Home Improvement Scams Rank Fifth Riskiest In America With A Median Loss Of $1,405 And They Top The List Of Scams That Start With An In Person Pitch

The knock on the door usually comes with a smile and a story. A crew “happened to be in the neighborhood,” they noticed something on your roof, or they have leftover materials from a job down the street and can give you a deal. It sounds friendly, and that is exactly the point.

A blue front porch with a black door and white wicker furniture.

The Better Business Bureau’s 2025 Scam Tracker Risk Report shows how often that kind of pitch goes wrong. The report ranks home improvement scams fifth riskiest in America, with a median loss of $1,405.

What The BBB Report Found

The BBB’s 2025 Scam Tracker Risk Report was published in 2026. Here is what it says about home improvement:

Home improvement scams ranked No. 5 riskiest in 2025. They also ranked No. 5 in 2024.
The median loss was $1,405, down from $1,800 in 2024.
69.1% of reports involved a monetary loss.
Home improvement was the top scam type for in person contact.

A median is the middle figure, so half the losses reported were smaller than $1,405 and half were larger. Holding the No. 5 spot in both 2025 and 2024 means the category kept its place year over year.

That last point deserves a closer look. Many scams happen online or over the phone. Home improvement is the number one scam type when the contact is made in person. A stranger standing at your door is a different kind of pressure than a pop-up on a screen.

A Little Good News, A Lot Of Caution

The median loss fell from $1,800 to $1,405, which is a step in the right direction. But the other number is the one to remember. In 69.1% of reports, the person lost money. That is more than two out of three. Most people who reported a problem were out of pocket.

Plenty of honest, hardworking contractors do good work every day. The goal is to know the warning signs so you can tell the difference.

Warning Signs At The Door

Pressure to decide now. A good contractor will give you time to think and compare. A sales line like “this price is only good today” should make you step back.
A demand for a big payment upfront. Be wary of anyone asking for most or all of the money before any work begins, or insisting on cash only.
An unsolicited offer. Someone who shows up unannounced and says they spotted a problem with your home deserves extra scrutiny. Do not agree to anything on the spot.
Vague or missing paperwork. If they will not give you a written estimate or a contract, that is a red flag.
No local roots. Be careful with anyone who cannot give you a real business name, address and phone number.

How To Hire Safely

Do your own search. Instead of hiring whoever shows up, look for contractors yourself. Ask neighbors, friends and family for names they trust.
Check them out. Look up the business with the Better Business Bureau, and check with your state or local licensing office where licenses are required. Rules differ from place to place, so find out what applies in your area. Ask for the contractor’s license number where one is required, proof of insurance and a list of recent local references, then call those references yourself.
Get multiple written estimates. Make sure each one describes the same work so you can compare fairly. Ask what is included and how long the job will take.
Ask for a written contract. It should spell out the work, the materials, the total price, the payment schedule and the timeline. Read it before you sign, and keep a copy.
Pay carefully. Avoid paying the whole amount upfront. Tie payments to progress, and use a method that leaves a record, such as a check or credit card, rather than cash.
Do not sign off early. Walk through the finished work before making the final payment, and make sure you are satisfied.

If A Pitch Makes You Uneasy

You are allowed to say no. You are allowed to close the door. And you are allowed to say, “Leave your information and I will call you if I am interested.” A legitimate business will understand. Someone who gets angry or pushes harder is telling you something.

If you think you have been scammed, act quickly. Contact your bank or card company right away, gather your paperwork, and report what happened to the Better Business Bureau and your local consumer protection office. Reporting helps others avoid the same trap, and it is exactly how reports like this one get built.

Talk To Your Family

Share this with neighbors, parents and grandparents. A quick conversation about what to do when a stranger offers a deal at the door can save someone a lot of grief. Make a family rule: nobody signs or pays anything the same day, and everybody calls someone else before making a big decision.

The BBB numbers show that home improvement scams are a persistent problem, and that the doorstep is where they happen most. A little patience, a few phone calls and a written contract go a long way toward making sure your next project ends with a better home and not a hole in your wallet.

Willow and Hearth