# Home Improvement Scams: How to Spot Them and Protect Yourself

> Fake grants, storm chasers, and deductible fraud: how to spot home improvement scams before you sign. Red flag checklist included.

[Home](/index.md)› Avoid Home Improvement Scams

## Spot Home Improvement Scams and Protect Your Finances

## The Bottom Line

Home improvement scams can happen at any stage of a project, but knowing the warning signs can help you avoid them. Learn what to watch for before you hire or pay a contractor, and what steps to take if you think you’ve been targeted.

## On This Page

- [How to Spot a Scam Ad](#how-to-spot-a-scam-ad)
- [How to Spot Homeowner Grant and Senior Relief Scams](#how-to-spot-homeowner-grant-and-senior-relief-scams)
- [How to Spot Contractor Fraud](#how-to-spot-contractor-fraud)
- [Where to Report Fraud and Scams](#where-to-report-fraud-and-scams)
- [How to Find a Legitimate Contractor](#how-to-find-a-legitimate-contractor)
- [Ask Remy About Scams](#ask-remy-about-scams)
- [Frequently Asked Questions](#frequently-asked-questions)
- [Find Your Match](#match-with-trusted-contractors)

## How to Spot a Scam Ad

Many home improvement scams start with an ad on Facebook, Instagram or elsewhere online, including ads promoting homeowner grants, senior relief programs or contractor services. Knowing what to watch for can help you spot a questionable offer before you waste time or money.

These examples are fictional, but the warning signs they illustrate are based on patterns commonly seen in deceptive ads. The images use licensed stock photography with fictional names, brands, domains and ad copy. Use the annotations to learn what to watch for when you come across similar home improvement offers online.

Golden Years Window Initiative (fictional) Facebook Ad

Golden Years Window Initiative Sponsored

![Stock photo of a senior couple used in an illustrative fictional ad example](/images/scam-ads/senior-couple.jpg)

H.A.P. VERIFIED

Golden Years Window Initiative

12,400+ Homeowners Helped seniorhomebenefit.example

Apply Now →

1

**Fake Government Agency:** “H.A.P. Verified” implies that this program is a federal home-assistance program. There is no H.A.P. agency.

2

**Unverifiable Claims:** “12,400+ Homeowners Helped” is a fabricated number with no verifiable source.

3

**Fake Program:** “Golden Years Window Initiative” is not a real program. Clicking ‘Apply Now’ takes you to a form that harvests your personal information.

Patriot Window Savings (fictional) Instagram Ad

Patriot Window Savings Sponsored

![Stock photo of an American flag on a porch used in an illustrative fictional ad example](/images/scam-ads/flag-porch-1.jpg)

★ VETERAN OFFER

Patriot Window Savings

$1,999 for 10 Windows patriotwindowsavings.example

Claim Offer →

1

**Appeal to Emotion:** Military-style star badge is an emotional prop. We’re not aware of any veteran benefit that provides $1,999 windows. Check any claimed benefit directly with the VA.

2

**Too-Good-To-Be-True Pricing:** An offer of “10 brand-new windows for $1,999” is often a red flag. Ask for an itemized written quote and compare it with at least two other local contractors before you commit.

3

**Missing Information:** There is no program named, no agency identified, no eligibility criteria anywhere on the ad.

Homeowner Relief Program (fictional) Display Ad

Homeowner Relief Program Sponsored

![Stock photo of a suburban house exterior used in an illustrative fictional ad example](/images/scam-ads/house-exterior.jpg)

Homeowner Relief Program

Select your birth decade to check eligibility:

1940s 1950s 1960s 1970s+

Every option leads to the same lead form

1

**Fake Government Agency (implied):** Generic “official-looking” framing implies government endorsement. This is not authorized or affiliated with any agency.

2

**Fake Program:** Free window replacement programs are rare, and real ones (such as weatherization assistance) have strict income rules and are applied for through official channels, not ads.

3

**Data-Harvest Buttons:** Birth-decade buttons are a data-harvest dark pattern. Every option leads to the same form for harvesting your personal information.

SecureHome Window Deal (fictional) Instagram Ad

SecureHome Window Deal Sponsored

![Stock photo of a contractor installing a window used in an illustrative fictional ad example](/images/scam-ads/window-install.jpg)

LIMITED TIME

SecureHome Window Deal

$149? * *plus installation, materials, permits…

Apply Now →

1

**Too-Good-To-Be-True Pricing:** Promises of $149 for new windows are often a red flag because materials alone cost $150–$400+ per window.

