Moving is something people may do only a couple of times throughout their lives. For this reason, many first-time movers or people who haven’t moved in several years may not be aware that this industry is not immune to scams and scammers, especially when it comes to moving companies and moving services. The moving services industry is estimated to be valued at around $19 billion dollars annually. With this much money changing hands, of course there will be scammers looking to get in on the action.
There are several different types of scams that people should be aware of when hiring a moving company. While some of these scams represent outright fraud, others tend to be more related to bad business practices.
One common scam associated with sketchy moving companies is receiving a low-ball estimate on how much you’re going to get charged for the move. To lure customers, the company will offer incredibly cheap quotes, often much lower than legitimate companies. However, once the move is completed or your belongings are loaded onto the truck, the company increases the price significantly, citing hidden fees, additional charges, or unexpected costs.
In more extreme cases, dishonest movers may hold your items hostage until you pay a much higher amount than originally agreed. This scam typically happens when the company demands payment upfront for delivery or refuses to deliver your items unless you pay more money. Some unscrupulous moving companies might trick you into signing a non-binding contract that allows them to charge more than expected. Alternatively, they might use a binding contract with hidden terms or excessive fine print, leading to inflated costs or surprise fees.
Another type of moving services scam involves scammers setting up fake moving companies using names similar to legitimate businesses to deceive people. These companies often operate without the proper insurance or licenses and may disappear with your belongings once they’ve been loaded onto the truck. Good luck trying to ever locate these items again. Also, if you signed up for their services on a fake website, they may have stolen more than just your furniture.
Another scam of sorts involves moving companies damaging or losing your items and then refusing to take responsibility for the losses. In some cases, movers may also claim that your items were already damaged, even if they weren’t, leaving you without compensation. While this tactic is more of a bad business practice than an outright scam, it does happen and is something you need to be aware of.
The Best Ways to Avoid Falling Victim to a Moving Scam
- Look up customer reviews, check ratings on sites like the BBB, and ask for referrals from friends or family.
- Obtain quotes from at least three companies to compare prices, and ensure they provide detailed, written estimates.
- Make sure the company is licensed with the appropriate authorities and offers adequate insurance coverage. Legitimate moving companies should be registered with the Federal Motor Carrier Safety Administration (FMCSA).
- Ensure the terms of the contract are clear, and avoid companies that pressure you into signing an agreement on the spot.
- Opt for well-known, established companies with a reputation for reliability and customer satisfaction.
- Always request an in-person or video estimate, and ensure the company provides a detailed, written breakdown of the costs.
- Be cautious of companies that offer unusually low rates or refuse to give an estimate in writing.
- Never pay the full cost of the move upfront—try to pay only a deposit, with the balance due after delivery.
- Before the move, take inventory of all your items and document their condition with photos.
- Be cautious of companies that offer “verbal contracts” or vague terms—ensure everything is documented.
- You should keep any personal items of value with you during any move in order to avoid these items getting lost in the process.
Here is some more information from the FTC on avoiding moving scams.
