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Legitimate moving companies have to abide by strict state and federal requirements for things like credentials, state licensing, interstate USDOT numbers, insurance, and regular business practices like being listed on the BBB and having a legitimate office.
Still, there are a lot of moving scams out there today.
Impact of Moving Scams
Recent data shows that 2024 saw an increase in moving scams with the average victim losing $754. A study from 2023 showed the median average loss was around $100 higher.
There are many types of moving scams, the least destructive of which are “No-show” scams where fake companies take a deposit worth hundreds of dollars and then disappear, never actually following through with a moving service. In 2023 these represented 26% of all moving scams.
Unfortunately, many other moving scams have more profound and detrimental impacts like the “hostage” scams which all look something like a moving company showing up, packing up your goods, and then holding them hostage in exchange for exorbitant payout. These represented 24% of all moving scams in 2023 and regularly increase in prevalence during the summer months.
Common Moving Scams
There are three main categories of moving scams:
- No-Show
- Hostage Taking
- Last-Minute Fees
I’m going to look at all three of these in more detail and review how you can know if a moving company is legit and what you can do to avoid being victimized by these moving scams.
Scam #1: No-Show
Legitimate moving companies may or may not require an initial deposit, especially if you are setting up a payment plan, but they will never ask for a deposit before sending someone to your home to do a legitimate walkthrough. This walk through is an essential step in figuring out exactly how much stuff you have, what the estimated weight will be, and whether you have specialty items like pianos or motorcycles that require unique shipping methods or additional labor.
So, the no-show scam is the most basic and least harmful moving scam in terms of financial impact. However, it can still be detrimental to your planning process, your wallet, and your sense of security.
In this scam, companies demand a cash payment or deposit up front before they will initiate the moving process. As such, especially in the summer when you are busy and it takes a few days for other companies to get back to you, you might end up paying a few hundred dollars in a deposit to secure your place, only to find that that company never shows up.
What It Is:
This is a scam where a fake company will take an upfront payment or deposit and then never show up for the moving service.
How to Tell the Scam from the Legit Moving Companies
Legitimate moving companies will always send someone to do an on-site estimate or a virtual estimate so that they can provide a legally binding contract for both parties to review and sign prior to demanding any form of deposit or cash payment.
How to Avoid This Moving Scam
- Use a legitimate moving calculator like MoveBuddha to connect with vetted and verified moving businesses only.
- Do not hire any moving company that isn’t registered with the DOT. You can check their registration here.
- Get all information in writing from several movers. Remember that a reputable company will actually look at your property in person or through a teleconference before they send their estimate. Compare estimates from several companies to make sure that you don’t see any significant red flags or discrepancies between what is being quoted.
- Avoid any moving company that does not include an on-site estimate, especially one that demands any type of deposit or upfront payment prior to sending someone for an on-site estimate.
- Avoid any moving company that does not have a USDOT number or a physical business address.
Scam #2: Hostage Taking
Let me start by clarifying that when you get an estimate from a reputable moving calculator like MoveBuddha, it will stipulate that it is nothing more than an estimate, and you have to get your binding estimate by reaching out to the individual companies.
It is not uncommon for companies to give you an initial dollar amount range, for example between $4,000 and $10,000 for X type of move. However, after that they will send someone to your house to do a much more detailed calculus on what all you own and how much the final weight or volume of your move will be.
That final weight is the biggest factor in determining your legally binding estimate, the document that you sign.
In many states, like California for example, when you sign that legally binding estimate the moving company is not allowed to charge you more than 10% above that estimate, no matter how much the final costs of your move amount to in the end.
That’s partly why they send someone to your house so that they can get a more accurate estimate and circumvent the risk of undercharging you by a significant amount through that legally binding contract.
So where is the scam?
Disreputable companies will not honor this legally binding process.
Instead, they will give you an estimate, load up your stuff, and then demand thousands of dollars more than what was originally quoted. In many of the cases reported to the DOT or FTC, those scam companies might steal your belongings or sell them at auction if they don’t get the money immediately.
What It Is:
This is a scam where a fake moving company packs up your belongings and then demands a higher payment which, if unmet, means they will sell your belongings.
How to Tell the Scam from the Legit Moving Companies
No reputable moving company will demand an upfront additional payment after they have boxed and loaded your goods. They will sign a legally binding bill of lading that explains each and every line item you will be charged.
How to Avoid This Moving Scam
- Always have your moving company do a walk-through and a legally binding contract.
- Do not hire any moving company that demands a large deposit or cash before your move.
- You can reach out to your state consumer protection offices to look at local and state moving company requirements, so you can check them against the company you are hiring.
- Ask your potential moving companies what they charge for insurance and what they will pay you if anything is damaged, and get that in writing. Contact their insurance company directly to verify the coverage they have.
Scam #3: Last-Minute Fees
It’s not uncommon for moving companies to charge additional fees within the terms of the agreement you sign after they do the initial walkthrough.
This bill of lading that you can review before signing will have a section indicating “additional services” or something to that degree. Here you might see check boxes or line items to insert pricing for things like:
- Long carry charges
- Fuel surcharges
- Bulk item charges
- Stairs
- Pianos
- Motorcycles
- Gun safes
It is not a scam for a moving company to charge small service fees if, for example, they do a walk-through and they see that you have a piano and an oversized gun safe.
However, legitimate companies will be open and honest about this additional fee before you sign anything, will show you the cost and where it is indicated on your bill of lading, and you will know before you sign a contract, let alone have them pack up your goods.
Scam movers will pack up your goods and then add hidden fees anywhere they can, even amounting to multiple times the cost of your original agreement. Much the same as the hostage scam, they will demand that you pay this exorbitant new amount or they sell your goods. Know that this invalidates your original agreement and is completely illegal.
What It Is:
This is a similar scam where a fake moving company packs up your belongings and then demands a higher payment for last-minute fees averaging three times the original agreement which, if unmet, means they will sell your belongings.
How to Tell the Scam from the Legit Moving Companies
Legitimate moving companies will have a section in your initial agreement for additional services, but those will be reviewed and often estimated before you sign the document.
How to Avoid This Moving Scam
- All legitimate moving companies offering full service will come to your house to check whether you have items that necessitate an additional cost and they will talk it through with you beforehand.
- Do not hire any moving company that asks you to sign paperwork with blank spaces for important information including services, prices, dates, or signatures.
Using a Verified Partner Network
While there are a lot of things you can do after you’ve been connected with a company to make sure they are legit, the most important thing is to start on the right foot by using a moving calculator service that connects you to potential movers in your state, but only movers that have been vetted and verified.
I always recommend MoveBuddha because they have a proprietary vetting process and verified partner network. So any company you see listed when you use their moving calculator tool is a legitimate company. You can always back track and check out the USDOT numbers, physical addresses, BBB pages, and other resources to verify the legitimacy of the companies you see listed.
Summing Up
Unfortunately, while there are dozens of legitimate moving companies, there are also dozens of moving company scams. These scams might result in small losses upwards of $800 on a fake deposit but they could also mean losing all of your goods.
That’s why it’s imperative that you always start with a verified partner network when you are comparing different moving companies. From there, make sure that any company you are considering is one that you have verified yourself through third-party measures like USDOT numbers and BBB pages. Look for detailed information on their reviews if any, their physical address if any, and their insurance carrier if any.
Never sign any document that has blank spaces for things like prices or dates or signatures. Get everything in writing and only trust those companies that will send someone to your home or do a virtual tour to give a qualified estimate.
If you see any behavior that might be a red flag or indicate a potential moving scam, be sure to report it to the FTC or DOT.