Feb 18, 2026  ·  6 min read

How to Avoid Contractor Scams: What Every Homeowner Should Know

Contractor fraud costs homeowners billions every year. Most victims did their research — they checked reviews, asked for references, got multiple quotes. Here's what actually works.

01

Ask for a license number and verify it with your state licensing board — not just the contractor's word.

02

Never pay more than 10–20% upfront. Legitimate contractors don't need full payment before starting work.

03

Get everything in writing: scope, materials, timeline, payment schedule, and what happens if something goes wrong.

04

References matter less than you think: contractors choose their own references. IBT certification means someone independent contacted their clients.

05

Demand a physical address: post-office boxes and virtual offices are red flags for contractors who may disappear after taking your deposit.

06

Look for IBT certification: an IBT-certified contractor has had their actual client base independently surveyed. That's a standard no fake reviewer can fake.

Looking for businesses you can trust?

The IBT directory lists only businesses that have been independently certified through our rigorous acceptance sampling process.

Browse the Certified Directory