2

**Fake Application:** “Apply now” leads to a form for harvesting your personal information. The scammers can then sell your information.

3

**Deniability Cues:** Watch for prices written as questions, like “$149?”. They often aren’t a firm offer.

Homeowner Alert Network (fictional) Facebook Reels Ad

Homeowner Alert Network Sponsored

![Stock photo of a television news studio backdrop used in an illustrative fictional ad example](/images/scam-ads/news-studio.jpg)

BREAKING

Ad

Homeowner Alert: Assistance Program Practically [Free]

Sponsored Content

1

**Advertorial:** An ad that mimics a real TV news broadcast or other news. This is a paid ad, not journalism (the “Ad” label is tiny, bottom-right).

2

**Deniability Cues:** “Assistance program practically [free].” The word “practically” is vague enough that the ad never commits to “free.”

3

**False Urgency:** “Homeowner alert” and “Breaking” framing is emotional manipulation. No government agency issued this alert.

Veterans Window Benefit Check (fictional) Facebook Ad

Veterans Window Benefit Check Sponsored

![Stock photo of an American flag on a porch used in an illustrative fictional ad example](/images/scam-ads/flag-porch-2.jpg)

Veterans Window Benefit Check

Are you a veteran?

Yes No

veteranswindowbenefit.example

1

**Fake Government Agency:** Fictional .example domain looks official but is not government, not affiliated with the VA or any agency.

2

**Fake Eligibility Gate:** “Are you a veteran? Yes / No” is a fake eligibility gate. Both answers lead to the same form for harvesting your personal information.

3

**Fake Program:** No agency name, program ID, or funding source appears anywhere on the page.

Photo backdrops above are licensed stock photography; none depict any real advertiser, and no photo is a screenshot or derivative of any actual ad. All headlines, badges, counters, and domains shown are original fictional text composed by our editorial team. Any resemblance to a real business, program, or individual is coincidental. Used for educational purposes to help homeowners recognize these deceptive-ad patterns in the wild.

🏭

## How to Spot Homeowner Grant and Senior Relief Scams

Homeowner program scams are common. They often promise thousands of dollars in free government money for home repairs, but many of these programs are fake, and where a real assistance program does exist it does not work the way these ads describe. The goal is to steal money or your identity.

### How Scammers Usually Contact Homeowners

| How they contact you | What it sounds like |
| --- | --- |
| Social media ads (Facebook, Instagram) | Paid ads using copy like “$15,000 in FREE Government MONEY for you!” or “Seniors: Claim Your Home Repair Benefit Before It Expires.” Some use deepfake videos of politicians or celebrities to appear credible. |
| Postcards and direct mail | Official-looking mailers with seals, government-style fonts, and urgent deadlines. Often include a “claim number” to make you feel pre-selected. |
| Robocalls and text messages | Automated calls claiming you’ve qualified for a government assistance program and asking you to “press 1” to speak with an agent. |
| Social media direct messages | Often come from cloned profiles that look like friends or family. The message claims the sender just received a large grant and wants to share how. |

### Three Common Money Theft Models

#### Model 1: The Processing Fee

Most common. After “qualifying,” you’re told to pay a $150–$2,000 fee to receive your grant. Payment is demanded via gift card, wire transfer, Cash App, or crypto. You pay. The grant never arrives.

#### Model 2: The Subscription Trap

A small $1.99 charge unlocks a “grant database.” It automatically converts to a $72–$95/month subscription. Most victims don’t notice for months. (FTC v. In Deep Services / Grant$ For You Now.)

#### Model 3: Book-to-Coaching Funnel

A $59 “grant writing guide” escalates into hundreds more in coaching and seminars, with no grants ever delivered. (FTC v. Grant Writers Institute.)

### Theft Model Examples

**150,000+ scam ads on Meta:** The Tech Transparency Project identified 63 scam advertisers that spent $49 million on Meta platforms, running over 150,000 ads targeting older adults with fake government benefit offers. Some advertisers spent over $1 million before removal. (Tech Transparency Project, 2025.)

### Identity Theft Model

Many of these scams collect far more than your money. When you “apply,” the form asks for your Social Security Number, bank account number, and date of birth. In a 2025 DOJ case, criminal operators were selling lists containing the personal data of over 7 million elderly Americans (collected through fake applications) to other fraud operations for $10,000 or more per list. (U.S. v. Murray, DOJ June 2025.)

