Payment fraud in the gig economy

January 31, 2023
Payment fraud refers to instances where gig workers or businesses are not paid for their services or are paid with fraudulent payment methods.

Payment fraud in the gig economy

The gig economy has seen a surge in popularity in the past few years, with many people relying on it as their primary or secondary source of income. Remote work has become more prevalent due to technological advancements, leading to a rise in freelance jobs and the expansion of the gig economy. However, this increase in gig economy activity has also led to a rise in scams, such as payment fraud.

Payment fraud refers to instances where gig workers or businesses are not paid for their services or are paid with fraudulent payment methods. This can take several forms such as:

  1. ,Non-payment: Clients or employers may fail to pay gig workers or businesses after services have been rendered, either intentionally or unintentionally.
  2. Chargebacks: Clients or employers may dispute a charge with their bank or credit card company after paying for services, resulting in the gig worker or business not being paid for their services.
  3. Payment with stolen credit card: Clients or employers may pay for services using a stolen credit card, which can result in the gig worker or business not being paid or having to pay back the charge once it's discovered.
  4. Phishing Schemes: Scammers may impersonate clients or employers and ask for sensitive information such as bank account numbers or credit card information, using it to make unauthorized transactions.

How to prevent payment fraud?

Payment fraud is a growing concern in the gig economy, as it can have severe consequences for both workers and customers. Gig workers and businesses can take several steps to prevent payment fraud:

  • Use secure payment methods: Use a payment processor that has fraud detection and prevention features. Avoid accepting payments through wire transfers or other methods that are difficult to trace.
  • Verify and re-authenticate the identity of clients and employers: Confirm the identity of clients and employers by asking for personal information and validating it. This can be done by putting in place a strong customer authentication solution.
  • Keep accurate records of transactions: Keep detailed records of all transactions, including the date, amount, and client or employer information. This can help you to detect fraudulent activity and provide evidence if you need to file a complaint. 
  • Be aware of red flags: Be vigilant for red flags that may indicate fraud, such as clients or employers requesting a large number of services for a low price, clients or employers who are unwilling to provide personal information, or clients or employers who insist on paying in cash.
  • Report suspicious activity: If you suspect fraud, report it immediately to the relevant authorities.

With the increasing number of fraudulent activities and scams in the gig economy, it's essential to have a secure and reliable method for verifying the identity of clients and employers. A strong customer authentication solution can provide an extra layer of security by using advanced authentication methods to confirm the identity of clients and employers before transactions take place. This not only helps to prevent fraud but also gives confidence to the gig workers and businesses that they are working with legitimate clients and employers. 

Ready to take your customer authentication to the next level?

When you work with ShareID, you can provide your gig workers and customers with a strong authentication process tied to their government-issued IDs in real time and with a simple smile. With its patented technology, ShareID can validate a person's liveness and all their shared personal data, ensuring the person behind the screen is the right one anytime a transaction with the platform happens. Request a demo today and see how ShareID can help grow your top line.

Payment fraud in the gig economy

RéglementationExigence cléRéponse ShareIDRésultat pour vous
DSP2 – Directive (UE) 2015/2366 + RTS SCA (UE 2018/389) Source DSP2 : Directive (UE) 2015/2366Authentification forte du client (SCA) obligatoire (art. 97) avec lien dynamique (art. 5 RTS) et indépendance des facteurs (art. 9 RTS).- Full IDV : authentification du document d’identité + biométrie (détection du vivant) - MFA 3.0: Ré-authentification forte basée sur l’identité Full IDV + MFA 3.0Conformité immédiate SCA ; fluidité pour l’utilisateur, sécurité renforcée.
DSP3 / Payment Services Regulation (projet) Source RTS SCA : Règlement délégué (UE) 2018/389 Entrée en vigueur prévue en 2025/ 2026.Articles 85–89 : consolidation de la SCA, règles d’accessibilité, clarification des exemptions.- Full IDV : authentification du document d’identité + biométrie (détection du vivant) - MFA 3.0: Ré-authentification forte basée sur l’identité Solution déjà alignée sur les parcours biométriques & exemptions. MFA 3.0Anticipez les évolutions futures sans refonte lourde.
DORA – Règlement (UE) 2022/2554 Source DORA : Règlement (UE) 2022/2554Authentification forte pour protéger les systèmes et les données critiques (art. 9(4)(d)), encadrement strict des prestataires de Technologie de l’information et de la communication (art. 28–30).- MFA 3.0: Ré-authentification forte basée sur l’identité. Intégrable via SDK/API (iOS, Android, Web), traçabilité complète. MFA 3.0Sécurisation des systèmes d’informations critiques, conformité démontrable aux superviseurs.
eIDAS (UE 910/2014) + implémentation 2015/1502 Source eIDAS (2014) : Règlement (UE) 910/2014Niveaux simple / substantiel / élevé ; multi-facteurs encouragés pour les niveaux substantiel et élevé.Authentification des documents + biométrie (détection du vivant). Full IDVValeur probante proche d’un contrôle présentiel.
eIDAS 2 – Règlement (UE) 2024/1183 Source eIDAS 2 : Règlement (UE) 2024/1183Les EUDI Wallets devront fonctionner à un niveau d’assurance élevé, avec partage sélectif d’attributs.- MFA 3.0: Ré-authentification forte basée sur l’identité Intégrable via SDK/API (iOS, Android, Web), traçabilité complète. MFA 3.0Intégration fluide des futurs portefeuilles européens.
MiCA – Règlement (UE) 2023/1114 Source MiCA : Règlement (UE) 2023/1114Les prestataires de services sur crypto-actifs doivent appliquer les obligations KYC/AML (Directive 2015/849) ; art. 76 impose CDD (renforcement de la vigilance client) renforcé pour certaines plateformes.Authentification des documents + biométrie (détection du vivant) = anti-deepfake et anti-spoofing. Doc IDV ou Full IDVRéduction drastique des fraudes, conformité crypto-AML.
ETSI TS 119 461 (V2.1.1, 2025) Source ETSI TS 119 461 : Norme européenneVérification d’identité à distance : 5 étapes (initiation → collecte → validation → liaison → résultat). Liveness et anti-spoofing obligatoires pour les parcours à distance.- Enrôlement complet : authentification des documents + Biométrie (détection du vivant) - Algorithmes entraînés sur une base de données de vrais et de faux documents de la Gendarmerie Nationale. Full IDVEnrôlement KYC robuste, valeur probante reconnue.
FIDA – Financial Data Access (projet) Source FIDA (proposition) : Commission européenneConsentement explicite, traçable et révocable via des tableaux de bord.- MFA 3.0: Authentification forte basée sur l’identité au moment du consentement + réauthentification fluide avec un simple sourire. MFA 3.0Accès aux données conforme et centré utilisateur.
RGPD – Règlement (UE) 2016/679 Source RGPD : Règlement (UE) 2016/679Durée de maintien de données chez ShareID paramétrable. Aucun stockage biométrique : hachages homomorphiques brevetés , ISO 27001.Image de marque, risque réglementairejuridique réduit, confiance accrue des régulateurs et clients.



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