For anyone considering a home renovation, the The best office work Citizens are advised to exercise caution when hiring a home improvement contractor.
Home improvement scams in 2020 were ranked third in the Better Business Bureau’s annual Fraud Tracking Canada Risk Report. The report used a three-dimensional approach to measure fraud: exposure, vulnerability, and financial loss.
According to the BBB, the exposure rate for home improvement scams was just 2.9 percent low, but the sensitivity rate was high at 73.9 percent, with consumers losing an average of $1,000.
The two biggest scams, respectively, were loan advance fees and online purchases.
Like home improvement scams, prepaid loans had a low overall exposure rate of 6.2 percent but a high sensitivity rate of 71.1 percent. The average loss was $1,400.
Online purchases had a much higher overt exposure rate at 33.7 percent, and a high sensitivity rate at 75.4 percent. However, the average loss was much lower at $116.
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The BBB says home improvement scams often see scammers working as contractors to offer low prices or a short time frame to make renovations. Phantom contractors use high-pressure selling tactics and demand money up front to manipulate victims.
“Home improvement scams can start with a knock on the door, a flyer or an advertisement. Sometimes scammers hide outside home improvement stores and in other cases, they create fake websites and business accounts on social media,” the BBB said.
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“Scammers find reasonable reasons for consumers to give them money and they will do shoddy work or no work at all.”
Citizens across Canada have reported losing thousands of dollars to Reno home scams last year.
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According to the BBB, one of the victims in Nanaimo lost $18,000 in a home improvement scam.
Tips from the BBB to avoid home improvement scams include:
- Research and collection of information
- Say no to cash deals and high pressure selling tactics
- Find contractor business at BBB.org
- Ask for and check references
- Avoid cutting corners.
BBB spokeswoman Carla Laird said, “Hire the right person (the contractor) and you can relax knowing that your project is in good hands.
“Hire the wrong person and you could face a wide range of problems from incomplete work and damage to your property, to the loss of valuable time and thousands of dollars.”
For more information on the 2020 BBB Scam Tracking Software Risk Report, visit Best business office website.
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