Each of us wants to have enough money to meet our needs. But working more to make extra money is hard. This tends to push some people on a different and alternative path. And so they turn to the other side of income generation—illegal side hustles.
Today, you are about to find out the other side of hustling. A different side that some people do try out at some point in their lives. Why are people doing it? And why do these not-so-legal side hustles still exist?
These side hustles that we will share with you will be eye-opening. Just be aware that not all side hustles are as legal as you think they are.
22 Illegal Side Hustles – You Should Be Aware Of
Earning money is not easy, but that’s not a reason to resort to illegal work. We’re not talking about embezzlement or drugs here. There are things that we may not be aware of but are illegal, so how are we going to avoid them?
Find out here the various illegal side hustles you should be aware of:
1. WhatsApp Ponzi Scheme
The Ponzi scheme is a lucrative form of fraud and has already reached the virtual world. It lures inventors and lets them pay revenue to those who invested earlier. This is an illegal business practice that is sold as if it will make you rich faster, according to a study by the Association of Certified Fraud Examiners.
A WhatsApp Ponzi scheme starts with creating a group and then promoting it. By advertising, the group means to tempt gullible people who want to earn cash fast.
How does it work? The money collected from the group is kept by the Ponzi scheme owner for 15 to 30 days, depending on how long they can attract more investors. After that, the Ponzi scheme owner or admins take the money and flee without giving it back to the investors.
In some cases, once they already reached their quota, they would kick out the investors and hide the group.
Better invest in the right way, trade with cryptocurrencies, do real estate crowdfunding, or set up peer-to-peer lending with Mintos. You will indeed receive more in return than on the Ponzi Scheme.
2. Freelance Writing On Designated Topics
Freelance writing is a great way to earn extra income, which allows you to be creative and work at your own pace. With the world of freelancing continuing to grow, more and more people are switching to freelancing.
Freelancing allows flexibility, and it allows you to work from home or anywhere. But sadly, there are topics that you can’t write about, as they are illegal and could lead to a misunderstanding.
Example concepts are how to invade a school, rob a bank, make a bomb, or find Area 51. These are taboo topics, so avoid writing these because you may face imprisonment or suspension if you don’t.
It’s better to be aware of the fact that a serious problem may arise when we write taboo articles than to face severe complications later on.
Here are some freelancing jobs you can start with:
- How To Get Paid To Watch Netflix
- 60 Best Virtual Assistant Jobs For Beginners and Pros
- 33 Best Places To Sell Photos Online
- 19 Legit Data Entry Jobs From Home
You may also check Fiverr and Flexjobs for your freelancing and find a job that best suits your needs. Here is our Flexjobs review for more information.
Start Earning Money On FlexJobs
3. Reselling Products
Generally, it is not illegal to resell items you have purchased. It is yours to do as you choose. Even so, selling some things without meeting the requirements is illegal.
Why is it illegal? Primarily because of health and safety concerns. Other concerns would be about the branding, logos used, or buying the item illegally.
To avoid conflict in the future, it’s best to focus on things that you can make and resell (legally).
You can sell items like:
- Old textbooks
- Handmade items such as bracelets, anklets, keychains, bookmarks, and knitted products.
- Stationeries
- Furniture
- Video games and consoles
- Power tools
- Watches
- Collectibles
There’s more you can sell for money, go check out the best items to flip for profit so you can always read to earn extra cash.
If you’re having trouble selling items, especially online, here are the 20 best online flea markets to make money.
4. Dog Bakery Business
Dog bakery business has become popular nowadays, and more and more people are enticed to start a business with this. Of course, as a dog lover, this makes me happy!
Launching your own business is a great way of side hustling, and since many people are adopting dogs, the business is definitely worth starting. As far as it makes us excited for our pets, there is a reason why it is an illegal side hustle.
Baking some dog cakes, cookies, or biscuits is easy. However, when it comes to selling them, there are certain requirements you have to take and follow. If you don’t, it can result in losing your business permits or an actual fine.
To keep the business running, you will have to abide by the rules and regulations of the Food and Drug Administration in regard to the dog treats you make.
Aside from a dog bakery, you may consider pet sitting. There are many apps to consider for dog walking, and start earning some extra, especially for those who love animals.
5. Under The Table Jobs
It is impossible not to mention under-the-table jobs when talking about illegal side hustles. They are the most popular but hard to spot. What is it that you do with the money you earn from these that makes it illegal?
