Online employer requires personal information

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Hi everyone, I have been away for a while as I am trying out different ways on how to earn online. At the moment I am with oDesk and got my first job. I was really glad and surprised when I got it but after I got to the 2nd assignment I was asked to open a gmail and yahoo account giving my password details as well as my age, adress and so on to the employer. I am going to end the contract as I wouldnt give my details away that easily but I am wondering how can a site such as oDesk allow such members to exist? Why did nobody reported this issue before?