Home Improvement & Contractor Scams

Hey there, Scam Wise readers! 🏠🔨 Ready to talk about scams that literally hit close to home? Let’s talk about home improvement and contractor scams. These fraudsters may knock on your door or happen upon you after a storm, offering to fix your roof, pave your driveway, or remodel your kitchen at a price that’s almost too good to be true. Often, they’re targeting older homeowners, but anyone can be caught off guard when someone shows up with an urgent repair claim. Let’s lay the foundation on how these scams work and how to nail them shut before they nail you .

Scam Prevention Tips for Home Improvement

• Never pay in full upfront: A huge red flag is a contractor asking for all (or a large chunk) of the payment before starting work . Reputable contractors might ask for a reasonable down payment (often 10-30%, or per state law) and then incremental payments as work progresses. Scammers want as much as possible upfront then often disappear or do shoddy work. Insist on a payment schedule tied to milestones (e.g., X after materials delivered, Y after inspection passes, final only when completely satisfied).
• Demand a written contract: Legit contractors will happily sign a detailed contract specifying the scope of work, materials, timeline, cost, and warranties/guarantees . If someone just shakes on it or dodges putting things in writing, that’s dangerous. A contract protects both parties. Scammers avoid paper trails. Also, ensure any promises (like “we’ll cover any damage” or “comes with a 5-year warranty”) are in that document.
• Check licensing and references: Most states require contractors (especially for plumbing, electrical, roofing, etc.) to be licensed and insured. Ask for their license number and verify it with your state or municipal licensing board. Ensure that the company is insured so if a worker is injured during work they are covered. Also ask for references of recent clients and call them. A common scam is traveling contractors with no license who give fake references or none at all. And run if they say “Don’t bother with permits, you don’t need ’em”. Doing work without required permits is illegal, dangerous, and often a sign of a fly-by-nighter.
• Beware “leftover materials” and high-pressure pitches: One scam is a guy shows up saying, “We just did a job nearby and have leftover asphalt/paint/shingles, so we can offer you a big discount to use them today.” They pressure you to act now. Good contractors don’t randomly roam neighborhoods selling leftovers like a roving food truck. That “deal” likely means either subpar materials or they jack up costs mid-way. Similarly, if someone knocks and points out “urgent” repairs (like “Your chimney’s about to fall!”) that you never noticed, don’t panic. Get a second opinion from a trusted local pro. Scammers create or exaggerate problems to hook you.
• Don’t let strangers inside without vetting: It’s sad to say, but some “contractors” are actually casing your home for theft or worse. If an unexpected repair person comes, you can talk outside. Or ask for ID, company info, and say you’ll call to schedule later (giving you time to verify). Don’t be tricked by official-sounding names like “City Water Inspection” without proof – imposters often use that to get in. Real utility or city inspectors usually schedule or have uniformed teams, and you can always call the utility to confirm if they sent someone.

Real-Life Scam Example

A classic case: After a severe hailstorm in the Midwest, “storm chaser” contractors flooded the area. One elderly couple, the Johnsons, had a man knock on their door claiming to be with “Universal Roofing Solutions.” He’d noticed their roof was damaged (lots of jargon about shingles and hail divots) and offered to work with their insurance to get it fixed cheap. The Johnsons, stressed about the damage, agreed. He asked for a $5,000 deposit to “buy materials.” They paid. He and his crew actually did a little work – they tore off some old shingles – then vanished, leaving the roof exposed and the job half-done. The Johnsons not only lost $5k, but also incurred more damage from a subsequent rain because of the incomplete roof. Unfortunately, door-to-door roofing scams like this spiked after storms. Some fly-by-night contractors take deposits and skip town, or use substandard materials and aren’t around when leaks show up months later.

Another example: a paving scam . A man offers to re-pave a woman’s driveway at a steep discount, saying he has “leftover asphalt from another job.” He quotes $2,000 verbally. She agrees, but no contract. They do half the driveway, then claim they need more material and the price will actually be $4,000. When she protests, they intimidate her (a couple of burly guys) saying the work’s already done beyond the initial payment and she better pay the rest. She ends up writing a check just to get them off her property. They did a lousy job that started cracking within weeks. This is common: scammers low-ball to get started, then essentially extort more by mid-project, sometimes even driving the victim to the bank under duress. Law enforcement calls these home repair extortion scams , often targeting the elderly.

One more: A big, multi-state operation was busted where scammers posed as “energy efficiency experts” offering free home inspections. They’d go in, “find” mold or HVAC issues, then scare homeowners into expensive fixes (sometimes unnecessary or dangerously done). Some victims paid tens of thousands for duct cleaning or mold remediation that was either not needed or done incorrectly (and mold came back). It was a mess – and since these scammers often change company names, they’re hard to track. Always verify credentials for specialized work like mold removal (e.g., check if they’re certified industrial hygienists or similar, which most legit ones are).

Scam Radar: What’s Trending Now?

