Avoiding Moving Scams: How to Rip-Off Moving Companies

Doing your due diligence as a consumer is crucial in avoiding falling victim to a moving company scam. Moving can be a stressful time, but dealing with a dishonest moving company can turn your relocation into a nightmare.

Not only do you have to deal with the physical weight of your belongings during a move, but also the heavy burden of dealing with a scam that can leave you feeling cheated and drained. Moving can be an exciting yet stressful experience, and unfortunately,  many unsuspecting individuals are taken advantage of by those perpetrating fraudulent moving scams (especially through hidden fees and overcharges).

To protect yourself and your belongings, it's essential to know how to spot deceptive practices, and understand the ways they trick and exploit consumers.

A crucial step in safeguarding yourself against a moving scam is conducting thorough research and background checks on potential movers to verify their legitimacy and track record of reliable service. Here are some tips and warning signs to watch out for:

1. Poor Rating on BBB

The Better Business Bureau, or BBB is a company that aims to provide consumers with an insight into the business they've had experiences with, or are looking to hire. A reputable moving company should have a good rating with the Better Business Bureau (BBB). Anything below a B rating should raise a red flag. Check the BBB website for complaints and reviews before hiring a moving company. While information from the BBB can be somewhat biased in terms of its reliability, we believe that it still is a good hallmark to try and gauge a company's reputation.

Customers tend to log onto the BBB website to vent out their frustrations with companies they've dealt with. Generally, their frustrations involve a company's contract (or lack thereof), companies not honouring their estimates or price (especially through hidden fees), the way their moving services were carried out/how their personal articles were handled. The BBB also acts as an archive for a business's complaint history, ultimately providing valuable insights and details into their previous clients' experiences and potential red flags to look out for.

2. Subcontracting Your Move 

Some moving companies subcontract your move to a different company without your knowledge. This can lead to a lack of accountability and potentially a higher risk of damage or loss of your belongings. Always ask the moving company if they will be handling your move themselves or if they plan to subcontract it. As a customer, you ought to understand where your money is actually spent. Don't be afraid to ask questions about who exactly will be carrying out your move. Do thorough research to avoid falling victim to moving company scams. Will the move be carried out by an actual employee? Or perhaps one of their friends, or freelancers they've hired through a questionable job listing?

3. Lack of Insurance 

Legitimate moving companies will have insurance to protect your belongings in case of damages or loss during the move. If a moving company does not have insurance, consider it a major warning sign and look elsewhere for your moving needs. A lack of insurance might simply mean that a company is no other than someone hiring a few freelancers to move your household goods, precious valuables, and possessions to haphazardly load them into a moving truck without due care or training. Scammers posing as professional movers often do not have insurance, or are insured for something completely unrelated to moving. Hiring the right people have adequate insurance documents and credentials is one of several factors to note when you're on the lookout for a mover.

4. No WCB Number 

A Workers' Compensation Board (WCB) number is required for companies that have employees. If a moving company does not have a WCB number, it may indicate that they are not operating legally or may not have proper insurance coverage for their workers. Furthermore, the lack of proper insurance coverage and legality in their operations suggests a disregard for industry regulations, which raises concerns about the safety and security of the customers' belongings during the moving process.

A legitimate moving company will adhere to the licensing requirements set out by law. This is especially important given the physical demand of being a mover: if an employee of an illegal moving company gets injured on your property, there is a chance you could run into some serious legal issues. Complex legal situations can be avoided if the company you hire is adequately insured and operates within the confines of the law.

5. No contact methods other than e-mail 

Legitimate moving companies should have a physical address and a phone number that you can contact. Companies that only provide an email address for communication may be trying to avoid direct contact and could be difficult to reach if issues arise during your move. Anybody can have an email address, but a legitimate, licensed moving company needs to have a physical address where they operate out of.

Lack of contact methods other than email is an indicator that you are likely not dealing with an illegitimate company. Paying attention to the names that a company uses can provide vital clues about their legitimacy. If the moving company isn't searchable on Google, there is a chance that they're freelancers carrying out a fraudulent "movers-for-hire" scheme.

6. Low Ratings and Lack of Response on Google 

Check the company's Google reviews and ratings. Companies with less than 3 stars, especially those that don't reply to complaint reviews, may not prioritize customer satisfaction. Be wary of companies that have a pattern of negative feedback and lack of responsiveness.

Additionally, it is important to watch out for moving companies that engage in fraudulent practices, such as operating without proper licenses or insurance, as these companies are more likely to scam unsuspecting customers out of their hard-earned money. Customer reviews are a valuable way to gauge a company's reputation, and often Google reviews can be a good source to determine whether a company is a fraud. Yelp is an alternative platform to review people's past experiences with companies. One way to understand a business's social proof and protect yourself from falling victim to a moving scam is by doing your due diligence by checking their feedback on BBB as well as their reviews on Google.

7. Limited Payment Options

A common trap to watch out for is when the moving company requests a large upfront deposit or demands cash-only payments, as this could be a clear indication of a potential moving scam.

Reputable moving companies will accept a variety of payment methods, including debit and credit cards. If a moving company insists on cash-only payments or has limited payment options, it could be a sign of a scam. A  low moving cost will seem enticing at first glance, beware of moving companies that offer significantly lower prices than their competitors, as these could be signs of a potential moving scam.

Before hiring a moving company, it is crucial to thoroughly research and verify their credentials, as well as to be cautious of any requests for large upfront deposits, as this could be an indication of an untrustworthy moving scam.

The old adage of "getting it in writing" applies to this. Be sure to read all the contracts that are provided and ensure that you actually understand the terms and conditions listed in the contract before you sign it. It is your responsibility to ensure that you do your due diligence and exercise caution to be protected from deceptive business practices. A scammer will do their utmost to not have a paper trail for their deceptive business practices. In Canada, it is advised to be wary of businesses that only accept cash or e-transfers.

One of the key factors to be aware of when avoiding a moving scam is to carefully review and understand all charges associated with the moving services being offered. In addition to avoiding businesses that only accept cash or e-transfers, it is crucial for individuals to remain vigilant and knowledgeable about various manipulation tactics used by scammers in the moving industry, such as offering unusually low estimates, holding belongings hostage, or demanding exorbitant fees for unforeseen "additional services".

8. Lack of a Website 

Today, most legitimate businesses have websites. A moving company that does not have a website or an online presence may be operating under the radar and could be less reliable. A legitimate moving company should be able to provide you with quotes/an estimate, demonstrate how they will handle your furniture and other items with due care, display their logo on their vehicles, and showcase past moves. Be cautious, however, as some moving companies use misleading tactics such as displaying photos of pristine trucks on their website, but arrive on moving day with outdated, worn-out rental vehicles.

When hiring a moving company, it's crucial to do your due diligence and research the company thoroughly. It is both the responsibility of the customer and the company to ensure that the services that are contracted are carried out without any undue exploitation.

Look for warning signs such as poor ratings, subcontracting, lack of insurance, no WCB number, limited contact options, low ratings on Google, limited payment options, and the absence of a website. These indicators raise red flags and suggest that a moving company may potentially be involved in a moving scam.

Through understanding these warning signs, and doing a bit of investigative homework, you can protect yourself from falling victim to a moving scam or (other similar situations) and ensure a smooth and stress-free relocation experience, devoid of any trickery or deceit.