Hiring IT help? Look out for phony overseas contractors
- Kim Thompson: Better Business Bureau
- August 20, 2019
- 1092
If your business is in the market for IT support, be sure to do your homework before handing over any money. Since March 2019, BBB.org/ScamTracker has received more than 50 reports about a China-based firm that has tricked dozens of people out of anywhere from $3,000-$30,000. BBB reports show a total of over $2 million in losses to fake IT companies.
You are looking to hire a company to help develop software, set up a call center, build a website or perform other technology work. You see an ad online for an IT company with a strong track record and competitive prices. At first this firm appears to be everything it claims. You may even have a phone conversation with the CEO, who assures you a team of professionals will work on your project. But once the “IT contractor” receives the up-front payment, everything changes.
The companies who reported to BBB Scam Tracker said they got counterfeit products or simply never received their order. People who paid for a website or software development told BBB the contractor stopped responding to email or phone calls after getting payment. In other cases consumers report receiving low-quality work and being charged two or three times more than the agreed-upon price.
The current spike in complaints involves a company using the names ITR, ITResources or Scott Freeman. However, expect those aliases to change as savvy consumers catch on.
When hiring a contractor, whether for a home construction project or an IT business solution, similar tips apply.
Ask for references. Ask the contractor for a list of recent references you may contact. Ask the references about the services performed, their overall experience with the contractor and the quality of the work.
Don’t be tempted by low prices. Overseas firms may advertise low prices, but hiring a local company with a strong track record may save you money and headaches in the long run.
Arrange a payment schedule. Never pay in full, up front. Stagger your payments so your final payment is not due until the work is complete and you have fully reviewed it.
Get multiple estimates and a written contract. Always get estimates in writing and never let any work begin without a written and signed contract. Do not be pressured into signing an agreement before you are ready and make sure you read and understand everything.
You can find general tips for avoiding scams at www.BBB.org/AvoidScams. If you have been the victim of a contractor scam or another scam, help others spot fraudsters by filing a report at www.BBB.org/ScamTracker.
Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, read tips, follow us on social media and more.