Beware of These Scammers the Next Time You Move.

It’s June, moving season is in full swing , and with it moving scams. Moving to a new home is always stressful, but there are steps you can take to avoid falling for a job scam that will make it a lot worse (and even more expensive ).

According to a Newsweek report released earlier this year, moving scam cases doubled between 2015 and 2022, putting the Department of Transportation (DOT) in a hot spot. The government agency has been accused of issuing literal “licenses to steal” to shady transportation companies, renewing their business licenses after they were accused of fraud. DOT responded by promising to take tough action, but instead of counting on it to protect you, it’s better to know what to watch out for for yourself.

How scams work

The most common moving scam involves a broker and not an actual moving company (brokers are also licensed by the Department of Transportation but are subject to less control and oversight than moving companies). The moving broker requests the client, plans the move, and then hires a mover to do the actual work. The broker will give clients a “score” and ask for a deposit that is much lower than legitimate competitors. Once the client’s belongings are in the truck, the broker will demand an additional exorbitant fee or provide the client with a new invoice that is double or sometimes triple the original estimate. Essentially, the customer’s belongings are held hostage until they pay.

The scammers perpetuate their schemes by practicing what the DOT calls “reincarnation.” In short: The scammer invents, buys, or asks friends and family to create fake business reviews and acquire a license that places them on the “trusted list” of DOT-approved companies. They then lure clients in with incredibly low valuations and inflate prices once the work is actually done. Eventually, real negative reviews start to crowd out fake reviews. At this point, the scammers rename the company and repeat the cycle.

Moving company red flags to look out for

Florida is the state with the most reported moving scams , likely because it costs just $750 to open an LLC with a DOT-approved brokerage license. Florida Attorney General Ashley Moody’s office fights back with a list of trucking company red flags to look out for :

• Dealing with a broker rather than directly with a carrier : Many brokers advertise online and confuse consumers by presenting themselves as a real shipping company and not a third-party broker. Often, these brokers unreasonably require consumers to pay a move deposit before the carrier has accepted the job and before the actual cost of the move has been determined.
• Invisible Estimates : If moving companies or brokers provide an estimate without going through customers’ personal effects or asking for a detailed list of what will be moved, the actual cost of the service may skyrocket on the day of the move.
• Estimates Too Quick : Be careful of those who give an estimate without taking into account cabinets, cupboards and other storage space – they may be trying to offer a lower price that will increase significantly after the truck is loaded.
• Full payment requirements prior to move : Payment for the move is generally required when your property is delivered, not before. If the company requires full payment before moving, it could be a scam.
• Company name change . Before hiring, carefully research company information, including keeping track of the federally required information package they must provide to clients upon request. Fake companies may not provide this information because it will show that they regularly change their company name after being exposed.
• Surprise Storage Fees : Some companies claim to offer door-to-door moving services when in fact they use multiple movers to move your property around the country. Sometimes a storage fee may be charged en route if the property needs to be placed in storage. Be sure to ask the shipping company if they will personally handle the move from pickup to delivery.
• Other Unforeseen Fees : Be sure to inquire about any possible fees that may apply before agreeing to pay. While not always a scam, a fee can be added to the cost of the move for a variety of reasons. Moving companies may charge additional fees to consumers who live on the second floor or above, or who do not provide their own boxes or materials for the move. You must be informed of these fees before they are incurred.
• Defective or Inaccessible Documents : Be sure to obtain all proper documents and check their validity. If a company promises insurance, be sure to read the policies.
• They don’t accept American Express or Discover cards: brokers know when there’s a payment dispute, these card providers usually give preference to customers so they refuse to accept them . Instead, they insist on non-refundable deposits through Zelle, Cash App and bank transfers.

How to exercise due diligence when choosing a moving company

Fortunately, there is a lot you can do to spot these scammers, although no practice is foolproof. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) offers a tool that allows you to search for information about a company’s headquarters, registration status, complaint history, and safety records—simply look up the passenger carrier’s company name or USDOT number on the FMCSA website .

You can also check if a broker or transport company is Better Business Bureau (BBB) ​​accredited, or just start your search using the BBB accredited list of companies . (Newsweek also compiled a list of the transport companies that received the most complaints in 2021 and 2022, so make sure yours isn’t on it.)

Finally, always get estimates, quotes, and contracts in writing.

Beware of fake reviews

Being able to spot fake reviews can also help you avoid a scam company before you even call them. The Public Interest Research Group (PIRG) recommends paying attention to the following red flags:

• Reviewers with no prior reviews . As a rule, real reviews come from people who have left many other previously published reviews that are visible to everyone on the Internet. Fake reviews often come from people who have only posted one review online, or have many reviews ostensibly posted, but they are all private.
• Suspicious dates : Check the dates in the reviews. If many reviews have been posted within a short period of time, this may be a sign that the reviews have been bought or fraudulently generated.
• Language matters . Fake reviews are often vague or general, while real reviews are more direct and specific.

How to report moving fraud

If you find yourself involved in fraud, please report it to the BBB here and the FMCSA here . You can also file a complaint with the BBB , which will then mark your complaint on the company’s report; You can use this as proof of damage when you dispute a payment with your bank.

Find more resources to protect yourself from moving scams at the FMCSA website .