Moving is an unfamiliar and overwhelming process for many people, and scammers are all too willing to take advantage of the situation. Moving scams can take many forms, from providing vague information or unrealistic estimates to demanding high cash deposits or holding your belongings hostage. You can protect yourself by learning how to tell if a moving company is a scam. In this article, we’ll walk you through the red flags that give fraudulent moving companies away.

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Vague Information

Reputable moving companies provide clear and detailed information to their customers. If a company provides vague information and dodges your follow-up questions, you can assume they’re hiding something. A lack of transparency could mean the mover is unaware of best practices, dishonest, or indifferent. Perhaps the company isn’t engaged in deliberate fraud, but not knowing or caring about the details isn’t a good look, either.

Here are a few examples of suspicious information:

• Changing names: Legitimate companies value consistent branding and name recognition. Rebranding for no apparent reason or closing and reopening under a new name could be an attempt to evade accountability for past issues.
• Generic email address: Representatives for well-established companies usually have email addresses like “name@companywebsite.com” or  “info@companywebsite.com.” Using only generic email addresses could be a red flag.
• No physical address: Legitimate companies typically list a physical address on their website. Beware of companies that only provide a P.O. box.
• Rented moving trucks: Real moving companies have their own trucks. Showing up with a rental truck rather than a branded or company-owned moving truck is a red flag.
• Vague phone greeting: Beware of companies that answer the phone with a vague phrase such as “Moving Services” instead of the specific company name.

Familiarize yourself with state and federal laws so you know what’s normal or required for moving companies. Interstate movers must comply with regulations set by the Federal Motor Carrier Safety Administration (FMCSA). During the planning phase, for instance, they must provide customers with a copy of “Your Rights and Responsibilities When You Move.” Your state may have similar requirements for local movers.

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Bad Reviews

Even the best moving companies have at least a handful of bad reviews, but a pattern of negative feedback is concerning. The Better Business Bureau (BBB) website is a helpful place to start researching movers. In 2022, BBB received more than 15,000 complaints against moving companies. In addition to displaying customer reviews and complaints, BBB lists how many years a company has been in business, notes whether it is BBB accredited, and assigns it a BBB rating.

You can check other reputable review platforms, such as Yelp, Google Reviews, and Trustpilot. Look beyond the overall rating and consider the specific experiences shared by customers. Be cautious if negative reviews consistently mention overcharging, poor communication, lost or damaged items, or a failure to deliver services or shipments as promised.

Check whether and how the company has responded to negative reviews, too. This provides some insight into their transparency and willingness to resolve problems.

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Secrecy Around Licensing and Insurance

A legitimate moving company should be transparent about its licensing and insurance, which play a critical role in ensuring the safety of your belongings. Interstate movers must register with the FMCSA and obtain a USDOT number from the U.S. Department of Transportation. Most states also require local movers to obtain a USDOT number. Regulators use these numbers to track safety compliance and make that information available to consumers via the FMCSA website.

The FMCSA also requires interstate movers to offer two types of liability insurance, or valuation coverage. Full-value protection is the default option and covers the replacement value of lost or damaged belongings. Released-value protection is free but only covers 60 cents per pound. Movers should also carry worker’s compensation insurance, and many offer additional valuation coverage for those who want extra protection.

Your state may have its own requirements regarding insurance and licensure. For instance, moving companies may have to be bonded in some states or carry a specific amount of insurance. If a company doesn’t provide proof that it meets state and federal requirements, you can assume it’s out of compliance.

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Unusually High or Low Estimates

When a moving company provides an estimate that seems too good to be true, it usually is. Lowball quotes are a common tactic used by fraudulent movers to lure in customers. Once your belongings are loaded onto their trucks, these scammers may drastically increase the price and hold your shipment hostage until you pay. 

Unusually high estimates are less common but may happen. If you have to move by a certain date, you may be tempted to go with the first company you find. Without other quotes or past experience to provide context, inexperienced customers may not realize they are being taken advantage of.

Approach estimates provided over the phone or online with caution. Legitimate movers generally insist on conducting a thorough inspection or inventory of your belongings before giving you a quote. This process allows them to estimate the weight and volume of your belongings, note any obstacles, and provide a more accurate quote. Companies may schedule an in-person consultation or allow you to submit a detailed inventory or video walk-through of your home.Avoid companies that provide an estimate based on cubic feet. The moving industry standard is to provide estimates based on weight, particularly for long-distance moves. Pricing by cubic feet can be misleading, and unscrupulous movers often use this method to inflate costs.

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High or Cash-Only Deposits

Large deposits are unusual and risky—particularly if the company demands that you pay in cash. Rogue movers can use this up-front payment as leverage, or they may simply take the money and disappear.

