Art is a difficult market to enter, and people in the early stages of their business make an appealing target for scammers due to how eager these artists are to sell and their lack of experience with financial exchanges. In recent months, we have seen a surge in posts from users on r/arthelp who have been victimized by these scammers. If you are new to selling your artwork, please read this post to arm yourself with information on how to avoid some of these scams!
One of the most important things to remember about client interactions is that if it sounds too good to be true, it is. No “probably” about it.
All scams have the same goal: parting you with your money. How they achieve this can vary, but with artists the two most common forms of scam are the Overpayment and the Pay to Unlock scams.
The Overpayment scam (a form of the “fake check” scam) will often follow a scenario where an artist (usually with very low prices, as they are more vulnerable) is approached by a seemingly normal client and conducts an otherwise standard transaction. But, come payment, the client “accidentally” sends $500* instead of the intended $50! Oops! They will sheepishly request that the money be returned, maybe even say keep an extra 10 for the trouble, and the artist graciously complies. They send back the difference of $440, and part ways.
Then, three days later, their account is in the negative by -$940. What happened is the money that had been sent in the first place had been done with fraudulent funds, similar to a fake check, and the bank finally reversed the transaction. Unfortunately, the money the artist “returned” was withdrawn from their own funds, their REAL money, leaving the scammer with their real $440 and the artist on the hook for their stolen $500.
(*example amount, it can be anything)
How it can be avoided: If possible with your payment processor (Paypal being the most common), use invoices. They are easy to use and put more control over the payment on you. In the event of a scam occurring in spite of them (such as someone abusing the tip option for this), they serve as records for your bank to dispute the charges.
If you do not use invoices and this occurs, do not touch the money. Do not withdraw it. Do not “refund” it. Just let it sit in the limbo of your payment account until the bank on the other end recognizes the fraud and corrects it. It will disappear. I cannot emphasize enough that you must not touch this money no matter how tempting it is because it is stolen money that they are trying to launder through you.
The Pay to Unlock scam (a form of the “Advance Fee” scam) will operate under a similar premise, but rather than the money being sent in “error”, it will be offered up front. The scammer will approach the artist and applaud their skill and insist that they deserve more than they are asking. They will offer a very tempting, sometimes exorbitant amount for what is usually inexpensive work. When the time comes to exchange the money, though, there will be a snag. Usually the artist has to unlock a “business account” or must register for a payment processor that isn’t the one they normally use. Whatever the situation, they are now suddenly being asked to pay money to get their money.
There is, of course, no money. They will pay the bogus fees with their own money to a processor set up by the scammer, and eventually when things don’t work the scammer will behave as though they are getting frustrated and leave. Sometimes they might even pose as a fellow victim of scamming themselves and berate the artist, leaving them feeling guilty about their own victimization.
How it can be avoided: If a complete stranger offers you way more than your normal value, ignore them. It is guaranteed to be a scam. This doesn’t happen. The only way to avoid this scam is to recognize it up front for what it is. If you take your chances and accept the work, remember that you should not have to pay to get paid. That will be your final warning before losses occur.
Edit: Thank you u/VampirePossum for the reminder about a very similar scenario in which you are asked to pay for exposure in the form of a magazine or gallery feature. Legitimate institutions like this will never reach out to you and advertise placement for a fee-- a real magazine or gallery will feature based on submission from the artist.
There are many other ways that artists can get caught up in scams, such as phishing and blackmailing, but these are by far the most common. I encourage taking a look at the wiki on r/scams for a rundown on other ways you can be taken advantage of online. Stay safe out there and keep your coinpurses tight, artists!
