This emerging side hustle scam cuts Aussie woman’s income by $200 a week
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The allure of a side hustle is undeniable, especially in today's economic climate, where the cost of living seems to be perpetually on the rise.
For many Australians, including those over 60, the idea of supplementing retirement funds or simply staying active in the workforce is appealing.
However, as the story of one Aussie woman illustrates, the side hustle market is not without its risks.
Like many enterprising Australians, Rachael Donnellan turned her passion for fashion into a profitable venture by renting out clothes from her wardrobe since 2016.
She’s one of many Australians who have turned to side hustles to supplement their income amid the ongoing cost of living crisis.
According to research by Fiverr, nearly 70 per cent of employed Australians are either considering or already involved in side hustles—and this trend isn't limited to just young people.
Nearly 45 per cent of Australians aged 55 and over are actively engaged in side hustles, compared to 81 per cent of those aged 16 to 24.
A survey by Small Business Loans Australia (SBLA) also revealed that 55 per cent of Australians plan to start a side hustle or small business within the next five years, with many aiming to boost their income.
Donnellan’s co-owned business, Hire Melbourne, which offers over 150 outfits for hire from $25 to $200, became a significant source of income for her.
But when a scammer posing as a customer stole a $2000 vintage Herve Leger gown, Rachael's weekly income took a $200 hit.
‘The loss of income was the biggest hit…because it was renting most weeks at $200 a week,’ she lamented.
Similar to many dress hire businesses, Donnellan connects with customers and arranges outfit rentals through social media.
The customer who stole from her initially made contact via Instagram.
They supplied an ID, phone number, and paid a $200 hire fee along with a $150 security bond to secure the dress, which Donnellan then mailed to the address provided.
Donnellan became suspicious when the customer ceased communication, and the dress was never returned.
‘The person provided a fake number so when I've gone to contact them, it's not a valid number,’ she shared.
Donnellan attempted to locate the customer, only to discover that the ID provided had been stolen. The rightful owner of the ID had already notified the police.
She had to cancel weeks of bookings for the Herve Leger gown, resulting in a loss of hundreds of dollars in income.
Donnellan decided not to report the stolen dress to the police, a choice fellow dress rental business owner Nicole Shiraz understands, as most lenders rarely recover their items.
NSW-based Shiraz had a $1,600 dress stolen from her earlier this year and immediately reported it to the police but was unable to recover the item.
The customer who stole the dress reached out to her via social media and paid a $340 hire fee and bond in advance.
‘I haven't had anything stolen in the last year or so, I thought, “OK, this is fine.” We take ID as well…you're so used to trusting everyone,’ Shiraz recounted.
Similar to Donnellan, Shiraz realised she had been scammed when the customer failed to return the dress and stopped responding to messages.
The customer also deleted their social media account and removed the ID photo from the chat history.
She then contacted police in both NSW and WA, where the customer claimed to be based. But despite their efforts, the police were unable to recover the dress.
Shiraz had to accept the loss, cancel months of bookings, and forfeit thousands of dollars in income.
Both she and Donnellan say these scams, where customers use fake details to hire items and then refuse to return them, have become more frequent in recent years.
This prompted Shiraz to create Air Closet, an app that enables Australians to lend and hire clothes, offering built-in insurance of up to $5000 for theft or damage.
‘I'm trying to instil that faith in the community that we can have a recycled, shared fashion economy, and we can share our wardrobe in a safe environment,’ she said.
Dress hire businesses, popular as side hustles, provide Australians with a more affordable and sustainable way to access the clothes they desire.
According to The Australia Institute, Aussies contribute around 300,000 tonnes of fashion waste annually, and hiring clothes could help reduce that number.
However, Donnellan is concerned that scammers will continue exploiting lenders. She and her business partner are now more cautious, collecting additional details from customers to report any future thefts to the police, as another loss could significantly impact their income.
Australians running side hustles can protect themselves by verifying customer identities, reviewing profiles for inconsistencies, and using trusted platforms like PayPal for transactions.
NSW Police and the Australian Competition & Consumer Commission (ACCC) declined to comment.
As dress hire scams continue to target small business owners, many Australians are exploring other ways to make extra cash from their wardrobes.
With more people looking for sustainable and profitable side hustles, a growing trend has emerged where mums are turning their closets into cash cows.
Whether it's through selling or renting, these creative methods are offering a lucrative alternative for those looking to boost their income while clearing out their closets.
