I 100% agree. It's a massive issue. They prey on people who really don't have a lot of understanding about the tax implications that they're getting into, the fact that they don't have vacation time, and that if they get hurt, there's no unemployment insurance.
Also, these companies charge lower rates because they're not compliant, and they make it harder for the compliant industry to compete and stay in business. It puts a terrible stain on the image of our industry.