10 Signs a Business Is Running a Scam

Fraudulent businesses have become sophisticated, but they still leave telltale signs. Here are ten patterns worth watching for.

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