Home improvement projects can transform your living space, but they come with their share of risks—especially when it comes to paying your builder.
In recent years, scams targeting homeowners during the payment process have become increasingly sophisticated, leaving many out of pocket. From fake emails posing as your builder, to fraudulent changes in bank details, scammers are finding new ways to trick you into paying the wrong person.
To make sure your money goes where it’s meant to, here’s how to protect yourself when paying tradespeople for home improvements.
Scammers are always evolving their tactics, so it’s important to stay aware of how they operate. Here are a couple of real-life examples:
Fake emails from builders: Scammers may send you an email that looks like it’s from your builder or tradesperson, asking for payment or a deposit. They might claim there’s been a schedule change or that they need the money earlier than expected. Always double-check by calling your builder directly to verify any payment requests.
Fraudulent invoice scam: A more elaborate scam involves receiving a legitimate invoice, followed by a second email or message claiming that the bank account details have changed. Homeowners who fall for this trick end up transferring large sums of money to the scammer’s account instead of the builders. Always confirm any changes in account details directly with your builder before making a payment.
Paying for home improvements should be straightforward, but you must take steps to protect your money. Here are essential tips to avoid falling victim to payment scams:
1. Always verify payment details
If you receive an invoice via email, call the tradesperson directly using a verified phone number to confirm the payment details. You should also be wary of sudden changes, for example, if an email says the account details have changed. Always confirm such changes by contacting your builder before sending any money.
2. Make small test payments first
Before sending a large sum, make a small test payment (e.g., £10-£20) and confirm with the builder that they’ve received it. This extra step ensures you're transferring funds to the correct account.
3. Use secure payment methods
Where possible, use secure payment methods like credit cards, which offer extra protection in case something goes wrong. Avoid paying large sums in cash, as it offers no recourse if the payment goes missing.
4. Set up payment milestones
Agree on payment milestones with your builder. Pay for each stage of the project as it’s completed, rather than paying a large amount upfront. This reduces your financial risk if problems arise later.
If you do fall victim to a scam, acting quickly can increase your chances of recovering your money:
Contact your bank immediately. Report the fraud to your bank as soon as you notice it. They may be able to freeze the funds or even recover them in some cases.
Report the scam. You should also report the fraud to Action Fraud (the UK’s national fraud and cybercrime reporting centre). This can help authorities track down the criminals and prevent further victims.
Get legal advice. If the amount lost is substantial, you may want to seek legal advice on your options for recovery.
If you’re considering renovations to your house and need help with funding, you could consider applying for a home improvement loan.
Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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