They come in like a wrecking ball. Watch out for home improvement scams!
As home renovation season ramps up across the country, experts are warning homeowners to beware of contractor scams that are increasingly targeting both urban and suburban neighborhoods.
These scams often involve fake or unlicensed contractors who solicit business through social media ads, door-to-door pitches, or online platforms like Craigslist and Facebook Marketplace. Often, these scammers show up after a natural disaster such as a tornado, derecho or hailstorm. Victims are frequently asked to pay large deposits up front — sometimes as much as 50% to 75% of the total project cost — only to have the contractor vanish or leave the job unfinished.
Scammers know homeowners are eager to repair their spaces, especially after a disaster. The offer of a quick fix at a significant discount prompts the homeowners to take a chance and hire the “cheaper option” on the spot.
According to the National Council on Aging (NCOA), 1 in 10 Americans have experienced a contractor scam with an average loss of $2,426.
“Scammers often seek out older homeowners, since they believe them to be more trusting, wealthier and more likely to have memory or cognitive problems says,” NCOA Chief Customer Officer Josh Hodges.
The most commonly reported scams include:
Roof repair scams after storms.
Driveway sealing or paving offers.
Kitchen or bathroom remodels with no follow-through.
Signs of the Scam
The Federal Trade Commission’s (FTC) website shows signs of a home improvement scam that include:
· Contractors coming to your door because they are “in the area.”
· Saying they have materials left over from a previous job and can offer you a significant discount.
· Pressuring you for an immediate decision.
· Asking you to pay for everything up front in cash to get the discount.
· Asking you to get any required permits to start the work.
How to Protect Yourself:
Get contractor recommendations from people you know and trust.
Get more than one estimate.
Search for the name of the company online and look for reviews; checking for more than one website with reviews to ensure the reviews are not fake.
Always use traceable payment methods (no cash or wire transfers).
Require a written contract with itemized pricing and deadlines.
Verify licensing through official state websites.
Confirm insurance and ask for multiple recent references.
Some homeowners have resorted to legal action, but recovery can be difficult. If a contractor is unlicensed or operating under a fake name, tracking them down can be nearly impossible. Especially if you paid them in cash. In the ever-evolving world of online scams, a sinister new tactic is making headlines—and draining bank accounts. It's called the Pig Butchering Scam, and despite its strange name, there's nothing humorous about it. Combining the emotional manipulation of romance scams with the financial trickery of crypto fraud, this scheme is leaving victims devastated both emotionally and financially.
What To Do If You Suspect a Scam:
Homeowners are encouraged to be skeptical, do their research, and report suspicious activity to the FTC, Better Business Bureau and local law enforcement.
If you’ve been a victim of this sort of scam, contact local law enforcement. Keeping the information to yourself only protects the scammer.