Specifically, any cash you earn needs to be proclaimed, which means it probably will be taxed. Whether it’s taxed actually depends on one or two things, like your total financial gains this year.
All of your earnings have to be declared to the authorities.
Whenever you take an under-the-table job, you have to record how much you earn. You can simply do it on a spreadsheet or a list on any Word document. In that way, when it is tax time, you will not have any problems with your records.
I mean, I love paying taxes, and I don’t mind giving up my extra income at all.
6. Handmade Food
This is the least illegal side hustle most people would expect. Because most people are selling food online right now!
You can find people selling homemade foods at events, flea markets, bazaars, and more. What’s unusual about that?
We don’t know how the food was prepared. Were the ingredients used fresh? Was the container used approved by the Food and Drug Administration?
People who work in the food industry are aware of the strict labeling requirements set by the Food and Drug Administration. And once you neglect to follow their guidelines, you may expect a health and safety inspection.
If you are condemned for not following the protocol, you will receive a warning letter or, worse, a fine.
So, while selling your cake at a fair won’t get you fined immediately, it’s good to know when you’re selling homemade food on a more consistent scale.
7. E-book Scam
Currently, there are two types of e-book scams. One writes fake-generated content, gathers it into a book, and then sells it on e-book pages like Amazon and Goodreads.
The second e-book scam involves a stolen book sold as an ebook without any copyrights. People will hardly notice the scam until it is reported to the website. Scammers use positive reviews from other sites to persuade potential buyers to buy the ebook.
Selling fake or plagiarized e-books is illegal and thereby punishable by law.
Instead of doing this illegal side hustle, you can try writing reviews or feedback in exchange for money, and there are a lot of sites that hire people for their opinions, like Amazon.
Aside from that, you can visit survey sites and do paid surveys like signing up in Swagbucks. Check out our full Swagbucks review and make some extra money now!
8. Selling A Certain Style Of Clothes
Selling items like clothes from overseas is not safe, and most of all, it is illegal to sell clothes that have the same design as brand clothes. Not to mention the health and safety concerns.
Reselling these products will definitely generate income. Some people have been successful in this business, and thus, more people have been encouraged to start their own too.
As it becomes easily accessible, it can also be completely done in a legal way, so you won’t be wasting money.
To prevent having problems in the future, check your products completely, from the brand to the overall appearance. Your trading may be very similar to another company, be wary of it.
Check the items you’re selling. They may have trademark prints, such as a TM symbol, all over them. If so, it’s not good for reselling if it’s a fake. That would fall under counterfeiting, which is a more complicated issue. Not every item that is similar to the popular brand is a breach of law, but it’s best to check those products first before reselling them.
9. Instagram Money Flipping
Instagram money flipping is one of the most common scams on Instagram, also sold as a way to get rich fast. Instagram is one of the biggest social media platforms and is well-known among all age groups, and recently it hit 1 billion users.
Sharing pictures and posting Instagram stories seems like a faded memory because influencers and business owners use this platform to promote their products and services. As for the outcome, the number of scams is increasing and horribly evolving.
Creating an account is easy, but identifying a fake account is difficult and not easy to distinguish from a legitimate profile. Unfortunately, they mostly don’t disclaim it on their accounts.
Money flipping on Instagram works just like any platform. The con artists create an account and then post pictures of money or shares about investment opportunities. These con artists persuade people to entrust their access to funds with a promise that it will multiply to 3 to 5 times the amount given to them.
However, your funds won’t increase. Instead, they will take your money and never contact you again. Many people have been entirely fooled on Instagram by scammers’ petty ways.
10. Facebook Scams
Facebook scams occur daily, and they involve selling products such as bags, shoes, clothes, and services. One way to attract customers is to offer free shipping. Another is to advertise using fake photos.
Once you are hooked on buying and transferring the money, they will give you an update on shipping the items. If they want to meet to exchange the item, they will set a date and time.
Once the parcel arrives, check it first. Some people sell false items or keep on giving excuses as to why they can’t meet you today.
Be sure to validate the seller first and ask for a photo for proof before shipping the items, or you can check for reviews on Facebook Marketplace.
11. Bitcoin Fraud Online
People have been opposing cryptocurrency investment for years due to crypto scams that have been going on Twitter and Facebook. There are endless complaints you can see on your newsfeed or sometimes in your favorite groups.
These scammers create a fake Twitter or Facebook account with the actual name of a guru whom people believe and trust. People would assume that it is the real one and hastily follow the fake account. A few minutes after you have done that, you will receive a notification in your inbox saying that you are offered for a limited time about a coaching program.
