By Jeff Somers
Everyone can be scammed. Even if you think you’re pretty savvy about things, you can be scammed—maybe especially because you think you’re pretty savvy about things. Between our desire to have goods and services and our determination to get a good deal on those goods and services, we can all be vulnerable to a good scam.
Owning a house, as you may have noticed, is expensive, and thus homeowners can be extra vulnerable to scammers. And hiring contractors can be a fraught, stressful process. You might think that would make it harder to fall for contractor scams since we usually enter into these relationships with our bullshit antennae already up, but people fall for contractor scams all the time—about 10% of Americans have been hit by a contractor scam, losing an average of $2,426 in the process. While you might think scammers are obvious and easy to avoid, that’s probably only because you haven’t been scammed yet.
Driveway destruction
The scam: You hire someone to repave your driveway—maybe they showed up at your door offering a great quote, or maybe you found them through internet research. Either way, they get to work and tear up your existing driveway. Then, once your driveway resembles the surface of the Moon, they announce the cost will be twice as much as the original quote—or more. If they’re being polite they’ll offer some excuse as to why the price increased, but either way, you’re in the same spot: You either pay up or you have no driveway.
Why it’s easy to fall for: It’s just so … brazen. Holding your house for ransom is often totally unexpected, but they know that once your driveway is ruined your only alternative is to hire a second contractor for even more money.
More materials, more problems
The scam: A contractor shows up at your door and tells you they’re working in your area, and they have materials left over. To get rid of them and make their time in your neighborhood more profitable, they’d be happy to do some work at your house for a big discount (since they already have the necessary materials). They negotiate a perfectly reasonable deposit and disappear—or spend a day doing some low-quality work and leave you with a mess.
Why it’s easy to fall for: Like all great scams, it combines a perfectly reasonable scenario with your desire to save a buck. Plus, having a friendly person at your door puts you at ease because you feel like you’ve made a connection.
The “urgent” deal
The scam: A contractor offers you a terrific deal on a project, but only if you sign a contract and put down a deposit immediately. Once you do, they walk away and never return.
Why it’s easy to fall for: Time pressure is a common psychological trick used by scammers. And it’s common because it works—it triggers a primitive reaction in our brain that drives us to make decisions we normally wouldn’t make. This is one reason why people often have a sense of disbelief that they fell for a scam like this—once the time pressure is removed, we think rationally again.
Straight-up insurance fraud
The scam: You tell a contractor you can’t afford a project, but they have a helpful idea: insurance. They tell you that they will get your insurer to cover the project; just let them handle it. One of two things happens next: Your contractor literally commits insurance fraud in your name by inventing a covered event, or they file a claim and take payment from the insurance company—but never actually do the work.
Why it’s easy to fall for Contractor scammers always approach as friends who are just trying to help us out, and it’s not uncommon for legitimate contractors to deal with insurance companies on behalf of homeowners. It’s always a good idea to be in on any communications between your contractor and your insurer and to double-check any claims a contractor makes about what’s covered.
My friend the lender
The scam: We’ve all had that moment when a contractor gives us a quote and our souls briefly leave our body in shock—but this contractor has a solution. They have a lender they work with frequently who will offer a great rate to finance the project, and the contractor will offer a discount if you use them. The contract you sign with the “lender” actually takes out a home equity loan on the house—and the contractor vanishes.
Why it’s easy to fall for: Financing home repair and improvement projects is pretty common—but everyone dreads the trouble and paperwork. When a contractor makes it easy for us, we’re grateful, and might not do the due diligence we should.
Related Articles
How a Cash Advance on a Credit Card Works (and Why You Should Avoid Them)
Don’t Miss These June Tax Deadlines
When to Withhold Payment From Your Contractor
How to Avoid Pump Switching Scams at the Gas Station
Disclaimer
Artificial Intelligence Disclosure & Legal Disclaimer
AI Content Policy.
To provide our readers with timely and comprehensive coverage, South Florida Reporter uses artificial intelligence (AI) to assist in producing certain articles and visual content.
Articles: AI may be used to assist in research, structural drafting, or data analysis. All AI-assisted text is reviewed and edited by our team to ensure accuracy and adherence to our editorial standards.
Images: Any imagery generated or significantly altered by AI is clearly marked with a disclaimer or watermark to distinguish it from traditional photography or editorial illustrations.
General Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service. In no event shall South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service.
The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice. The Company does not warrant that the Service is free of viruses or other harmful components.
