Moving Fraud Prevention Guide: Protect Your Move

Fraud is defined as deliberate deception intended to result in financial or personal gain. Various fraudulent schemes have been devised throughout the years to take advantage of unwary folks and credulous consumers. In recent times, however, cons and scams have been propelled to unprecedented levels – the busy modern-day life and the widespread use of the Internet for shopping, product and service research, and financial transactions have opened the doors for new types of fraud and extortion plots.

Moving fraud is just one of the many examples of deceit that result primarily from lack of careful research. As a matter of fact, nearly all victims of moving scams report that they have found low-cost moving companies on the Internet and hired them without further scrutiny.

That being said, you can very well use the Internet to find good movers for your relocation without falling prey to scams and swindles – you just need to be careful and learn to recognize the red flags of moving fraud, so that you can avoid rogue movers and prevent fraudulent attempts.

Not sure how to detect moving company frauds and protect your move? This detailed moving fraud protection guide will provide all the answers you need to ensure a scam-free relocation.

What are the most common moving frauds?

Moving scam artists come up with different creative ways to rip off unwary customers but most of the trickeries fall into one of the following fraud scenarios:

Fake references

Rogue movers usually use false references (fictitious testimonials written by their own employees, fake moving reviews, etc.) to pull the wool over their potential customers’ eyes. Some companies even try to hoodwink customers by constantly changing their business names, so no one can keep track of their activity and discover past scams.

So, when considering hiring a mover for your relocation, you’re strongly advised to check the company’s ratings first. Look for online moving reviews of the same company on several different reputable platforms (such as Yelp and MyMovingReviews) and try to get in touch with people who have actually worked with the movers – so you can hear their real opinions and feedback.

Unrealistically low estimates

It is sharp practice for fraudulent movers to offer low-ball estimates in order to lure heedless customers. Once they secure the job, they either disappear with the money from the deposit or charge exorbitant extra fees for some alleged additional services or unforeseen difficulties during the move.

In order to avoid bad financial surprises during your relocation, you’re advised to request binding in-house estimates from several reputable movers and carefully compare the offers – consider not only the final price, but also the included services, special conditions, timeframes, and other relevant details. Choose the movers that offer the highest quality service at the most reasonable price and be sure to research them carefully before signing a moving agreement with them.

See also: Types of moving estimates

Large deposits or advance payments

Some unscrupulous movers may request a very large deposit or hefty up-front payments in return for a convenient pick-up or delivery time or some other “special favors”.

If you fall into the trap, you will probably never see your movers – and your money – again.

So, when shopping around for movers, keep in mind that the requested deposit should not exceed 10-15 % of the estimated final moving cost and you should be able to pay with a credit card (not only in cash).

See also: Moving company deposits – all you need to know

Special clauses in the fine print

Never sign a moving contract without having carefully read all its clauses first!

Pay special attention to the fine print – it often states that the guaranteed price of your move is subject to change under certain circumstances. Many moving company frauds are based on this simple trick – the movers claim that the job took longer or was more complicated than expected, so you will have to pay much more than initially estimated.

To avoid such swindles, you need to make sure that all the required accessorial services, as well as any special conditions related to your move, are clearly stated in the Bill of lading.

Related: Understanding the movers’ paperwork

Blank or incomplete documents

Reputable movers will never ask you to sign blank papers.

Be sure not to fall for such a blatant trick – the consequences will be dire.

Non-professional labor and equipment

Some shady moving companies may send inexperienced workers and/or rented trucks in poor condition over to your place – and thus put your entire move at risk.

Moving brokers may sell the job to third-party affiliates, leaving you with no idea who will be actually handling and transporting your treasured possessions.

To make sure you’re working with competent and experienced moving professionals, you need to carefully research the company (credentials, resources, track record, professional practices, etc.) and request information about any subcontractors before making your final decision.

Related: Fundamental questions to ask when hiring a moving company

Extra fees

The additional services a moving company offers are not automatically included in the estimate, so dishonest movers may deliberately perform a variety of unnecessary services to soak up whatever they can out of your pocket.

To avoid such last-minute fraudulent attempts, you’re recommended to discuss any special requirements and possible difficulties with your movers in advance and not agree to any services that are not explicitly stated (together with their respective charges) in the Bill of Lading.

See also: How to avoid extra service fees

Holding goods hostage

One of the most common moving extortion schemes involves household items being held hostage in demand of more money – the unscrupulous movers will refuse to release your belongings until you pay some exorbitant extra charges for whatever ridiculous reasons they come up with.

The only way to avoid such outrageous moving frauds is to carefully research your chosen movers before hiring them (check the company’s registration and its complaint history) in order to make sure that you’re dealing with legitimate and trustworthy professionals.

Stolen items

Even if you’ve had quite a smooth and trouble-free relocation experience, your most expensive belongings may turn out to be missing upon delivery. In case your shipment contains plenty of valuable items, the rogue movers may even disappear with all your belongings. You may receive some preposterous excuses from the moving company, such as a fire in the warehouse where your goods were kept or a moving truck robbery, or you may simply not be able to reach them at all.

Unless your precious possessions have been properly insured and explicitly declared in the inventory as high values articles, the moving company will only assume liability for 60 cents per pound per lost or damaged item.

Also, have in mind that if you fail to notice and immediately report a missing piece when receiving your shipment, the moving company will deny any liability at all.

To prevent such problems, make sure you provide adequate protection for your valuables and check them carefully upon delivery to verify that nothing is missing or damaged.    

Must-read: How to choose a moving company

What are the red flags of moving fraud?

