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Contractor Fraud

Contractor Fraud

Contractor fraud refers to illegal business practices committed by individual contractors or contracting firms hired to renovate, repair, or (re)build residential properties. Contractor fraud in the residential sector may also be referred to as "home improvement scams." Contractor fraud encompasses a range of issues, from shoddy work and using substandard materials to escalating project costs and over-billing. Contractor fraud often ends up costing the victim twice because apart from losing a significant amount to the fraudster—whose inferior work may cause damage to previously undamaged parts of a home—a legitimate firm may also have to be paid to bring the work up to standard or repair the damage. A victim of contractor fraud is often pressured into paying for the work through threats and intimidation.

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