8 Uber and Lyft Scams Every Driver Should Know

List of Common Rideshare Scams

1. The Free Ride Scammer

One of the most frustrating Uber and Lyft scams involves passengers trying to score a free ride. After completing the trip, they might file a false complaint with the rideshare company, claiming poor service or even that the trip never happened. This scam is designed to get a refund at your expense.

How to handle it:

The best way to protect yourself is to document everything. After each trip, rate your passenger and write a brief note if anything out of the ordinary happened. If a false complaint does arise, report the passenger immediately through the app. Uber and Lyft take driver feedback seriously and will investigate complaints.

2. Overcrowding the Vehicle

Some passengers try to avoid paying for a larger vehicle by squeezing in more people than allowed. Overcrowding can lead to safety issues and might even get you a ticket, not to mention deactivation from Uber or Lyft.

What to do:

It’s crucial to enforce passenger limits for both safety and legal reasons. Politely remind passengers of the vehicle’s seating capacity and refuse to start the ride if they insist on overcrowding. Safety first, always!

3. The Destination Switch

Another common Uber and Lyft scam involves passengers requesting to change destinations mid-ride, but without updating it in the app. This is risky because passengers can later complain that you took them to the wrong location, and without app verification, it’s your word against theirs.

Tip to get ahead of this:

Always ask passengers to update the destination in the app, no matter how small the change might seem. This protects you from false claims and ensures you’re paid correctly for the trip.

4. Cash Offerings

Sometimes, passengers will offer cash for a ride. While it might seem tempting, this is a dangerous move. Accepting cash rides goes against Uber and Lyft’s terms of service and leaves you unprotected by the company’s insurance policies in case of an accident.

How to refuse cash:

If a passenger insists, kindly explain that payments must be made through the app. Besides the legal risks, anyone who refuses to pay with a card may be looking to scam you.

5. The Fake Bill Trick

This scam involves passengers paying with fake hundred-dollar bills in hopes that drivers won’t notice. Fake currency is a growing issue, and once you accept it, it’s nearly impossible to get reimbursed.

How to spot it:

Become familiar with recognizing counterfeit money, but your safest bet is to avoid cash transactions altogether. Just say no to cash rides, and you won’t have to worry about this scam.

6. Recruiting Rideshare Drivers

Though not exactly a scam, some passengers may try to recruit drivers from one platform to another. This is more common with Lyft recruiting Uber drivers, offering promises of bonuses and better conditions.

How to respond:

It’s up to you whether to entertain these conversations, but don’t feel pressured into making any changes on the spot. Research the offers thoroughly before making any moves.

7. Random Passengers

One of the simplest, yet most concerning, Uber and Lyft scams is when passengers try to hop into the wrong vehicle. This can be a mistake, but sometimes people do it intentionally, hoping to get a free ride or confuse the driver.

Stay safe:

Always verify passengers before letting them in. Ask for their name, and keep your doors locked until you’ve confirmed it. This simple habit can prevent a lot of confusion and ensure you’re picking up the right person.

8. The Canceler

The Canceler scam happens when passengers cancel the ride mid-trip. They might do this to try and get a free ride, assuming that drivers won’t notice until they’ve already covered a significant distance. Without an active ride in the system, drivers won’t get paid for the trip.

How to manage it:

Always keep your GPS on and ensure that all trip notifications are audible. If a passenger cancels mid-trip, politely ask them to exit the vehicle and explain that the ride is no longer valid. In more extreme cases, if the passenger refuses to exit, don’t hesitate to involve law enforcement.

Making Up for Losses Through Smart Strategies

Even if you stay vigilant, sometimes Uber and Lyft scams are unavoidable. If you’ve ever fallen victim to one, you know how frustrating it is to lose money that you worked hard for. But all hope isn’t lost—you can take steps to make up for those losses by boosting your earnings and optimizing your expenses.

Here are some actionable tips to help you increase your income and reduce costs:

Be Mindful of Your Passengers

Not all earnings come from Uber or Lyft fares; tips can make a big difference in your bottom line. A little effort goes a long way. For example, passengers appreciate politeness, light conversation, and help with their luggage. Furthermore, maintaining a clean car, using an air freshener, or offering small amenities like bottled water can create a positive impression, leading to bigger tips and higher ratings. These small investments in the rider’s experience can often help soften the blow if you’ve lost money due to a scam.

Track Fuel Efficiency

Fuel costs are one of the biggest expenses for rideshare drivers. Tracking how much fuel you’re using per shift helps you identify areas for improvement. If your car doesn’t automatically track fuel efficiency, it’s simple to do manually: fill up your tank, drive, then refuel and divide the number of gallons by the miles driven. This lets you know how efficiently your vehicle is running, which can help you make informed decisions to save on gas over time.

Deduct Car Expenses from Your Taxes

Another way to recover from losses is through mileage reimbursement, which can significantly reduce your tax bill. But here’s the catch: the rides tracked by Uber and Lyft aren’t enough to fully capture all your deductible miles. To maximize your tax deductions, you need to track every eligible mile, including trips for maintenance, refueling, or even mid-trip cancellations.

Tracking your miles is key to ensuring you’re deducting every mile you’re entitled to. It’s important to use a system that captures every business-related trip—not just the rides Uber and Lyft apps record.

Why Automatic Mileage Tracking is a Game-Changer

Saving Time

Manual mileage tracking is a hassle, especially when you’re constantly on the go, accepting ride requests with just seconds to spare. You don’t want to miss out on rides because you’re busy logging miles. That’s where an automatic mileage tracker like MileageWise comes in. It records your trips, so you can focus on driving while the app handles your mileage logs. Plus, MileageWise offers features like automatic mileage log creation and customizable tracking—saving you time and effort.

Maximizing Savings

Automatic tracking ensures that you’re logging every eligible trip, which can result in bigger deductions during tax season. It also captures all the necessary details to stay compliant with IRS requirements. By using a mileage tracker, you’ll maximize your tax savings and ensure no eligible mile is missed.

Conclusion

While Uber and Lyft scams can be a frustrating part of the job, there are ways to protect your income and make up for losses. By improving your passenger interactions, staying mindful of fuel efficiency, and utilizing automatic mileage tracking, you can boost your earnings and save on taxes. With tools like MileageWise, you can streamline your driving operations, allowing you to focus on your gig.