If you can spot the red flags of potential moving scams while shopping around for movers, you will have a fair chance to avoid shady companies and protect yourself from moving fraud.

Here are some warning signs to watch out for:

• No specific information (company name, license number, insurance information, physical address, etc.) listed on the company’s website;
• The company does not have a valid DOT number or MC license (so the movers are not legitimate) or its license is less than 3 years old (which means that the movers haven’t been in business for long, so they may lack experience and the required know-how to perform a smooth move);
• Poor online profile – lack of a professional website (or a poorly built one), no social media accounts, negative moving reviews, etc.;
• The movers answer the phone with a generic term (“moving services” or “moving company”) instead of an actual company name;
• The company’s offices and warehouse are in poor condition (or simply don’t exist);
• There are plenty of serious complaints against the company and a number of severe problems reported by previous customers;
• The company refuses to perform a visual survey of your home and gives you an estimate online or over the phone. Such an estimate can never be accurate, so you’re in for a bad surprise come Moving day;
• The company agrees to give you an on-site moving estimate but the representative who comes to your home does only a quick walk-through of the place without asking questions or taking notes. Your own questions are given elusive answers and you get no definite information about the company, its rates, or the specific details of your move;
• The company offers a “too-good-to-be-true” estimate;
• The company requires cash up front or demands an exorbitant deposit;
• The movers ask you to sign blank or incomplete documents;
• The movers don’t provide you with the booklet “Your Rights and Responsibilities When You Move” as required by law;
• The company does not offer information about insurance and/or does not offer full-value replacement valuation;
• The movers show up in a rental truck on Moving day (not a company-owned or marked fleet truck);
• The movers ask you to sign a new estimate on Moving day because of some unforeseen conditions (unexpected difficulties when handling your possessions, higher charges for this particular period of the month or day of the week, etc.).  Have in mind that once the movers begin loading your belongings, the original estimate has been affirmed, so the company has no right to change the price any further. If you agree to sign a new estimate after your goods have already been loaded onto the truck, you’re falling victim to moving fraud out of your own will;
• A third-party company arrives to pick up your goods on moving day. Unless you have been informed of subcontractors (and researched them) beforehand, you should send the truck away and demand an explanation from the moving company you have hired.

How to protect yourself from moving fraud

Now that you know what to be aware of, it’s time to discuss some proven moving fraud prevention techniques that will help you protect your move and ensure a smooth and trouble-free relocation process:

1) Get reliable references – A moving company can easily provide fake credentials, so it’s best to look for word-of-mouth referrals and testimonials. Ask friends and acquaintances for recommendations, use the social media and different local forums to get feedback from people who have recently moved house, get lists of reliable movers from local or national movers associations, ask your realtor about the best moving companies in town, etc.

2) Research the company’s online profile – As already mentioned, you should carefully research your chosen company’s online presence and reputation before hiring it. You can find a number of useful clues (warning signs or evidence of trustworthiness) on the company’s website, its social media pages, and other online resources.

3) Verify the company’s licensing and insurance information – Check your chosen company’s registration with the FMCSA and carefully research its professional affiliations.

4) Find out all the relevant information about your chosen movers – The company’s name and address (as well as all the names the company “does business as,” together with their state and federal license numbers), its local affiliations, how long they have been in business, what kind of liability coverage they provide, what extra services and storage options they offer, etc.

5) Check the company’s complaint history – Research the databases of ProtectYourMove.gov and MovingScam.com to learn about reported problems and complaints against your chosen company and find out how claims and disputes have been resolved in the past.

6) Visit the company’s office in person – Pay an unexpected visit to the company’s office and/or warehouse to find evidence of trustworthiness (well-kept premises, professional equipment, moving trucks in good condition, motivating and dynamic working environment, friendly and open attitude, etc.) or vice versa.

7) Know your rights and responsibilities well – Read the federal booklet Your Rights and Responsibilities When You Move to learn some practical tips and get useful warnings when planning your move.

8) Request an on-site binding written estimate – Have a representative of the moving company come over to your home for a visual survey and discuss all the details of your move with them. Request a binding written estimate and make sure everything you have discussed and agreed upon is clearly stated in the document (including any required extra services and their corresponding rates).

9) Make a detailed inventory of your belongings – Make sure your moving inventory sheet contains not only the type and number of items you’re placing in the movers’ custody, but also a clear statement about their current condition and estimated value (together with adequate proofs – photos, warranties, maintenance receipts, authenticity certificates, etc.).

10) Make sure you understand the movers’ paperwork and agree with all the clauses in the Bill of Lading before signing it. Keep a copy of all the important documents for yourself.

11) Ask about your valuation options and choose the type of liability coverage that is most appropriate in your case.

See also: Types of moving insurance

12) Discuss payment methods – Using a credit card will help you fight fraudulent activity, so it’s recommendable to avoid paying in cash when possible;

13) Do not entrust valuables to movers – However trustworthy your movers may be, it is a good idea to move your most valuable items yourself (unless they’re too bulky or too heavy, of course). This way, you will ensure your peace of mind and will avoid various troubles down the road.

See also: Items you should not entrust to movers

14) Supervise the loading and unloading of your household goods – Make the necessary arrangements to be present both on move-out and move-in days so you can supervise the moving process in person. If that is not possible, ask a close friend or a relative to act on your behalf.

Bonus advice: Be careful to prevent identity theft, among other things.

Keep in mind that you have nine months to report any problems to the moving company and file an insurance claim. Here is the recommended course of action if you become a victim of moving fraud.

Last but not least – don’t forget to write a moving review to expose the rogue movers, share your insights, and help others prevent moving fraud!