We'd love to hear from you, our Seniors Discount Club members. Have you started a side hustle in retirement? What has your experience been like? Share your stories and tips in the comments below to help others navigate the side hustle economy safely.
For many Australians, including those over 60, the idea of supplementing retirement funds or simply staying active in the workforce is appealing.
However, as the story of one Aussie woman illustrates, the side hustle market is not without its risks.
Like many enterprising Australians, Rachael Donnellan turned her passion for fashion into a profitable venture by renting out clothes from her wardrobe since 2016.
She’s one of many Australians who have turned to side hustles to supplement their income amid the ongoing cost of living crisis.
According to research by Fiverr, nearly 70 per cent of employed Australians are either considering or already involved in side hustles—and this trend isn't limited to just young people.
Some Australians consider or engage in side hustles to boost their income, with strong interest across all age groups. Credit: Rachael Donnellan / Facebook
Nearly 45 per cent of Australians aged 55 and over are actively engaged in side hustles, compared to 81 per cent of those aged 16 to 24.
A survey by Small Business Loans Australia (SBLA) also revealed that 55 per cent of Australians plan to start a side hustle or small business within the next five years, with many aiming to boost their income.
Donnellan’s co-owned business, Hire Melbourne, which offers over 150 outfits for hire from $25 to $200, became a significant source of income for her.
But when a scammer posing as a customer stole a $2000 vintage Herve Leger gown, Rachael's weekly income took a $200 hit.
‘The loss of income was the biggest hit…because it was renting most weeks at $200 a week,’ she lamented.
Similar to many dress hire businesses, Donnellan connects with customers and arranges outfit rentals through social media.
The customer who stole from her initially made contact via Instagram.
They supplied an ID, phone number, and paid a $200 hire fee along with a $150 security bond to secure the dress, which Donnellan then mailed to the address provided.
Donnellan became suspicious when the customer ceased communication, and the dress was never returned.
‘The person provided a fake number so when I've gone to contact them, it's not a valid number,’ she shared.
Donnellan attempted to locate the customer, only to discover that the ID provided had been stolen. The rightful owner of the ID had already notified the police.
She had to cancel weeks of bookings for the Herve Leger gown, resulting in a loss of hundreds of dollars in income.
Donnellan decided not to report the stolen dress to the police, a choice fellow dress rental business owner Nicole Shiraz understands, as most lenders rarely recover their items.
NSW-based Shiraz had a $1,600 dress stolen from her earlier this year and immediately reported it to the police but was unable to recover the item.
The customer who stole the dress reached out to her via social media and paid a $340 hire fee and bond in advance.
‘I haven't had anything stolen in the last year or so, I thought, “OK, this is fine.” We take ID as well…you're so used to trusting everyone,’ Shiraz recounted.
Similar to Donnellan, Shiraz realised she had been scammed when the customer failed to return the dress and stopped responding to messages.
The customer also deleted their social media account and removed the ID photo from the chat history.
She then contacted police in both NSW and WA, where the customer claimed to be based. But despite their efforts, the police were unable to recover the dress.
Shiraz had to accept the loss, cancel months of bookings, and forfeit thousands of dollars in income.
Both she and Donnellan say these scams, where customers use fake details to hire items and then refuse to return them, have become more frequent in recent years.
This prompted Shiraz to create Air Closet, an app that enables Australians to lend and hire clothes, offering built-in insurance of up to $5000 for theft or damage.
‘I'm trying to instil that faith in the community that we can have a recycled, shared fashion economy, and we can share our wardrobe in a safe environment,’ she said.
Dress hire businesses, popular as side hustles, provide Australians with a more affordable and sustainable way to access the clothes they desire.
According to The Australia Institute, Aussies contribute around 300,000 tonnes of fashion waste annually, and hiring clothes could help reduce that number.
However, Donnellan is concerned that scammers will continue exploiting lenders. She and her business partner are now more cautious, collecting additional details from customers to report any future thefts to the police, as another loss could significantly impact their income.
Australians running side hustles can protect themselves by verifying customer identities, reviewing profiles for inconsistencies, and using trusted platforms like PayPal for transactions.
NSW Police and the Australian Competition & Consumer Commission (ACCC) declined to comment.
As dress hire scams continue to target small business owners, many Australians are exploring other ways to make extra cash from their wardrobes.
With more people looking for sustainable and profitable side hustles, a growing trend has emerged where mums are turning their closets into cash cows.
Whether it's through selling or renting, these creative methods are offering a lucrative alternative for those looking to boost their income while clearing out their closets.
