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.

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