Post-disaster scams: With climate events like hurricanes, floods, wildfires, scammers swarm after disasters. FEMA and state officials repeatedly warn folks: be extra careful with contractors after a disaster. Common grifts include tree removal, roof patching, debris cleanup at gouged prices or with advance fees then no show. People are vulnerable when their home’s wrecked. If possible, use known local contractors or ones recommended by your insurance. And don’t pay full costs upfront just because you want a quick fix. It’s better to wait a bit for a verified pro than lose money to a scammer and still have no fix.

Solar panel scams: We touched on green energy earlier (Issue 2), but it overlaps with home improvement. Many homeowners report being misled by door-to-door solar salespeople who promise huge savings or “government programs” that cover costs. Some unscrupulous companies, not outright scammers but shady, corner folks into contracts and liens they didn’t understand. Treat solar installs like any big renovation: multiple quotes, research the company’s reviews, and read the fine print.

Online home service platforms: While sites like HomeAdvisor or Angi (Angie’s List) can help find reputable contractors, scammers can infiltrate there too by faking reviews or licensing. Still do your due diligence. Also watch out for fake websites that mimic those platforms. For example, scammers have made sites with URLs like “HomeAdvisor-secure-bids.com” prompting you to pay a deposit via credit card to an “escrow” – which is just them. Stick to communications/payment methods within verified platforms if you use them.

AARP & Advocacy Alerts: Organizations like AARP frequently warn that older adults are especially targeted by contractor fraud. This is trending not because it’s new, but because our population is aging and more seniors are homeowners. If you have older parents or neighbors, tactfully check in on any big home projects they mention. Help them vet contractors or even be present when they get bids, if possible. Many successful scammers admit they seek out seniors who live alone because they’re less likely to climb on the roof to double-check work or are too polite to say no.

On a positive note, some states are increasing penalties for contractor fraud, and consumer protection agencies actively sting these guys. For instance, several pavement scam teams got busted by state attorneys general in recent years. So reporting matters – if you or someone you know gets scammed, alert local authorities; it could save others down the line.

Extra Protection: How Aura Can Play a Role

Home improvement scams primarily involve money and property damage – not as much direct identity theft (though sometimes these scammers steal info from inside your home). Aura’s strengths (ID and credit monitoring, etc.) aren’t directly in this domain, but there are some tangential benefits:

• Financial Monitoring: If you wrote a check or made a payment to a scam contractor, and they decided to try using your bank info for other fraud (it happens), Aura could catch suspicious withdrawals or if your check routing/account got sold to other crooks. You’d then know to shut down that account.
• ID Theft Restoration: Some contractor scammers snoop around your house – maybe they snag a bank statement or ID if left around. If later your identity’s misused, Aura’s team would help fix it. Or, say they opened a credit card using info they gleaned. Aura’s credit monitoring would alert you to new inquiries/accounts.
• VPN & Device Security: If you’re researching contractors or filing complaints online, Aura’s VPN and antivirus keep your network and devices secure from any retaliatory hacking (hey, some scammers have tech-savvy crews). While that’s a long shot, it never hurts to keep your digital life locked while dealing with shady folks.
• Document security: Perhaps you scanned and emailed a copy of your driver’s license or insurance to a contractor (some legit reasons could be permit apps). If that contractor was a scammer, that info could be misused. Aura’s dark web monitoring might later find your license number floating around, prompting you to be proactive (like adding an alert on your DMV record to prevent fraudulent duplicates).
• Family Members: The peace of mind factor – if you have older parents on Aura’s family plan, you could keep an eye (with permission) on any large transactions or credit events. If Dad, for example, unexpectedly maxes out a card or pulls a loan (perhaps to pay a scam contractor), you’d get an alert and could intervene. It’s delicate, but sometimes these red flags are the first sign of a problem.

In short, while Aura doesn’t stop a man with a truck from ripping off your shingles, it does create a safety net for the financial and identity ripples that might come after. If that sounds worthwhile, have a look at Aura and see if its features suit your household’s needs.

Quick Takeaways

• Research and referrals: Don’t hire a contractor on a whim from a cold call or knock. Get recommendations from people you trust or use well-known local companies. Check BBB ratings and online reviews across multiple sites (one site’s reviews can be faked).
• Get multiple bids: Scam contractors often pressure you to sign immediately “for a great price.” Getting 2-3 quotes not only educates you on a fair price, it also often flushes out the weirdos (the scammer’s bid might be oddly low or vague compared to legit ones).
• Never cash loan checks sent in mail: A related scam: you get a check labeled as a loan for home repairs – cashing it signs you up for a high-interest loan. If you didn’t explicitly apply, shred it.
• Insurance savvy: If it’s storm damage, consult your insurance. Many insurers have approved contractor networks or at least guidance. And avoid signing over an insurance claim directly to a contractor via “assignment of benefits” unless you fully trust them – that can lead to them pocketing the money.
• Trust your gut: If something feels off – contractor is too pushy, doesn’t have local office, can’t show proof of insurance – listen to that feeling. It’s much easier to say “no, thanks” early than to get money back once it’s gone.

Our homes are our castles; let’s keep the drawbridge up for invaders in tool belts. 🏰 You’re nearly at the end of our Scam Wise journey. Our final issue is on fake delivery and package fee scams – those pesky texts and emails about packages you owe money on. Until then, stay safe and scam-wise!