Moving is a major life event, often filled with excitement and stress as you pack up and transition to a new place. But amidst all the planning and preparation, it's essential to remain vigilant because some dishonest movers and scammers may try to exploit the situation. Fortunately, it's not too difficult to protect yourself from becoming a victim. By learning to recognize red flags and understanding how these scams operate, you can confidently choose a reliable moving company; this ensures your journey to a new home goes smoothly. In this article, we'll guide you through the warning signs and steps to safeguard your move.
How Moving Scams May Work
What does a moving scam look like?
The worst-case scenario is the “hostage shipment,” in which a company will essentially hold your belongings for ransom. They’ll refuse to unload the truck unless you pay more than the originally agreed-upon price. That essentially forces you to pay up since most of your property is in their possession. You can report it to the police, but you’ll need proof after the fact.
To set up the hostage shipment, a company might give you a very low estimate to tempt you into choosing them; the real price will then be revealed when they have all the leverage. On the other end of things, a company may suddenly reveal hidden fees or fraudulently over-estimate weight and other factors as an excuse to overcharge you.
A company may not wait until they have your belongings to spring the bad news on you. But, even in these situations, the moving company may have a lot more leverage than you do. If it’s the day of your big move, you’ll be under a lot of pressure to accept extra charges.
Another scam is the “no-show” scam. A moving company — perhaps even a completely fictitious one — will take a large up-front deposit and then cancel or no-show your big move. If you’re dealing with a sketchy or fraudulent company, good luck getting your deposit back!
With moving companies, the line between outright fraud and sketchy business practices can be murky. Consider another, somewhat less insidious outcome: Your belongings arrive damaged. A sketchy company may simply do a poor job and refuse to compensate you for damage. Under movers insurance, you have only nine months to file a claim. After that, the company is no longer liable for damaged goods. Even if you report it in that time frame, you’ll need evidence to support your claim.
How to Avoid Falling for a Moving Scam
Research the Company, Check Its Website, and Read Reviews
This is the common-sense factor mentioned above. If a company has seemingly sprung up overnight with rates that sound too good to be true, they probably are. Do an online search to see if there are any reviews of the company. Of course, a brand-new company may not have much presence. Also double-check the company’s website to see if they have any testimonials.
A detailed website is one of the most valuable pieces of evidence in checking for credibility. Does the website have any reviews? Is there an address for a brick-and-mortar location? Are there any photos? When a website is missing those, it could be a sign that the company isn’t legit.
Try calling the company’s phone number, too — does a human or robot pick up. If it’s the former, do they sound professional? Do they say the company's name, or is it some generic greeting instead? Do they insist you pay without a proper in-home estimate? Those are indicators that you’re dealing with a scam or shell company.
Of course, you shouldn’t just take a company’s own website as proof of its reliability. Another good place to find reviews is a website like Yelp. Companies may handpick the reviews to feature on their websites, giving a false impression. Yelp and other review aggregators don’t delete negative reviews. That will give you a better, more accurate look at a company’s reputation. If someone has been scammed, they likely will have shared their experience.
Finally, just Google the company’s name. Have they made the local news (and, if so, was it for a good or a bad reason)? What do people on Reddit and other message boards think of this company?
Check for an FMCSA License
Here’s a group you’ve probably never heard of: the Federal Motor Carrier Safety Association (FMCSA). It regulates the trucking industry, from moving companies to freight groups. Any moving company worth its salt will have a license with the FMCSA. If the company doesn’t have a license, it’s very likely the company is a fraud. You can check current license statuses on the FMCSA website database.
Ask How They Charge
Most reputable moving companies use rates to calculate how much their services cost. There may be some type of hourly rate or charge per mile traveled. The most common — and important — rate is for the furniture. If the company is legit, it will likely charge by weight. Scam companies are likely to charge per cubic foot or meter. That’s one of the most common scams, since a light object may take up a lot of space in the truck. When you get an estimate, double-check how they calculated the fee. If it’s done by size, walk away.
Read the Contract
Any time you hire a company, you will likely need to sign a contract regarding pay, damage clauses, and other liabilities. It’s beneficial for both the company and customer since there’s a legally binding document if one fails to deliver on their service or pay. Before you sign, read the contract thoroughly. A less-trustworthy company may sneak in clauses and conditions that haven’t been discussed. If that happens, bring it up with the company’s representatives. If they try to play coy or lie about it, it’s time to find another provider.
Another tactic scam companies pull is having you sign a contract — or even pay — before they do an in-house estimate. Signing on the dotted line locks you into hiring them, allowing them to overcharge with impunity. As for pay, how can they charge you fairly if they haven’t even seen the house yet? Remember: The contract is there just as much for your safety as it is theirs.
Meet Face to Face
In the age of Zoom chats, meeting face to face may seem like an unnecessary risk. When it comes to moving, however, the opposite is true. A moving company needs to see your home and the items you’re moving to provide an accurate price. If a company offers a rough estimate over the phone or online, there’s probably nothing to worry about. If they refuse to come over and only make agreements over the phone, however, it’s likely you’re dealing with a scam.
Inspect Their Trucks
Here’s an easy-to-miss but surefire way to tell if a company is sketchy: They rent their trucks. After all, why would a moving company need to rent trucks from another company? They should at least have a few of their own. They may have a legitimate reason for renting a truck — maybe theirs are out on other jobs due to overbooking — but that’s uncommon. If your moving company shows up with a rented U-Haul, do everything you can to prevent the move from happening.
Stay Calm and Use Common Sense
As with many scams, moving scams often rely heavily on promises that seem too good to be true. If you get an incredibly low estimate, ask yourself why. Do your research. Plus, don’t lose your head when you sense an opportunity to enjoy some big savings. Remember the old adage: If it sounds too good to be true, it probably is!