Avoiding Asphalt Scams

It is an unfortunate reality in today's world that scams are everywhere. Unfortunately, the asphalt industry is not an exception. We at Black Pearl Asphalt have already had several reports from clients in the area of attempts to scam them. In order to protect not only our customers but others in the area, we've but together this quick guide on what these scams look like and how to avoid them.

What does an Asphalt scam look like?

A scam in regards to the asphalt industry can take a couple of different forms. The most prominent are imposter scams, and deposit scams. An imposter scam, according to the Federal Trade Commission, is "when a scammer lies and pretends to be someone they’re not to trick you into giving them money". A deposit scams are what it sounds like on the tin - someone offers a service in exchange for a deposit, but never returns to complete the expected work. Both types of scams are among those most often seen in construction and contractor work as a whole, asphalt industry included.

Less common kinds of scams consumers may face can include property lien scams (where someone completes work without notice and then tells customers they will put a lien on the property if not paid immediately), general phishing or information gathering scams, and wire transfer scams. On occasion, scammers will attempt multiple scams at the same time - we've heard reports of legitimate companies being impersonated for deposit scams and wire transfer scams, as well as property lien scams.

How can I avoid them?

Each type of scam comes with different ear-markers to look out for. With imposter scams, a scammer impersonates another business that is trusted by the public. Property lien scams will often use similar methods. The first thing to consider is whether that company would act in the manner they are, and whether they have reason to have made contact with you or your business. Look up where someone says they are from, especially if they ask for money. Contact home offices if something feels wrong or confusing. It is not uncommon for asphalt companies to work with subcontractors, so some write off seeing unknown companies on their property by assuming this is why they are there. It is always acceptable, even encouraged, to reach out to the company you hired to get confirmation. Black Pearl Asphalt tries to help ease this for our customers by always receiving scheduling confirmation for a client before we would begin work, but this is not always standard practice for the industry.  If you received an estimator or foreman's number, try to reach out any time you are unsure about who might be completing work or asking for payment.

Deposit and money transfer scams can be harder to catch. Standard practice for the industry has companies requesting deposits before completing work, and most will accept credit cards and remote payments online or over the phone. For starters, it is important to consider whether you have received a contract for work. If you have not signed an estimate or contract, or at least spoken to a company representative authorizing a scope of work, you may want to double check who is requesting money from you. Trust your instincts - if something feels off about how someone is requesting payment, or who they might be, it is better to confirm before complying.

Most reputable companies will provide contracts for customers to sign before any work is started or completed. Most reputable companies will also not require a specific form of payment, such as cash, without notifying consumers beforehand (and usually in writing). Most, like Black Pearl, will also never request customers complete a wire transfer for payment. Payment links from us will also only be sent through our invoice software, and will be accompanied by an itemized invoice that reflects the scope of work completed, or specifies that the amount is a deposit for the signed estimate. If you ever have questions about completing a payment, or concerns about the validity of a payment request, you should always be able to reach out to a company's office to confirm.

Due diligence is the first step to avoiding a scam. Look into a company's history - how long they've been operating in the area, references and reviews, the like. Most legitimate businesses will be willing to provide references from past clients, offer proof of insurances or a W-9 and similar paperwork when requested, have clear and competent contracts, and will provide contact information that includes a physical address in the service area when they are requested. While new companies will enter the area, companies will change names and transfer ownership, and older known companies will close or retire, it is still important to look into a company you have not heard of or worked with before. You can always search up any legitimate business in Colorado through the Business Database Search, which provides a search engine for all licensed and reputable business registered in the state. If your city requires that providers obtain an additional license, a business should also be able to proof of this to you as well.

Other important things to know:

If you are in a situation where you are concerned someone might be scamming you, do not make any payments. If you are unable to reach someone to make a confirmation on legitimacy, it is better to tell the person making contact with you that you would prefer to wait to confirm. If you are being harassed or threatened, contact your local law enforcement.

If you have already been a victim of a scam, whether for asphalt or another industry, it is always smart to reach out to law enforcement or regulatory offices in your area. In Colorado, the Consumer Protection Act is designed to protect residents from unlawful and unfair business practices in the state. You can file an online claim of fraud or other scams through stopfraudcolorado.gov.

It is better to be safe with your property and your finances than to worry about inconveniencing someone. While we can't speak for every legitimate business out there, Black Pearl Asphalt and all of the other local companies we work with would rather you reach out for confirmation than be put in a position which compromises your security. Every estimate we send has contact information for a company representative that can help you navigate the legitimacy of an issue, be it a request for money or an attempt to complete work.