The Rise of Proxy Identities in Freelance Platforms: A Concern for the Global Workforce

In today’s global freelance economy, platforms like Upwork, Freelancer, and Fiverr have enabled talent across borders to work remotely for international clients. However, this openness has also created opportunities for misuse. Recently, reports have surfaced that individuals from countries like Pakistan are allegedly using proxy Indian identities to gain access to freelance work—similar to known tactics used by DPRK (North Korea) IT workers. This post explores how such operations work, why they are a growing concern, and what individuals and businesses must understand to avoid unintentional involvement.

Step-by-Step Breakdown of the Process

Step 1: Acquiring or Hiring a Proxy Identity

The individual (in this case, someone based in Pakistan) first acquires access to an Indian proxy identity. This could involve buying access to an account, hiring someone with Indian documents, or forging identification.

Step 2: Creating or Taking Over a Freelance Platform Account

Using the Indian proxy identity, the person registers on freelance platforms. This identity typically includes a legitimate-looking Indian name, address, and sometimes even tax documents (like PAN or Aadhaar card numbers).

Step 3: Setting Up Digital Payment Services

Next, digital wallets or bank accounts are created using the same proxy identity. These are used to receive international payments from freelance work. In many cases, collaborators in India or abroad help in setting up or cashing out the funds.

Step 4: Applying for and Winning Contracts

Once the accounts are ready, the individual starts bidding for freelance work. Clients, assuming the applicant is based in India, assign projects, sometimes even sharing sensitive data or providing remote access to internal systems.

Step 5: Delivering Work via Proxy

All communication is done under the guise of the proxy identity. Some clients may unknowingly communicate with the real worker (based in Pakistan) or a handler acting as a go-between.

Step 6: Payment and Account Handling

After project completion, payments are processed through the digital accounts tied to the fake identity. The actual worker receives the money via indirect transfers, often routed through multiple accounts to mask origins.

Why Is This a Concern?

Security Risks

Clients may unknowingly share confidential data or infrastructure access with unauthorized individuals in foreign jurisdictions.

Legal Exposure

Companies that hire individuals under false identities may face legal repercussions for violating export control or data privacy laws.

Platform Integrity

The misuse of freelance platforms undermines fair competition and erodes trust.

Conclusion

While the freelance economy thrives on global access and decentralization, these very features are being exploited. Using proxy identities is not just unethical but also risky for all parties involved.

Merits

• Temporary access to work opportunities despite regional restrictions.

• Access to higher-paying markets using fake geo-localized profiles.

Demerits

• Risk of permanent bans from platforms.

• Legal implications for fraud, identity theft, and money laundering.

• Loss of client trust and potential legal action if discovered.

Caution

This kind of practice is highly discouraged and may have long-term legal, ethical, and financial consequences. Do it at your own risk. Individuals engaging in such behavior may face bans, lawsuits, or even international sanctions.