I don't have any advice on how to avoid or deal with scams like this. Unfortunately most folks don't have any experience with wedding photography, so it can be hard to spot the con artist. Anyone can throw up a professional looking website (heck, that might be a clue right there, many real pros have really lame websites), write up a good looking contract, steal photos off the internet for a portfolio, and arrange for fake referrals. I guess the only way is to hire someone who has photographed a wedding for people you actually know and can trust.
In my opinion it's con artists like this that I'm worried about hurting the industry, and not the amateurs working for cheap/free that many pros are bitching about.