Below, you’ll find the top 5 scams to avoid and top 10 red flags to look for when hiring a moving company. Why? Because in 2019, more than 32 million Americans moved.  While most decided to take on the hassle of packing up and moving everything themselves, 21% decided to hire professional movers. 

Unfortunately, many of those people got ripped off. 

The Five Biggest Moving Scams

1. Bait & Switch Pricing

In this moving scam, rogue operators provide you an estimate and in some cases “guarantee” to beat any other company’s quote. However, once they load all your possessions in their van, they jack up their price, claiming you had more goods than what is on the estimate!

These bad actors will demand additional payment up front. We’re talking thousands of dollars.  For customers who refuse to pay, it’s common for the movers to outright steal their property.

2. Spurious Extra Charges

In this scenario, the mover provides you an estimate, but then add as many additional costs that they can think of once they have your belongings in their possession. Needless to say, this completely invalidates the original estimate. Typically the new charges are triple the cost! If you want your things back, they demand you pay the full price or they will sell your belongings at auction.

3. Property Weight / Size

This is one of the ways scammers use your own property to rip you off.

Most legitimate movers charge you by the actual weight of your property. Experienced moving consultants who come to your home to look at what you are moving should come close enough in their estimate to what the actual scale will show. This is considered “professional.”

But the unprofessional, scammy movers do it differently. What they like to do is use “cubic feet.”

It’s easier for moving companies to overcharge you when they measure this way. I mean, how are you going to know? While there ARE some legitimate movers that use cubic feet, most states make this measurement illegal.

Rogue moving companies get around these laws by providing you an estimate based on the weight of your property. But once the property is loaded onto the truck, they’ll say you have more cubic feet than estimated. They’ll then charge you thousands for “taking up extra space” on the truck.

Another trick involving weight takes advantage of the requirement on interstate movers to weigh each customer’s shipment individually. When they do this, they SHOULD weigh the truck empty with a full tank of gas, THEN weigh it with your stuff loaded to see the difference. This is no trivial matter. Many of the moving trucks going state to state have fuel tanks that can hold hundreds of gallons of fuel.  Drivers weighing empty with less than a full tank can easily add over 1,000 pounds to the weight of your property, and you’ll have to pay the cost of that across every mile they drive.  So, always ask to see the driver’s the fuel gauge upon arrival, when the truck is empty. In fact, take a picture of it.

4. Unwittingly Hiring A “Broker” And Not An Actual Mover

Thanks to the internet, it’s easy for rogue operators in the moving industry to rip people off. These scammers, have great-looking websites and always offer rosey estimates. This is either done by phone or through an easy, hassle-free online questionnaire. 

There’s just one problem: You’ve reached a BROKER, not a moving company.  

Now, there are good moving brokers out there, and if they deal in interstate and international moves, they’re regulated by the federal government and have specific rules they must adhere to, such as:

• Be registered with the federal government
• Use only movers registered with the federal government 
• Providing customers the movers they use 
• And list their physical location, contact information and state they are a broker on their website and in all ads. 

(Complete rules for brokers: https://www.fmcsa.dot.gov/protect-your-move/movers-vs-brokers)

The good brokers follow these rules. The problem is there are a lot of fly-by-night outfits that want to ensnare bargain-hunting customers with prices too good to be true. These brokers then contact unscrupulous movers, including unlicensed or uninsured movers, to do the job. They’ll then charge you an upfront deposit, some as high as 50%. But that fee isn’t an actual deposit on your move. It’s your cost for using a broker! Some broker will even call you a few days before the move to demand additional dollars because the job is “larger than expected.” 

5. Delivery – Late, If You’re Lucky, Or Not At All

So the mover has come. They’ve loaded your property on a truck and promised to deliver it by a specified date. Maybe you get a phone call, maybe not. What is certain is the delivery date has come and gone and you still don’t have your property. 

One possibility: The truck has impounded by the US Department of Transportation due to licensing violations.

Here’s another: The movers tell you your items are stuck on a truck until they can make 3 deliveries before yours.

Or how about this one? The movers you hired quietly closed up shop and abandoned your property in a warehouse. 

Regardless of the reason, your items are going to be as many as several months late in delivery, or at worst, lost for good.

Why Is The Moving Industry Rife With Fraud?

Up until recently, states and the federal government weren’t interested in prosecuting these companies. Only in the last few years have aggressive federal regulations been put in place.

Not content to wait for the feds, state governments like Florida are stepping up.  

