Avoid Service Fraud Scams: Hire the Right Pros
Professional fraud causes U.S. businesses over $3.6 billion in losses each year, when scammers pose as contractors or consultants, your projects stall and budgets blow out
How These Schemes Unfold
- Incomplete deliverables. Scammers do minimal or poor-quality work, then demand more money “to finish.”
- Ghost contractors. They bill under fake names or generic emails, then vanish once funds clear.
- Advance-payment traps. Insist on hefty deposits or full payment up front—and disappear with your cash.
When fraudsters pose as legitimate service firms, you’re left scrambling to salvage incomplete work and cover unexpected costs.
Spotting the Warning Signs
- No detailed contract. Vague scope, missing deadlines, or no signed agreement.
- Generic communications. Emails from free domains (e.g., @gmail.com) instead of a professional address.
- Avoids site visits. They refuse in-person meetings or to inspect your facility.
- Unverifiable references. “Clients” you can’t reach or credentials that don’t check out.
Shield Your Bottom Line
- Insist on written agreements. Spell out deliverables, timelines, payment milestones, and penalties.
- Stage payments. Release funds only when each milestone is complete and inspected.
- Verify credentials & references. Check licenses, insurance, and speak directly with past clients.
- Use secure payments. Corporate cards or escrow services offer better dispute options.
By staying aware and cautious, you can better protect yourself from evolving identity theft scams in 2025. Always double-check before acting—if something feels off, it probably is!