Buzz
June marks the peak of moving season, and unfortunately, it’s also the time when moving scams thrive. While relocating can be inherently stressful, taking proactive measures can help you steer clear of fraudulent schemes that could turn the process into a costly nightmare.
A Newsweek report published earlier this year revealed that moving scams have doubled from 2015 to 2022, prompting scrutiny of the Department of Transportation (DOT). The agency has faced criticism for allegedly enabling dishonest moving companies by renewing their licenses despite fraud allegations. While the DOT has pledged to address the issue, it’s crucial to arm yourself with knowledge to avoid falling victim to these scams.
Understanding how moving scams operate
One of the most prevalent moving scams involves a moving broker instead of a direct moving company. These brokers, licensed by the DOT but subject to less oversight, lure customers with low estimates and deposits. Once belongings are loaded onto the truck, they demand significantly higher fees, effectively holding the customer’s possessions hostage until payment is made.
Scammers often use a tactic called 'reincarnation,' where they create fake reviews, obtain DOT licenses, and attract customers with unrealistically low quotes. Once negative reviews expose their fraud, they rebrand and repeat the cycle, continuing their deceptive practices.
Warning signs to identify fraudulent moving companies
Florida leads in reported moving scams, partly due to the low $750 cost of obtaining a DOT-approved broker’s license. Florida Attorney General Ashley Moody’s office has identified key red flags to help consumers avoid falling victim to these scams:
Brokers posing as moving companies: Many brokers misrepresent themselves as direct movers, often requiring deposits before finalizing costs or securing a carrier.
Estimates without inspections: Be cautious of companies offering quotes without assessing your belongings, as this often leads to inflated charges on moving day.
Rushed estimates: Quick quotes that ignore storage areas like closets or cabinets may indicate an attempt to lowball initially and overcharge later.
Pre-move full payment demands: Legitimate companies typically require payment upon delivery, not before the move begins.
Frequent name changes: Research companies thoroughly, as scammers often rebrand to evade negative reviews and legal scrutiny.
Hidden storage fees: Some companies claim door-to-door service but use multiple carriers, potentially adding unexpected storage costs.
Additional unexpected charges: Always inquire about potential fees, such as those for living on higher floors or not providing packing materials.
Incomplete or missing paperwork: Ensure all documents, including insurance policies, are valid and provided upfront.
Refusal of certain payment methods: Scammers often avoid credit cards like American Express or Discover, which favor customers in disputes, and instead push for non-refundable payment methods.
Steps to ensure thorough research when selecting a moving company
Fortunately, there are several ways to identify potential scammers, though no method is entirely foolproof. The DOT’s Federal Motor Carrier Safety Administration (FMCSA) provides a search tool to verify a company’s headquarters, registration status, complaint history, and safety records. Simply enter the company’s name or USDOT number on the FMCSA website to access this information.
Additionally, verify whether the broker or moving company is accredited by the Better Business Bureau (BBB). You can also begin your search with a list of BBB-accredited companies. (Newsweek has compiled a list of moving companies with the most complaints in 2021 and 2022, so ensure your chosen company isn’t listed there.)
Finally, always insist on written estimates, quotes, and contracts to protect yourself.
Be cautious of fraudulent reviews
Identifying fake reviews can help you steer clear of scam companies before contacting them. The Public Interest Research Group (PIRG) suggests being alert to the following warning signs:
Reviewers with no history: Genuine reviews usually come from users with a track record of multiple reviews visible online. Fake reviews often come from accounts with only one review or many private reviews that cannot be verified.
Unusual timing: Examine review dates. A cluster of reviews posted in a short timeframe may indicate purchased or fabricated testimonials.
Pay attention to language: Fake reviews tend to use vague or generic phrases, whereas authentic reviews are typically detailed and specific.
Steps to report a moving scam
If you suspect you’ve fallen victim to a moving scam, report it to the BBB here and the FMCSA here. You can also submit a complaint to the BBB, which will document it on the company’s record. This documentation can serve as evidence when disputing charges with your bank.
For additional resources to safeguard against moving fraud, visit the FMCSA’s website.
