Fraudulent businesses have become sophisticated, but they still leave telltale signs. Here are ten patterns worth watching for.
- Pressure to pay immediately — Urgency is a manipulation tactic.
- No verifiable address — A P.O. box or virtual office is not enough for a physical services business.
- Unlicensed contractors — Always verify licenses via your state's licensing board.
- Brand-new domain — Under 90 days old is a serious red flag.
- Mismatched registration name — The business operating as "Premium Roofing Co." is registered as an unrelated LLC.
- Pay by wire or crypto only — Untraceable payment methods protect scammers, not you.
- Unusually low prices — If the quote is 60% below competitors, ask why.
- Fake reviews — Clusters of 5-star reviews with no text, all posted within days of each other.
- Dissolved or revoked registration — Operating on an expired registration is illegal in most states.
- No contract offered — Legitimate businesses use written contracts. If they resist, walk away.
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