They refuse to connect you with past clients for direct verification.

How to Protect Your Business:

• Look for detailed reviews that describe the type of work completed.
• Contact past clients and verify references.
• Cross-check their testimonials on multiple platforms to ensure consistency.

4. Billing for Work That Was Never Done

Some virtual assistants overcharge by logging time for tasks they never actually worked on. They may leave time-tracking software running while doing unrelated activities, use automated scripts to simulate work, or submit inflated invoices without providing real results.

Red Flags:

• They consistently take longer than expected to complete tasks.
• Reports or logged hours don’t match the actual work delivered.
• They refuse to use time-tracking tools with screenshot functionality.
• There are suspicious time entries (e.g., charging for 8+ hours of work on minor tasks).

How to Protect Your Business:

• Use productivity tracking software like Time Doctor or Hubstaff.
• Set clear deliverables and deadlines with measurable results.
• Require detailed breakdowns of completed tasks before releasing payments.

5. Subcontracting Work Without Permission

Some virtual assistants outsource work to unqualified individuals without informing the client. This leads to low-quality results, missed deadlines, and potential security risks. In some cases, businesses end up with a completely different person handling tasks than the one they originally hired.

Red Flags:

• There are inconsistencies in communication, writing style, or skill level.
• They suddenly take longer to respond to messages or miss deadlines.
• Tasks previously done correctly start showing errors.
• A new person suddenly joins the conversation without explanation.

How to Protect Your Business:

• Include a “No Subcontracting” clause in contracts.
• Clearly state that the work must be performed by the hired individual.
• Regularly review work quality to ensure consistency.

6. Phishing and Data Theft

Some scammers pose as virtual assistants to gain access to sensitive business information. This includes customer lists, passwords, financial records, and private documents. They can misuse this information, sell it to competitors, or use it for identity theft.

Red Flags:

• They demand full access to sensitive accounts without clear justification.
• They request passwords instead of using a password manager.
• They access files or systems outside of their assigned tasks.
• They become defensive when questioned about security protocols.

How to Protect Your Business:

• Use password managers like LastPass or 1Password to control access.
• Limit permissions to only what is necessary for their tasks.
• Regularly review access logs to detect unusual activity.

7. Fake Virtual Assistant Agencies

Some scammers operate fake agencies, claiming to offer a team of highly skilled virtual assistants. In reality, they either take upfront payments without delivering services or assign tasks to untrained workers who produce substandard results.

Red Flags:

• The agency has no verifiable address or legitimate website.
• Their contact details lead to generic emails (e.g., Gmail, Yahoo).
• They promise unusually low rates for high-quality services.
• There are inconsistent business policies or vague contract terms.

How to Protect Your Business:

• Work with reputable agencies like Wishup, which thoroughly vet assistants before hiring.
• Request company registration details to confirm legitimacy.
• Read independent reviews and verify client testimonials.

How to Avoid Virtual Assistant Scams

Hiring a virtual assistant can help businesses stay productive, but failing to conduct proper background checks can lead to fraud, financial loss, and security risks. Scammers often appear credible, making it essential to follow clear hiring steps to reduce the chance of becoming a victim. Here’s how businesses can protect themselves when hiring a virtual assistant.

1. Use Verified Hiring Platforms

Avoid hiring virtual assistants through random social media groups, unverified job boards, or direct email outreach. Platforms that provide identity verification, escrow payments, and client reviews reduce the risk of scams.

Recommended platforms:

• Wishup – For businesses looking for pre-vetted virtual assistants with structured hiring processes, Wishup offers a secure and efficient solution.
• Upwork – Offers payment protection and work tracking tools. upwork.com
• Fiverr – Reviews and ratings help identify experienced professionals. fiverr.com
• Toptal – Higher cost, but strict screening ensures skilled workers. toptal.com

A detailed guide to selecting the right virtual assistant service Best Virtual Assistant Services

Avoid:

• Virtual assistants who refuse to work through secure platforms.
• Job postings that require upfront payments or share only vague details.
• Listings with generic descriptions that don’t mention specific responsibilities.

2. Verify Identity and Work History

A well-designed profile and professional photo don’t always mean a virtual assistant is legitimate. Scammers often steal content from real professionals to appear credible.

