🎁 Welcome offer10% off your first booking — new to Genie? Use code WELCOME10 at checkoutClaim it ›

Home › Guides › How to avoid home service scams and bad contractors

Guide

How to avoid home service scams and bad contractors

Most home service pros are honest, hard-working people. But the bad actors cost homeowners billions, and they're good at seeming legitimate. Knowing the red flags — and the simple checks that defeat them — protects your money and your home. Here's how to hire with confidence and spot a scam before it costs you.

The classic red flags

Be cautious of anyone who demands a large cash deposit upfront, pressures you to decide immediately, won't provide a written scope and price, can't show licensing or insurance, has no verifiable identity or reviews, or offers a deal that's suspiciously cheap. Legitimate pros are transparent and patient; scammers create urgency and resist paperwork.

High-pressure and 'found a problem' tactics

A common scam: a pro doing one job suddenly 'discovers' an urgent, expensive problem that must be fixed right now. Sometimes it's real, often it's manufactured. The defense is simple — never agree to major unplanned work on the spot. Get a second opinion and a written quote before authorizing anything beyond the original scope.

Vetted pros, protected jobs Built into every Genie job.
Genie verifies pros and protects your payment.

The deposit trap

Large upfront deposits are where homeowners lose the most — the pro vanishes, or does partial work and demands more. Avoid big cash deposits, prefer structured payments tied to milestones, and never pay the full amount before the work is done and inspected. Payment that's held until you confirm completion removes this risk entirely.

The checks that defeat scams

Verify identity, licensing (for regulated trades) and insurance. Read reviews for jobs like yours. Get everything in writing. Avoid cash-only deals. These four habits defeat the overwhelming majority of scams — and they're exactly what a vetted platform builds in so you don't have to chase them yourself.

Why platforms reduce the risk

Booking through a platform that vets pros, captures scope and price, requires approval for extra work, and holds payment until you confirm removes most of the ways scams work. On Genie, every pro is ID-verified and background-checked for in-home work, extra work needs your approval, and your payment is protected and backed by the Genie Protection Fund.

What to do if something feels off

Trust your instincts — if a pro is pressuring you, dodging paperwork, or demanding cash, stop. You're never obligated to proceed. Pause, get a second opinion, and book a vetted pro instead. A moment of friction now beats a costly cleanup later.

FAQ

What are the biggest red flags of a home service scam?

Large cash deposits, high-pressure urgency, no written scope or price, no verifiable licensing/insurance or reviews, and deals that are suspiciously cheap. Legitimate pros are transparent; scammers create urgency and resist paperwork.

How can I protect myself from contractor scams?

Verify identity, licensing and insurance, read reviews for similar jobs, get everything in writing, avoid cash-only deals, and never pay in full upfront. Platforms that hold payment until you confirm remove most of the risk.

What should I do if a contractor finds an 'urgent' extra problem?

Don't authorize major unplanned work on the spot. Get a second opinion and a written quote first. On Genie, any extra work must be approved by you before you're charged.

Related guides

DIY vs hiring a pro: how to decide on any home project
A clear framework for deciding whether to DIY a home project or hire a pro — the five questions that save money and prevent disasters, and the jobs you should never DIY.
How much should you budget for home maintenance each year?
How much to budget for home maintenance — the 1% rule explained, what drives your real number, where the money goes, and how to keep costs toward the low end.
Licensed, insured and bonded: what they actually mean when hiring a pro
Licensed vs insured vs bonded explained in plain language — what each protects, which jobs legally require them, and why they matter when you hire a home service pro.
New homeowner first-year checklist: what to do after you move in
A first-year checklist for new homeowners — the safety and security tasks to do immediately, the maintenance to set up, and how to learn and protect your new home.

Get it done on Genie

Browse services