Contractor Scams to Avoid in 2026 (and How to Vet Them)

Home improvement fraud cost Americans over $500 million in 2025 alone. The FTC reports it as one of the fastest-growing fraud categories. Here's what to watch for.

The Door-Knock Scam

Fraudulent contractors show up after storms or disasters offering discounted work. They take a deposit and disappear. Always require a license number and verify it independently — never rely on a card they hand you.

How to Vet a Contractor

1. Search their business name on your state's contractor licensing database.
2. Run a ProofReports check to verify state registration and Google reviews.
3. Ask for proof of general liability and workers' compensation insurance.
4. Never pay more than 10–30% upfront.
5. Get everything in writing — scope, price, timeline, warranty.