Contractor Scams in Indianapolis: How to Protect Yourself
Scammers cost Indianapolis-area homeowners millions every year. Here are the most common scams and exactly how to avoid them.
The Indiana Attorney General's office receives thousands of contractor complaints annually, and Indianapolis is a hot spot for home improvement fraud. The scammers are sophisticated — they often look completely legitimate until it's too late.
2025 Statistics
Home improvement fraud was among the top 10 consumer complaints in Indiana last year. Average losses ranged from $5,000 to $50,000+ per victim.
The Storm Chaser
After storms, scammers go door-to-door offering "free inspections" or urgent repairs.
How It Works
They claim to find damage (real or fabricated), pressure you to sign immediately, take a large deposit, and either disappear or do shoddy work before moving to the next disaster area.
Real Indianapolis-Area Example
After a 2025 hailstorm in Hamilton County, homeowners reported multiple door-knockers claiming roofs needed immediate replacement. Several took deposits and were never seen again.
How to Protect Yourself
- Never hire door-to-door solicitors
- Wait 24-48 hours before making any decisions
- Get your own inspection from a local, established company
- Check if they have a local address (not just a P.O. box)
The Bait and Switch
Low initial quote that balloons once work begins with "unexpected" problems.
How It Works
They give an unrealistically low estimate to win the job, then claim they "found issues" that require expensive additional work. By then, your project is torn apart.
Real Indianapolis-Area Example
A Carmel homeowner was quoted $8,000 for a bathroom remodel. After demo, the contractor claimed hidden water damage required an additional $15,000. A second opinion revealed no such damage.
How to Protect Yourself
- Get detailed written estimates with itemized costs
- Include a clause requiring written approval for any additional work
- Get multiple quotes to identify outliers
- Be suspicious of quotes significantly lower than others
The Phantom Contractor
Takes deposit and disappears completely.
How It Works
They present professionally, may even have a website and reviews (fake), collect a large deposit, and vanish. Often operate under multiple business names.
Real Indianapolis-Area Example
In 2024, a contractor operating in Indianapolis collected over $100,000 in deposits from multiple homeowners before disappearing. He had operated under three different business names.
How to Protect Yourself
- Verify business registration with Indiana Secretary of State
- Check how long their phone number and website have existed
- Never pay more than 30% upfront
- Pay by check or card (never cash)
The Materials Scam
Charges for premium materials but installs cheap substitutes.
How It Works
Contract specifies expensive materials. Contractor installs cheaper versions, pockets the difference, and hopes you won't notice.
Real Indianapolis-Area Example
A Fishers homeowner paid for James Hardie siding but received a cheap vinyl substitute. The difference wasn't apparent until the siding began warping within a year.
How to Protect Yourself
- Specify exact brands and model numbers in contract
- Request to see materials before installation
- Ask for receipts showing what was purchased
- Have an independent inspector verify materials
The Permit Skip
Convinces you to skip permits to "save money" or "speed things up."
How It Works
Work without permits means no inspections. Shoddy work goes undetected until it fails or you try to sell your home.
Real Indianapolis-Area Example
A homeowner in Noblesville discovered during a home sale that their $40,000 addition was built without permits. They had to spend $25,000 to bring it to code or tear it down.
How to Protect Yourself
- Permits are non-negotiable for major work
- The contractor should pull permits (not you)
- Verify permits were actually pulled with the building department
- Ensure inspections are completed
The Lien Scam
You pay the contractor, but they don't pay their suppliers or subcontractors.
How It Works
Even after you've paid in full, suppliers or subs can file a mechanic's lien against YOUR property for unpaid bills.
Real Indianapolis-Area Example
A Zionsville homeowner paid $75,000 for a kitchen remodel. Six months later, the cabinet supplier filed a $20,000 lien — the contractor had never paid them.
How to Protect Yourself
- Request lien waivers from all suppliers and subcontractors
- Use joint checks made out to contractor AND supplier
- Verify the contractor pays their bills (check references)
- Hold final payment until all lien waivers are received
What to Do If You've Been Scammed
- Document everything — Photos, contracts, communications, payment records
- File a complaint with the Indiana Attorney General — File Online or call 1-800-382-5516
- Report to local police — Especially for fraud over $750 (felony in Indiana)
- File with the BBB — Creates public record
- Contact your bank/credit card — Dispute charges if possible
- Consult an attorney — For losses over $10,000, legal action may be warranted
- Warn others — Post reviews, report to neighborhood groups
Scam Prevention Checklist
Don't Become a Statistic
Scammers are professionals at looking legitimate. Even careful homeowners get fooled. Vetted Crews has caught fraud that passed every standard check — because we know exactly what to look for.
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