How to check for authenticity:

• Run a reverse image search on their profile photo. If the same image appears on multiple unrelated websites, it’s likely fake.
• Request a short video call interview to verify their identity. Legitimate professionals will not avoid face-to-face communication.
• Ask for work samples with verifiable links to actual projects.
• Check their LinkedIn connections and see if they engage with industry-related content.

3. Never Pay Upfront Without a Contract

Scammers often demand full or partial payment before starting work and then disappear. Even legitimate virtual assistants should agree to a structured payment system that protects both parties.

Safer payment methods:

• Use escrow services provided by platforms like Upwork or Fiverr.
• For direct hires, use milestone-based payments rather than full upfront fees.
• Avoid PayPal “Friends & Family” transfers, bank transfers, or cryptocurrency payments with no refund options.

Red Flags:

• Refusal to sign a contract detailing work terms and payment schedules.
• Insisting on payment via untraceable methods.
• No clear breakdown of pricing and services.

4. Use Secure Password Management

If a virtual assistant needs access to company accounts, never share login credentials directly.

Best practices:

• Use a password manager like LastPass or 1Password to share access securely.
• Grant limited permissions rather than full account access.
• Regularly review login activity to detect suspicious behavior.

5. Set Up a Trial Period Before Long-Term Contracts

Before committing to a long-term agreement, start with a test project to evaluate work quality, responsiveness, and reliability.

How to test reliability:

• Assign a small, time-sensitive task and monitor how it’s handled.
• Check if the quality matches what they promised in their portfolio.
• See how quickly they respond and communicate about deadlines.

If the assistant fails to meet expectations or shows signs of dishonesty, move on before wasting additional time and money.

6. Track Work Progress and Deliverables

One of the most common scams involves billing for work that was never done. Businesses can prevent this by using project management and time-tracking tools.

Recommended tools:

• Time Doctor – Tracks work hours and takes screenshots for accountability.
• Hubstaff – Monitors productivity with activity levels and reporting.
• Trello, Asana, ClickUp – Helps manage assigned tasks and track progress.

If a virtual assistant refuses to use any tracking system, this could be a warning sign.

7. Use Legal Agreements to Protect Your Business

A clear contract should outline expectations, deliverables, payment terms, and confidentiality agreements.

What to include in a contract:

• Work responsibilities and deadlines.
• Payment structure and milestones.
• Confidentiality (NDA) and data protection terms.
• A clause prohibiting subcontracting work without permission.

If a virtual assistant refuses to sign an agreement, this is a major red flag.

What to Do If You Suspect a Scam

Even with careful vetting, businesses may still encounter fraudulent virtual assistants. If you notice warning signs, acting quickly can minimize damage and prevent further losses. Here’s what to do if you suspect a scam.

1. Stop Communication and Payments Immediately

If you believe a virtual assistant is fraudulent, stop all communication and freeze any pending payments before further financial loss occurs.

Actions to take:

• Pause payments through PayPal, Wise, or other payment processors.
• If the assistant was hired through Upwork, Fiverr, or another freelance platform, open a dispute to stop fund transfers.
• Revoke access to any shared business accounts or confidential documents.

2. Gather Evidence

Proper documentation is essential when reporting fraud or seeking refunds.

What to collect:

• Emails, chat logs, and messages showing agreements and discussions.
• Payment receipts and invoices to track money transfers.
• Screenshots of discrepancies (e.g., plagiarized work, ghosting after payment).
• Time logs (if applicable) from tracking tools like Time Doctor or Hubstaff.

3. Report the Scam to the Hiring Platform

If the virtual assistant was hired through a freelance platform, report the incident immediately.

Where to report fraud:

• Upwork: Open a dispute in Help & Support and provide evidence.
• Fiverr: Use Resolution Center or contact Customer Support.
• Toptal: Submit a formal complaint if the assistant fails to deliver.
• Wishup: Contact customer service for dispute resolution.

Some platforms offer refund protection, but cases must be reported quickly to qualify.

4. Report the Fraud to Authorities

If a virtual assistant has stolen money, misused sensitive data, or committed identity fraud, reporting to authorities may help prevent further scams.

Where to file complaints:

• Federal Trade Commission (FTC): Report Fraud Here
• Internet Crime Complaint Center (IC3 – FBI): Submit a Cyber Fraud Report
• Better Business Bureau (BBB): File a Business Complaint

For international scams, consider reporting to Interpol or your country’s consumer protection agency.

5. Try to Recover Lost Funds

If payments were made through PayPal, Wise, Stripe, or a credit card, you may be eligible for a chargeback.