### How to Verify Before Sending Data or Money

**Real government programs rarely contact you unsolicited (by phone, text, email, social media, or mail), so treat an offer you didn’t seek out as suspect until you’ve verified it.**

- Go directly to **grants.gov** or **benefits.gov**, never through a link in an ad
- Call **211** (free, nationwide) to be routed to legitimate local assistance programs
- Look up the agency’s official number on their .gov website, not the number in the ad

### Red Flags To Watch For

The contact was unsolicited. You didn’t apply or sign up

You were told you “won” or were “selected” without applying

They ask for your SSN or bank account to “verify eligibility”

Any upfront fee required to “process,” “release,” or “deliver” the grant

Payment requested via gift card, wire transfer, Cash App, or cryptocurrency

The agency name cannot be found on a .gov website

“Today only” pressure: “Offer expires in 24 hours”

The offer came via Facebook, Instagram, text, or robocall

Cannot find the program on grants.gov or benefits.gov

### What To Do If You Are Targeted

1

**Stop immediately.** Do not send any additional money, gift cards, or personal information regardless of what the scammer says next.

2

**Contact your bank immediately** if any payment was made. Request a dispute or reversal. Wire transfers and gift cards are harder to recover. Act within 24–48 hours.

3

**Freeze your credit** if you shared your SSN. Free at Equifax, Experian, and TransUnion.

4

**File a report at [reportfraud.ftc.gov](https://reportfraud.ftc.gov)**. The FTC shares reports with 3,000+ law enforcement partners.

5

**Contact your state Attorney General** (search “[your state] attorney general consumer protection”). Many states have dedicated elder fraud units.

6

**AARP Fraud Watch Helpline: 1-877-908-3360** (free, Mon–Fri). Trained specialists provide guidance and recovery resources.

🔨

## How to Spot Contractor Fraud

In a contractor fraud scam the contractor often does do the work, but it can be seriously overpriced, poorly executed, or covered by a fraudulent insurance claim, so the homeowner loses money either way. These are especially common immediately after storms, when homeowners are under pressure and insurers are overwhelmed.

### 1. Storm Chaser Scam

Storm-chaser scams are a common contractor fraud issue. They play on homeowners’ worries and insurance companies that are backed up with claims. Usually these begin within hours of a major hail or wind event.

Here’s what this scam often looks like:

A contractor arrives at your door unsolicited. They say, “We noticed some damage while we were in the area. We can do a free inspection right now.”

Some contractors physically damage your roof during the “inspection,” bending or tearing shingles, then photographing the damage they just created.

Contractors may also ask you to sign an assignment of benefits (AOB) form. This transfers your insurance claim rights to the contractor, who then controls all insurer communications and inflates the claim.

To close the sale, they offer to “take care of your deductible.” Don’t accept this: you might be committing insurance fraud. Deductible waivers are treated as insurance fraud by many state regulators, even when the contractor proposes it. Agreeing can put you at risk. Check your policy and your state’s rules first.

### 2. Leftover Materials Scam

In this scam, a contractor claims they just finished a job and have leftover shingles or siding they can offer at a discount. That job doesn’t exist. The manufactured urgency (“we have to return the materials today”) prevents you from comparing prices or checking credentials. The pressure to accept such a great deal can feel overwhelming.

### 3. Fake Inspection Scam

In this scam, contractors show you photos of a different property’s damage, claiming it is your roof. In some cases, they plant shingles on the ground before knocking, then point to them as “evidence” your roof is failing.

It’s important to ask questions when this happens, like:

- When did you take these photos?
- Can you show me exactly where on my property this damage is located?

Digging deeper can help you spot a scam. Read about [how to get a legitimate roof inspection](/roof-inspection-cost/index.md).

### Red Flags To Watch For

They appeared door-to-door, especially right after a storm

They offer to waive your insurance deductible or “cover it”

They ask you to sign an AOB before any work begins

More than 25% demanded as an upfront cash deposit

No written contract or detailed scope of work provided

Cannot provide a verifiable state license number

Out-of-state plates or no company vehicle markings

“Leftover materials” pitch with same-day pressure

Damage photos weren’t clearly taken at your property

They suggest you pull your own permits

They pressure you to call your insurer while present

### What To Do If You Are Targeted

1

**Do NOT sign any Assignment of Benefits form.** If you already signed, contact your insurer immediately. AOBs can sometimes be rescinded within a short window.

2

**Call your insurance company directly** using the number on your policy, not a number the contractor provides. Report the contractor’s approach.

3

**Get at least 2–3 written estimates** from contractors you find independently. Never accept a same-day quote from someone who knocked on your door.

4

**Verify their license** at your state’s contractor licensing board (search “[your state] contractor license lookup”).

5

**Report to your state insurance commissioner** if an insurance claim is involved. Deductible waiver fraud is investigated by state insurance departments.

