August 4, 2025
Utahns report staggering $32 million in construction fraud losses over last three years.
SALT LAKE CITY—The Utah Department of Commerce is taking aggressive action against construction fraud by establishing a new Residential Construction Fraud Task Force and appointing Utah’s first full-time prosecutor, housed within the Office of the Utah Attorney General, dedicated exclusively to these cases. This strategic move significantly bolsters the state’s ability to pursue and prosecute those who defraud hard-working Utahns of thousands of dollars, intensifying efforts to hold scammers accountable and safeguard consumers.
The sheer volume of complaints is escalating rapidly in Utah.The Division of Professional Licensing (DOPL) received 2,146 construction complaints in 2024 and already processed 1,047 so far in 2025. Additionally, data from Utah’s Division of Consumer Protection (DCP) underscores the significant financial impact of construction fraud: Utahns have faced a staggering $32 million in reported losses from construction-related complaints over the past three years. The devastation is particularly acute for new home construction, where the average loss per consumer reached $302,000.
“Creating the Residential Construction Fraud Task Force is a transformative step toward safeguarding consumers and restoring confidence in our construction industry,” said Margaret Woolley Busse, Executive Director of the Utah Department of Commerce. “This initiative also puts bad actors on notice that Utah is committed to aggressively pursuing and prosecuting those who defraud our citizens, ensuring accountability and justice.”
The Task Force will bring together key individuals from Commerce’s Divisions of Professional Licensing and Consumer Protection, the Office of the Utah Attorney General, law enforcement, prosecutors, industry representatives, and policymakers, including Utah Senator Cal Musselman and Representative Tom Peterson.
“Construction fraud is a direct threat to our efforts to put homeownership back in reach for our kids and grandkids,” said Senator Cal Musselman, “And this Task Force is a transformative step to safeguarding the investments of Utah’s families today and in the future.”
Representative Tom Peterson added, “As a building official by profession, I’ve seen firsthand how construction fraud erodes the very foundation of trust essential for a stable housing market in Utah, and I’m excited to take a proactive approach as a member of this Task Force to combat this threat.”
The Task Force has three main objectives to combat construction fraud:
- Aggressive Enforcement: Foster interagency cooperation among law enforcement, prioritize cases, and assist local attorneys with civil and criminal matters, utilizing the dedicated construction fraud prosecutor.
- Empowering Education & Outreach: Equip consumers with guides and best practices, provide compliance training for industry professionals, and train local prosecutors to handle construction fraud cases effectively.
- Proactive Regulatory Reform: Research laws in other states, collaborate with industry groups to identify regulatory gaps, and draft improved rules for DOPL and DCP.
“The Task Force’s work to root out construction fraud is an essential piece to bringing affordable housing to Utah,” said Steve Waldrip, the Governor’s Senior Advisor for Housing, Strategy, and Innovation, “It fosters the trust needed for people to confidently hire quality contractors, especially when investing in and improving older, more affordable homes.”
As Utah intensifies its efforts on construction fraud, Utahns are encouraged to move forward with home construction projects, equipping themselves with Utah’s full breadth of tools and resources to help them find a qualified, licensed, and trustworthy contractor.
Empowering Homeowners with New Resources and Best Practices
Thanks to a partnership with the Utah State Legislature and a recommendation from Representative Nelson Abbot, the Department of Commerce now offers a new Utah Residential Construction Agreement. It provides a valuable contract template designed to empower homeowners and licensed professionals. This resource can be used to fill in the blanks for a new agreement or as a comprehensive point of reference to ensure an existing contract is solid. It enhances communication, clearly defines project details, and protects both parties’ interests and investments against potential fraud.
DOPL encourages homeowners to utilize other available resources and tools, such as its “7 Steps to Home Improvement Success”, finding a licensed Utah contractor by searching the Construction Business Registry, and ensuring a contractor is both licensed and free of disciplinary actions via the DOPL Verify a License Tool.
DOPL’s free resources that help guide homeowners through the home improvement process are accessible at dopl.utah.gov/contracting/resources/.
Utah homeowners can file a complaint at either the Division of Professional Licensing or the Division of Consumer Protection.
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The Utah Department of Commerce is dedicated to fostering a fair, secure, and thriving commercial environment for all Utahns through robust regulation, education, and enforcement. Through the work of its 11 divisions and offices, Commerce empowers businesses and safeguards consumers to strengthen trust in Utah’s commercial activities.