In December 2018, the Florida Attorney General announced a case against 14 Florida-based moving companies for deceptive marketing practices, property destruction, and holding customers property “hostage for ransom.”  The state also filed complaints against them with the US Department of Justice, prompting an investigation.

In August of 2018, the DOJ announced it had shut down a racketeering enterprise involving 12 people and 14 moving companies across the US. These companies defrauded more than 900 people between 2013-2018.  These companies:

• Lied about how long they were in businesses
• Created fake online reviews to get more customers
• Inflated prices after taking possession of property
• Stole the property of customers who refused to pay the exorbitant amount

Rogue moving companies prey on our inexperience and desire to save a buck. That’s why it’s important to do your homework when choosing a moving company.  Request several quotes to provide you a baseline on price and quickly weed out any outliers. Make sure you get everything in writing and understand the details of the contract before you sign. Ask the mover questions about the contract – they SHOULD be happy to answer them.  Finally, make sure the mover you choose is licensed and insured (more on “insurance” below in the Red Flags section).

If you see any red flags or don’t have a good feeling about the mover, walk away.  

How To Find A Good Mover

The first thing you do is check the mover’s license number with FMCSA (Federal Motor Carrier Safety Administration). Just remember that ALL intrastate moves – moving within the same state – are regulated by state authorities, not the feds. Still, good companies will also be registered with FMCSA.

Next, look up the mover’s BBB business profile. BBB has business profiles of more than 20,000 moving companies. Here you’ll find things like BBB’s grade, credentials, professional memberships, and of course customer reviews.

Then there is the American Moving & Storage Association created it’s ProMover Program. Designed as an effort to crack down on moving fraudsters, moving companies in the program are subjected to a background check and must meet certification standards. Consumers can use the free Mover Referral Service. If you already have a list of movers you are considering, the service can help verify if the movers are licensed and insured by listing the company carrier number. Or you can simply review a listing of all movers certified in the program, then pick one.

Keep in mind that clever crooks can have a federal license and still slip through the cracks. But there are clues to help consumers avoid rogue operators. 

10 Red Flags to Avoid Being Scammed

1. No company information: The mover’s website doesn’t have a physical address, the mover’s registration, or proof of insurance. 
2. Phone estimates only: Do not hire a company that will not come to your home to make an estimate.  It’s important to get an in-home, written and signed estimate by the companies you are considering for the move. In-home walk throughs are the best way to estimate the weight of your property and to make sure no furniture is missing. After the walk thru, the estimator will talk with you about required moving services, dates, and pricing. The whole process should take 20 minutes to 1 hour, depending on the size of your home. The AMSA, the moving association, recommends you get no less than 3 in-home moving estimates. Virtual walk thrus are available, too.    
3. Demands for a big down payment: While a small down payment is normal, especially during a busy season, most companies only charge around 10-20%. If they ask for considerably more, walk away.
4. Suspicious Bids: Be on the look out for bids that are too good to be true. A bid significantly lower than other bids is a huge red flag. Also, skip past companies that won’t put their estimate in writing.
5. Does not provide you a copy of “Ready to Move”: Interstate movers are required by federal law to provide you a copy of a federal brochure outlining your rights and responsibilities when you move and a checklist before your move.
6. Claims the quote for service will not change: Be wary of movers that tell you that the quote will not change. Mover quotes will change because the weight of your property is heavier than estimated.
7. Everything is insured!: Typical insurance coverage starts at $0.60 per pound. So that 100-pound antique clock your grandmother left you gets broken? You’ll get $60 for the damage. Same with the million-dollar Andy Warhol painting.
8. Cash Only: Choose only movers who accept credit cards. If the move goes badly, credit card company payments are insured. 
9. Unmarked Trucks: Don’t let movers load your property into an unmarked truck. Unmarked trucks are heavily linked to scams that steal your property or hold them ransom.
10. Amazing Online Reviews: Be wary online review sites, as scammers will load sites like Yelp with fake reviews. Instead, use the BBB’s website for reviews, or plug a mover’s name into a search engine with words like “complaints” and “fraud.”

The moving industry is riddled with bad actors. A 2020 investigative report by the Better Business Bureau – Know Your Mover – shows that scams are widespread, especially when moving from state to state. 

How widespread? 

In 2019, the FMCSA received 4,780 complaints, while the BBB received more than 13,000 complaints. Unfortunately, the Federal Trade Commission estimates that less than 10% of moving company victims file complaints with the BBB and federal and state enforcement agencies. That means more than 130,000 cases of fraud happening each year that goes unreported.

Stay safe, stay informed, and then Start Packing!