6

**File with the BBB** at bbb.org/file-a-complaint. BBB complaints are public and warn other homeowners in your area.

## Where to Report Fraud and Scams

**FTC (all fraud):** [reportfraud.ftc.gov](https://reportfraud.ftc.gov)

**FBI (internet crime):** [ic3.gov](https://ic3.gov)

**AARP Fraud Helpline:** 1-877-908-3360 (Mon–Fri, free)

**BBB Scam Tracker:** [bbb.org/scamtracker](https://bbb.org/scamtracker)

**State AG:** Search “[your state] attorney general consumer protection”

**State insurance commissioner:** Search “[your state] insurance commissioner fraud”

## How to Find a Legitimate Contractor

Scams may be common, but there are also many reputable, trustworthy contractors. Here is how they do business.

- **They have a state contractor license**  — look it up on your state’s licensing board to verify it rather than taking their word for it.
- **They provide proof of insurance**  — a certificate of general liability and workers’ compensation cover, before starting work.
- **They use a written contract**  with a detailed scope of work, timeline, materials list and payment schedule, negotiated and signed before any work begins.
- **They require a reasonable deposit**  — typically 10–25% of the project cost. Be wary of requests for 50% or more upfront, or the full amount before work starts.
- **They give you time**  to review the estimate and get several quotes. Same-day pressure is often a major red flag.
- **They have verifiable reviews**  on Google, the BBB or Houzz from customers in your area, not just a Facebook page created last month.
- **They pull their own permits**  when required, and welcome inspections.

Before hiring, always verify a contractor's license and insurance yourself. Don't rely on anyone else's word for it. [See our full contractor red flags checklist ›](/contractor-red-flags/index.md)

## Frequently Asked Questions

### Does the government give free money for home improvement?

No. The U.S. government does not give unsolicited grants to homeowners for general home improvement. If you receive an unsolicited offer claiming otherwise, treat it as a likely scam and verify it. Legitimate assistance programs require a formal application, have strict income limits, and are administered by known federal agencies. They rarely contact you unsolicited.

### Is a “free roof replacement program” offer real?

Probably not. Ads promising free roof replacement are a common scam tactic. A contractor may be able to file a legitimate insurance claim if your roof sustained documented storm damage, but any program claiming to give you a free roof through a Facebook ad or unsolicited contact is designed to steal money or personal information.

### Is it legal for a contractor to waive my insurance deductible?

In most states, no. Waiving a policyholder’s deductible is considered insurance fraud in many jurisdictions. States including Florida, Texas, and Colorado have passed specific laws prohibiting this practice. If a contractor offers to waive your deductible or “cover it with extra work,” that is a major red flag and potentially illegal for both parties.

### What is an Assignment of Benefits and should I sign one?

An Assignment of Benefits (AOB) is a document that transfers your insurance claim rights to the contractor. Once signed, they control all communications with your insurer and receive payment directly. This can make it very difficult to dispute inflated claims or change contractors mid-project. Legitimate contractors rarely require an AOB before starting work. Do not sign one under pressure. Always consult your insurance company first.

### How can I verify if a contractor is licensed?

Your state probably has an official contractor license lookup page. Search for ‘[state] contractor license lookup’ to get started. Be aware that not every state licenses every trade.

Using a contractor license lookup, you can typically verify the license number, check if it is current, and see any disciplinary actions. Also, ask the contractor for their license number before work begins. A legitimate contractor will provide it without hesitation.

### What is the most common home improvement scam?

Storm chaser fraud (out-of-state contractors who follow weather events and use pressure tactics to get quick signatures) is among the most reported. Upfront payment fraud (taking a deposit and disappearing) and bait-and-switch materials are also common.

### How can I report a contractor scam?

File complaints with your state contractor licensing board, the FTC at ReportFraud.ftc.gov, your state attorney general’s consumer protection office, and the BBB. For significant amounts, consult a construction attorney about bond claims or civil suit.

### Is it legal for a contractor to ask for payment upfront?

Deposits are legal and common. What is not acceptable is demanding 50% or more before work begins, or asking for full payment upfront. A reasonable deposit is 10-15% of the project total, with payment milestones tied to project completion.

### What is a contractor bond and how does it protect me?

A contractor bond (also called a surety bond) is a three-party agreement that protects you if the contractor fails to complete the work or causes damage. If a licensed, bonded contractor defrauds you, you can file a claim against their bond.

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Source: https://remodelyourhome.com/home-improvement-scams/