Aside from that, you will also receive a message on where to transfer money in Bitcoin in order to join that coaching program. This is a common example of a red flag in investments and any scams that exist.
12. Insider Trading
Making a profit through an insider’s access to confidential information on the stock exchange for their advantage is illegal.
This happens when someone buys or sells stocks from undisclosed information they got from someone’s family or friends. It gives them an advantage in the stock market, which is unfair and illegal.
When done in large quantities, this kind of progress can cause prices to go up or down, making that person earn a remarkably huge amount. Given how much money is often involved, this is labeled as an illegal side hustle.
If someone is discovered doing this, courts will penalize you and imprison you at a designated time. To prevent any of this from happening, make sure that any information that’s shared with you is public before you log in to your trading account.
13. Money Mule
A money mule is the oldest scam, dating back to before the Internet. It involves transferring money or moving money illegally on behalf of someone else.
Criminals recruit people who would become money mules and assist them in laundering their proceeds from online scams and fraud.
It works like meeting up with friends. They give you a certain amount of money via bank transfer. Your job is to forward the money to the launderer before you can get a commission.
Money mules work mostly for foreigners. This is one of the simplest illegal side hustles, but it’s best to stay out of it. A lot of people are involved, from different gangs to street lords. There’s no assurance for you and your family’s safety.
14. Sports Betting
Betting on sports has been considered illegal for years in specific states. Sports betting is surely not a wise strategy for generating extra money and definitely not a stable one. Instead, it makes sure you keep betting and betting, which causes most people to lose money over time.
The moment you lose, it frustrates you, and your frustration turns into a false hope that makes you bet on the next game, and then the cycle continues. Once you get used to the cycle, it’s hard to break from it, and you will continue to bet.
Win or lose, and it’s the same thing, and you bet on sports. Regardless of what kind of sports it is, betting on sports is illegal in some states like Texas, California, Alabama, and more. Betting is gambling, so just watch and enjoy sports without involving money.
15. Pimping Or Adult Work
Pimping, as they call it, is done by controlling prostitutes and making sure they have clients booked. This was once called night work, in which people offered different kinds of services in exchange for money.
This is an illegal side hustle, as pimping is illegal itself. An average pimp earns from $5,000 to $32,000 a week, depending on the customers.
Pimping is illegal, as prostitution also is, in all states except Nevada. Apart from that, pimpers often recruit underage girls and force them to work, which is against the law. Plus, they often provide drugs to make them dependent and often use assault or force to get their way.
If you want to get away from adult work, try building high-income skills, and for teenagers, check out the best jobs for teens online.
16. Getting Free Stuff As An Influencer
Being an influencer is a great idea for making money. Making money with Snapchat, streaming, vlogging, and more. Companies are approaching influencers to promote their products and services in return for getting free stuff or paid for.
Who doesn’t love getting free stuff? The Internal Revenue Service or IRS does not like that one, particularly if you are getting packages of free stuff from your side hustle, posting it to your social media accounts.
That’s because things like this should have been declared for tax. Being an influencer has many perks, too; just make sure you are doing it legally and properly.
17. Paid To Convince Family And Friends To Join A Program
A program like multi-level marketing (MLM) is well-known and has been ongoing for more than a decade. It went viral from there. Increasingly, people are hooked on joining and recruiting to earn money.
Facebook is a commonly used platform as it is easy to spread and simple to use. It starts with recruiting a person to join the same program and then convincing another one to join, and the cycle goes on. How do they produce money? The person who joins the program later on often is the one who gives money.
The person who recruited the other will receive the money, and the one who pays will start looking for more people, and once they join the program, they will receive the money.
It may look easy to do, but there’s no guarantee that someone will join the program every time, and thus it is not a stable side hustle. Instead, what does this program offer to people, and how can they benefit from it?
This is a pyramid scheme, and it is illegal. In addition to wasting money, you are wasting time and effort. Instead of relying on these side hustles, you can better learn how real side hustles work.
18. Selling Things You Bought Online
As we have said before, when you buy something, you have the choice of what to do with it. However, there are exceptions for specific products.
Reselling items such as tickets, software, digital media, recalled products, and prescribed medications is not allowed. Selling these products can result in serious problems, as they can have complications once sold to a different party.
If something is marked as being limited only to personal use, then you have no right to resell it.
19. Phishing
The most obvious is phishing. You can phish almost anyone for information and sell that information on the dark web. This is how identity theft is born.
