FBI Washington Field Office Warns of Moving Extortion Fraud

 

WASHINGTON—The FBI Washington Field Office is warning the public about increasingly prevalent moving fraud schemes and providing information about how to avoid being victimized by them. A typical moving fraud scheme begins when a customer is enticed into entering into a contract with a moving company to transport their household goods by offers of extremely low-cost estimates from a sales representative or broker. The customer then signs a contract and establishes a pick-up and delivery date with the company’s sales representative. After the customer’s household goods have been loaded onto moving trucks, the moving company begins to fraudulently inflate the cost of the move, sometimes more than once. The company will then withhold delivery of the goods until the customer has paid the inflated price.

“The FBI’s goal is to educate the public about the growing problem of moving frauds and how to avoid being victimized,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “The FBI and our partners will work to hold the fraudsters accountable who take advantage of unsuspecting customers by holding their personal belongings hostage for ransom.”

There are moving extortion fraud schemes across the country. Some companies continue to run the same scams over and over; they just change their name and relocate to another part of the country.

Protecting Yourself Before You Move:

Make sure everything is in writing – including whether the broker is only a broker or whether the broker is with the moving company.

Check with the Federal Motor Carrier Safety Association, U.S. Department of Transportation (USDOT) to ensure that the broker and the moving company are legitimate before signing contracts or paying money.

Check with the Better Business Bureau and check online reviews.

Red Flags:

If the initial inventory and estimate is conducted over the phone and if the estimate is based on cubic feet, not weight.

If the company requires a large down payment to book a move or lock in a price.

If the company requires you pay in cash and gives you a substantially low-cost estimate.

If the company uses high-pressure sales tactics to make you commit to an estimate or rushes you to sign anything.

If the company email headers do not match paperwork (name or address used is different than the company you thought you were dealing with).

If the USDOT numbers do not match the company name. Victims should be diligent in cross-checking inconsistencies in documents they receive from the company. DOT numbers can be searched through open sources to identify the company’s business name.

If the company address listed comes back to a residential building or virtual office.

If the company does not provide you a copy of Your Rights and Responsibilities When You Move.

Protecting Yourself at the Time of the Move:

Red Flags: 

The carrier arrives in a generic truck or rental vehicle.

The carrier begins loading before discussing any potential additional charges; you need to agree to new charges prior to work being done.

The carrier asks you to sign blank or incomplete documents.

The carrier demands payment in cash, money orders, or cash apps, and sometimes even more payment than originally agreed upon.

The carrier refuses to deliver household goods until an inflated price is paid.

There are threats or ultimatums being made by a representative from the company.

What To Do If You Are a Victim:

Contact the U.S. Department of Transportation’s Office of Inspector General Moving Fraud hotline at 1-800-424-9071, hotline@oig.dot.gov, or DOT Moving Fraud Page. You may also call 1-800-CALL-FBI, go to tips.fbi.gov or file a local police report.

La Oficina Regional de la Oficina Federal de Investigaciones (FBI) Advierte sobre Fraude de Extorsión por Mudanza

Source: Federal Bureau of Investigation