What is a 'Contractor Scam'?

 
A contractor scam is when a person offers contracting services, often via door-to-door sales or cold-calling, but makes misleading promises, pushes predatory contracts, knowingly performs shoddy work, or simply fails to deliver on the promised services. These fake contractors will promise quick or discounted work on projects like repaving or a new fence.

Red flags:

• Door-to-door offers – watch out for individuals going door-to-door offering contracting work, especially if they claim they can give you a good deal because they have leftover materials
• Up-front payment – watch out for contractors who request payment prior to work being completed
• Cash payment – Scammers will request payment in cash so that you have no recourse to get your funds back or trace where they went
• Payment to a third-party – be wary of someone who asks you to pay a third-party for services they provide
• Lack of business history, such as a storefront or website – when hiring a contractor, look for individuals who have a physical storefront, a long-standing website, and a history of quality work. Contractors who lack these features may simply disappear without warning

The best way to avoid contractor scammers is to decline all unsolicited offers. If you would still like the service, then you can independently research contractors in your area and find one that works for you.

Let’s work together to prevent fraud

Coastal Community works around the clock to safeguard your accounts. If you suspect fraud, report it right away. Remember, learning how to recognize fraud is the first step to protecting yourself.