How to request a refund:

• PayPal: Open a dispute in Resolution Center within 180 days.
• Credit Cards: Contact your bank and request a chargeback for unauthorized transactions.
• Wise & Stripe: File a fraud complaint with customer support.

If you paid via cryptocurrency or bank transfer, recovering funds may be difficult, but reporting to law enforcement increases the chance of tracking fraudsters.

6. Strengthen Security to Prevent Future Scams

Once fraud has occurred, take steps to prevent future issues.

Security measures to implement:

• Use password managers like LastPass or 1Password to restrict access.
• Set clear contract terms before hiring a virtual assistant.
• Work through verified platforms with escrow payments and built-in protection.

By acting fast and reporting fraud, businesses can protect themselves and help prevent others from falling victim to similar scams.

Where to Report Virtual Assistant Scams?

If a virtual assistant scam has already happened, taking action quickly can help minimize further damage. Reporting fraud not only increases the chances of recovering lost funds but also helps prevent scammers from targeting others. Several organizations and platforms provide support in handling these cases.

Freelance platforms where the assistant was hired should be the first place to file a complaint. Websites like Upwork, Fiverr, and Toptal have dedicated support teams for dispute resolution. They often offer buyer protection if fraud is reported promptly, especially when payments are made through their system. Wishup also provides client protection, ensuring businesses are not left without assistance in such cases.

If the scam involves financial loss, filing a complaint with consumer protection agencies can be helpful. The Federal Trade Commission (FTC) investigates online fraud, while the Better Business Bureau (BBB) tracks scam reports and issues warnings. More severe cases, such as identity theft or unauthorized access to sensitive data, should be reported to the Internet Crime Complaint Center (IC3 – FBI) or local law enforcement.

For those who paid through PayPal, Wise, or a credit card, contacting the payment provider might allow for a chargeback or refund. Many banks offer fraud protection if the issue is raised within a specific timeframe.

Even if lost funds cannot be recovered, reporting scams raises awareness and helps authorities track down repeat offenders. Public scam trackers like Scamwatch and BBB Scam Tracker maintain records of reported fraud, allowing other businesses to stay informed and avoid falling into the same traps.

How to Recover Lost Funds?

Recovering money lost to a virtual assistant scam depends on the payment method used and how quickly action is taken. While some cases may result in a full refund, others might require legal intervention or fraud reporting to financial institutions.

If the payment was made through PayPal, Wise, or Stripe, filing a dispute as soon as possible increases the chances of reversing the transaction. These platforms often provide buyer protection, but only if fraud is reported within their dispute window. Chargebacks through credit cards and banks are another option, especially if unauthorized transactions occurred. Most banks allow chargebacks within 60 to 120 days, but this varies based on the provider.

When dealing with bank transfers or cryptocurrency, recovering funds becomes much harder. In these cases, reporting the fraud to authorities like the Federal Trade Commission (FTC) or the Internet Crime Complaint Center (IC3 – FBI) may be the only course of action. Some financial institutions cooperate with fraud investigations and can attempt to trace transactions, but success rates vary.

If a scammer gained access to company accounts or financial data, securing all banking and online payment credentials is critical. Changing passwords and enabling two-factor authentication can prevent further losses. Businesses should also notify their bank or financial provider if any suspicious activity is detected.

Conclusion

Hiring a virtual assistant can bring great value to a business, but the risk of fraud is real. Scammers take advantage of rushed hiring decisions, presenting fake credentials, overcharging for work, or even stealing sensitive data. Businesses that recognize warning signs early and follow secure hiring practices can avoid these pitfalls and build successful working relationships.

The best way to stay protected is to hire through reputable platforms, verify credentials, use secure payment methods, and establish clear contracts. Implementing security measures, such as password managers and project tracking tools, adds another layer of protection. If a scam does occur, acting quickly – reporting fraud, disputing payments, and securing accounts – can minimize financial and operational damage.

While fraudulent virtual assistants exist, legitimate and highly skilled professionals do too. A well – planned approach ensures that businesses work with reliable and qualified assistants who contribute to growth rather than cause setbacks. Taking the right precautions makes all the difference between a smooth collaboration and a costly mistake.

Choosing a trusted platform like Wishup can help businesses find pre-vetted, experienced virtual assistants without the risks of scams. Click on the banner below to find out how Wishup can connect you with reliable professionals and ensure a safe hiring experience.