Another way of sharing people’s information is called pharming. It involves using malicious websites, such as financial institutes, to gather personal data.
People who do phishing have put a lot of effort into making a website and go phishing. For example, they can create a fake e-commerce site that collects bank details. Remember what your bank keeps telling you about how they won’t ask for your details and access to your account.
20. Breeding Puppies
Breeding puppies is against the law and the dog’s right. States like California, New York, and Maryland have strong legislation that fends off dogs and cats from being sold in stores.
Having laws like this sets our hearts at ease and stops the operation of puppy mills. Luckily, more and more cities are starting to join the movement to ban puppy mills.
If you’re thinking of breeding puppies as a side hustle, we would strongly recommend leaving pets alone and looking for other side hustles that you can do.
21. Organizing Poker Nights
Gambling is illegal in many states. Therefore, organizing a poker night is also considered illegal and punishable by law. Poker is actually an enjoyable card game that you will love playing.
Playing poker requires a lot of luck and knowledge. When money is involved, you are putting the stakes high and getting competitive. Don’t go blackjacking and start counting; that’s cheating.
One example of someone who was convicted for organizing poker nights is Lawrence DiCristina; he ran games and faced a 10 year sentence in prison.
While it’s unlikely that you’ll be arrested for playing poker with your friends for a couple of nights a year, you may face some serious trouble when you’re doing it consistently and making thousands of dollars off it.
22. Homemade Soap And Bath Bombs
Soaps and bath bombs have been helping us clean and enjoy our baths, but who would have thought that handmade soaps and bath bombs are illegal side hustles? How so?
If they are not appropriately labeled, they are considered illegal. Have you seen someone sell lotions and perfumes without a label? None. It is important that the ingredients used when making these products can be seen on the packaging so that people will know what chemicals were used.
Aside from food and clothes, it is also important for products like soap, bath bombs, and other toiletries to follow the requirements set by the authorities to prevent health and safety problems.
Making Money From Side Hustles
Who wouldn’t want to have extra income? Whether we are working hard to save money, pay off debts, or save for our emergency funds, a side hustle is a key to additional earnings.
What is a side hustle? For those who are not familiar, a side hustle is another job besides your full-time work. It allows you to earn more money and will help you reach your financial goals faster.
There are many side hustles out there waiting for you, such as proofreading, blogging, online tutoring, selling stuff online, and many more.
One perk of doing a side hustle is you can work from home. Yes, you’ve read it right! With a side hustle, you have the freedom to work in your comfort zone and not dress up for work.
There are a lot of great side hustle ideas to make extra money. Plus, everybody has their own reasons to start their side hustles. No matter what your reasons are for earning more cash, a side hustle will help you get there.
The Dark Side Of Earning Income
Just the thought of making additional cash makes us happy. However, there’s a dark side to it. We are referring to the illegal way of making extra cash.
As unlikely as it may seem, many people choose this way of earning extra income. They would deem to do anything for money and don’t want to stop increasing their income.
We are not encouraging you to start an illegal side hustle just because it’s fast and easy. Nothing good comes from doing it the wrong way.
Luckily, you don’t have to go in that direction. We are always ready to help you with your financial goals. Our blog is full of articles regarding side hustles, and our objective is to introduce you to the different ways to earn money in a legal and straightforward manner.
Conclusion – Illegal Side Hustles
Side hustles are undoubtedly a perfect way to make extra income, particularly when struggling to keep it together between paychecks. You also want to enjoy a leisurely life, but how can you do that?
Definitely not doing illegal side hustle jobs, for one. No matter how tempting it can be to go down that path, stop yourself and ask, is it worth it? Despite your current situation right now, choose the one that can lead to real growth, both personal and financial.
Doing something illegal and wrong may provide you with the money you need for your plans and needs, but would you really feel right about it? Knowing fully well that what you are doing is causing harm, would it not be better to stay far away from this?
Remember that the path is never easy, and there are no shortcuts to achieving financial freedom and independence. Trust yourself and your plan, and know that there’s always a job waiting for you to find them, and you can start to look for them today!
Related Reads:
- 40+ Best Side Hustle Ideas [Make Extra Money]
- Postmates Vs. DoorDash – Best Side Hustle For Drivers?
Founder of Spark Nomad, Radical FIRE, Journalist
Expertise: Personal finance and travel content
Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Radical FIRE, a personal finance platform, and Spark Nomad, a travel platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.