$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Contractor and home repair scams/Flyer
tree removal scam
Unlicensed operators offer cheap tree removal but leave stumps, damage property, or abandon debris, and have no insurance to cover the damage.
“contractor scam”
↑ 743%Key indicators
Usually targetsHomeowners
Often hitsReal estate professionals and homebuyers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
An unlicensed crew distributes flyers or knocks on doors offering tree removal at below-market prices.
2
They partially complete the work, often leaving stumps, debris, or property damage.
3
If a worker is injured or property is damaged, the homeowner may be liable because the crew has no insurance.
What to do first
Verify the company carries both liability insurance and workers' compensation — ask for a certificate of insurance and call the insurer to confirm.
Related terms
tree service fraudunlicensed arborist scamtree trimming scamContractor and home repair scamsFlyerSurgingHomeownersOlder adultsNew homeownersReal estate professionals and homebuyersRetirees and seniorsUnited StatesCanadatree service fraudunlicensed arborist scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Priya, 42, a homeowners, encountered what appeared to be a legitimate contractor and home repair scams situation while using Flyer. An unlicensed crew distributes flyers or knocks on doors offering tree removal at below-market prices.
Step 2
What happened next was calculated: They partially complete the work, often leaving stumps, debris, or property damage.
Step 3
The pressure escalated quickly: If a worker is injured or property is damaged, the homeowner may be liable because the crew has no insurance.
The outcome
Priya realized something was wrong when contractor has no proof of liability insurance or workers' compensation coverage. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify the company carries both liability insurance and workers' compensation — ask for a certificate of insurance and call the insurer to confirm. Priya's experience shows why contractor has no proof of liability insurance or workers' compensation coverage and they offer a price dramatically lower than established tree services are the clearest early warning signs.
How to identify it
- Contractor has no proof of liability insurance or workers' compensation coverage
- They offer a price dramatically lower than established tree services
- No written scope of work defining what will be removed and how debris will be handled
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify the company carries both liability insurance and workers' compensation — ask for a certificate of insurance and call the insurer to confirm.
- ✓Get a written contract specifying all work to be performed, including stump removal and debris cleanup.
- ✓Check if your municipality requires tree service operators to have a specific license or permit.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- State insurance departments warn that homeowners can be held liable for injuries to unlicensed, uninsured workers on their property.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify the company carries both liability insurance and workers' compensation — ask for a certificate of insurance and call the insurer to confirm.
- ✓Get a written contract specifying all work to be performed, including stump removal and debris cleanup.
- ✓Check if your municipality requires tree service operators to have a specific license or permit.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
State insurance departments warn that homeowners can be held liable for injuries to unlicensed, uninsured workers on their property.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homeowners, Older adults, New homeowners
Geographic concentration
United States, Canada
Primary channel
Flyer — Contractor and home repair scams
Why this group is vulnerable
Homeowners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- State insurance departments warn that homeowners can be held liable for injuries to unlicensed, uninsured workers on their property.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about tree removal scam
How does the tree removal scam work?+
An unlicensed crew distributes flyers or knocks on doors offering tree removal at below-market prices. They partially complete the work, often leaving stumps, debris, or property damage. If a worker is injured or property is damaged, the homeowner may be liable because the crew has no insurance.
What are the warning signs of tree removal scam?+
Contractor has no proof of liability insurance or workers' compensation coverage They offer a price dramatically lower than established tree services No written scope of work defining what will be removed and how debris will be handled
What should I do if I encounter tree removal scam?+
Verify the company carries both liability insurance and workers' compensation — ask for a certificate of insurance and call the insurer to confirm. Get a written contract specifying all work to be performed, including stump removal and debris cleanup. Check if your municipality requires tree service operators to have a specific license or permit.
Who is most at risk for tree removal scam?+
This scam primarily targets Homeowners, Older adults, New homeowners. It is most commonly reported in United States, Canada and typically appears on Flyer.
Is tree removal scam getting worse?+
tree removal scam is currently surging — reports are increasing rapidly. It has been reported across US, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.