Reputable movers may ask for a small deposit to secure your moving date, but this is typically a modest portion of the total cost. They accept multiple forms of payment that are more secure and traceable than cash. We recommend paying any deposit with a credit card, if possible. Not only will this create a paper trail, but your credit card company will help you fight fraud.

Always clarify the payment terms in writing before hiring a moving company. Ensure your moving contract explicitly states when, how, and how much you need to pay. It should also detail any refund or cancellation policies.

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Shady Contract

Your moving contract serves as a formal agreement between you and the moving company regarding the cost, terms, and services for your move. Here are a few red flags that indicate you should look elsewhere:

• Missing details: Ensure your contract covers every aspect of your move. Don’t sign a blank contract or one with missing details or incomplete sections.
• Suspicious timing: Moving quotes should be based on a thorough evaluation of your belongings. Don’t sign a contract prior to an in-home estimate (or something equivalent).
• Vague language: Legitimate contracts are clear and detailed. Look out for vague language that the company could use as a loophole later.
• Verbal agreements: A verbal agreement or handshake is not sufficient. Always insist on a written estimate and a formal, signed contract.

Review the contract carefully before signing. It should clearly outline everything you discussed with the moving company, from the total cost and payment schedule to your moving date and any additional charges. Don’t hesitate to ask questions or walk away if something seems off.

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Changing Estimates and Amount Charged

Your final moving bill may not match the initial moving estimate for several legitimate reasons. Non-binding estimates may change if your belongings are heavier than anticipated. A binding estimate provides a guaranteed price, but only if you make no significant changes. If you add items or need services beyond those listed in the contract, you will have to pay extra.

Still, the price quoted after an in-home inspection should be fairly stable, regardless of which type of moving estimate you receive. Be cautious of movers with customer reviews that indicate they frequently change their estimates or charge significantly more than their initial estimates. Other warning signs include last-minute changes on the day of your move, when you may feel more pressure to agree, or suddenly switching from a weight-based to a cubic-foot-based estimate.

Ensure that the agreed-upon estimate, its basis, and any additional charges that may arise during the moving process are outlined in your moving contract. This provides a reference point and legal stand should your mover try to increase the price unfairly. If the mover demands more than the agreed-upon amount without a valid reason or introduces new fees on moving day without prior discussion, you may be dealing with a scammer.

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Unprofessional Behavior

Unprofessional behavior doesn’t always mean you’re the victim of a scam, but your moving experience may be unpleasant.

Here are a few examples specific to the moving industry:

• Changing points of contact: If you find yourself constantly dealing with different representatives without a consistent point of contact, the company is disorganized at best. At worst, it’s attempting to avoid accountability.
• Delays or excuses: Consistent delays or a string of excuses indicate that a company is unreliable or disreputable.
• Evasive communication: Providing vague responses rather than clear answers to your questions could indicate intentional deceit.
• High-pressure sales tactics: If a moving company is aggressively pushing you to make quick decisions or sign immediately, it may be trying to prevent you from researching its reputation.
• Holding items hostage: Demanding additional payments to release your belongings once they are already loaded onto the truck is a common scam tactic and a serious violation of consumer rights.
• Rudeness: Rude or dismissive behavior from the company’s representatives often reflects an overall lack of quality and customer service.

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Our Conclusion

Moving to a new home can be an exciting yet stressful time, especially given the potential for fraud. Information is your best defense against common moving scams. Signs of a possible scam vary, from vague information and consistently bad reviews to shady contracts and suspiciously high estimates. 

Vet potential moving companies as thoroughly as possible, get everything in writing, and be on the lookout for the red flags listed in this article. Make use of the resources provided by federal agencies and consumer protection organizations, including BBB and FMCSA. By educating yourself and staying vigilant, you can navigate the moving process with confidence.

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FAQ About Moving Company Scams

Is it normal for a moving company to ask for a deposit?

Some moving companies require a deposit. However, it isn’t normal for a moving company to ask for a large deposit before your move or demand that you pay in cash. Be wary of high up-front payments.

How can I tell if a moving company is trustworthy?

You can tell if a moving company is trustworthy by verifying its compliance with state and local requirements. A trustworthy moving company will have a physical address, proper licensure, insurance, and a history of positive customer reviews. You can look up movers in the FMCSA database or check with your state movers association or consumer affairs agency.

How do I know if my movers are legit?

FMCSA registration and compliance information will help you know if your movers are legit. Transparent pricing, clear contract terms, and a professional approach are good signs. Watch out for red flags, such as providing an estimate without a detailed inventory or on-site inspection.

What is the best way to find a legitimate moving company?

The best way to find a legitimate moving company is through careful research and credible referrals. Read online reviews and ask friends and family for recommendations. Verify each company’s FMCSA or state registration, physical address, and insurance information. 

To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.