How I Learned to Spot Shady Companies (The Hard Way)

The first time I got scammed at work, I told myself, “This will never happen again.”
The second time, I almost got scammed, but this time, I stood my ground.

Bagging your first job is exhilarating. Especially when it’s a role you genuinely want, in an industry you’re passionate about. You imagine learning on the job, being mentored by people who have been in the industry longer than you decided you wanted to be in that role, and of course, getting paid. That excitement, however, can blind you, and shady companies know this.

I tell people this every chance I get: if you’re offered a job, there must be a contract.
If an employer doesn’t initiate one, that alone is a red flag.

Now, let’s be fair. If it’s a very early-stage startup, maybe the CEO is still figuring things out. But if a company has existed for a while and still avoids contracts? That’s not “startup chaos”, that’s sketchy.

Why Contracts Matter More Than You Think

A contract is a legally binding agreement between two parties that clearly states expectations, responsibilities, and compensation. Once signed, neither party should violate it unless both explicitly agree to a change. Anything else is exploitation, plain and simple.

If you do manage to convince a company to send a contract:

• Ensure it comes from the company’s official email or domain

• Read every line (yes, even the boring parts)

• Ask questions if something feels vague

I’m passionate about this topic because I learned these lessons the hard way.

My First Scam: The Internship That Never Paid

My first real exposure to the workplace was during my six-month mandatory internship for school. I was eager, fresh, and excited to break into cybersecurity, a field I’m still deeply passionate about today.

I found an IT firm and reached out to the CEO on LinkedIn. We interviewed, he agreed to take me on, and he mentioned the role would be paid. He even disclosed the amount. I was thrilled. A remote role? Even better.

He sent me an acceptance letter to submit to my school, confirming my internship from January to June 2023. One thing, though, it didn’t mention payment. Some of my coursemates’ letters did, others didn’t, so I brushed it off.

Red flag #1 ignored.

Their social media presence was odd. Instead of tech-related content, they posted fruits, food, and motivational quotes.

Red flag #2 ignored.

Days before the internship was meant to start, I hadn’t heard anything. I emailed. I called. I messaged the CEO. Silence. Eventually, he replied and sent an onboarding email shortly after.

Red flag #3 ignored.

I wasn’t asked for any personal or payment details. While money wasn’t my primary motivation, he had promised payment. When I asked after the first month, he said I’d be paid at the end of the six months.

I later discovered interns before me were never paid. Still, I stayed. I told myself I was learning.

At the end of my internship, we met, never at the office, always at the same fast-food restaurant. When I asked about payment, he suggested we move to a secluded booth. My instincts screamed. He promised payment the following month.

It never came.

That was the moment I decided: no contract, no work. Promises without proof are just hearsay.

The Second Time: How a Contract Saved Me

The second time I almost got scammed, I did one thing differently: I signed a contract.

I worked at the company for about two months. By the second month, I knew it wasn’t a good fit and communicated this to the CEO. Shortly after, he told me the leadership team had decided I should leave.

Fine, but the payment didn’t come.

At first, he claimed no one had been paid. Weeks passed. Something felt off, so I reached out to a colleague. They confirmed they’d been paid.

When I confronted the CEO, he said I’d be paid soon. Then, radio silence.

This time, I didn’t let it slide. I stood my ground (won’t go into details), and eventually, he paid me. Later, I found out this behavior was common for him: delayed salaries, reduced pay against contracts, and borrowing money from employees without repayment.

The difference between this situation and the first? I had a contract.

If I had taken it to court, it would’ve been a slam dunk. Not a “he said, she said”, but written proof.

Identifying a Shady Company

To summarize, here are some consistent red flags to watch out for:

• No contract or extreme reluctance to provide one

• Regularly violating contract terms

• No verifiable physical address, or refusal to meet there

• Constantly changing pay dates

• Little to no social media presence (or one that doesn’t match the company’s claimed scope)

• Over-reliance on NDAs to silence employees

• Bonus (half-joking, half-serious): the CEO and an employee are married (Both companies I mentioned had this dynamic, how coincidental)