A colleague recently introduced me to a gentleman working for the Better Business Bureau (BBB) on the national level. He is conducting studies on common frauds that people see every day in both the United States and Canada. Of course, one area of interest for him is internet-based moving scams. In preparation for a call, I sent him some of my initial thoughts, from the 10,000 ft. level, on the issue. I shared:

• The online purchase of products has given the consumer a false sense of security in the purchase of services.
• The fact that you can conveniently purchase your favorite dog food online has no connection to a complicated and personal service like a cross country move. Is it really prudent to hand over all your worldly possessions to someone who you have only met on the internet? They load up all your goods then close the truck doors and drive away and frequently the only point of contact the consumer has received consists of a website and a cell phone.
• The consumer’s desire for instantaneous online purchases has played right into the hand of the scam operator. Last-minute demands for service are frequently challenging for legitimate movers who have the goal of providing the services and pricing that they promise the consumer. A scam operator has no compunction about making unrealistic promises of service and price since they have no intention of honoring either.
• Consumers have an inaccurate perception of consumer protections.
• Bad actors are attracted to this industry because of the opportunity for cash transactions and historic lack of effective federal enforcement.
• What little federal enforcement that exists is far more interested in Truck Safety (very important) than Consumer Protection (also important, but more difficult to assess).
• Even federal licensing is confusing to consumers. Not simple enough to validate a legal interstate mover or even understand what that means.
• Lack of regulatory accountability, particularly evident in the broker model.
• Models used by scam operators.
• Business identity theft, actually stealing the name and sometimes the web presence of a legitimate mover.
• Identity confusion, using a name similar to a known name or very generic name.
• Presenting themselves as an Association or group of concerned movers. These are frequently syndicates or single operators representing themselves as multiple and unique companies with the goal of creating a false impression to the consumer that they are doing their homework and establishing market rates and business standards.
• Extremely personable in the move set-up, no request is too difficult, and pricing is far better than expected. Once you book and start to see service failures and dramatic price changes you will never be able to speak with that person again.

Grateful for the insight, the investigator had several follow-up questions, one of which allowed me to share a shining light at the end of the tunnel, and no it wasn’t an oncoming train! He asked what about moves in California? What is the state doing to protect consumers? I was very pleased that I had positive news to share. Does this problem exist in California for intrastate moves? Of course it does! However, the California regulators, the Bureau of Household Goods and Services (BHGS) has answered the call. Even on the interstate side, BHGS has been able to reconnect over 30 families with their belongings being held hostage as part of internet-based bait and switch scams! In the last 30 days, the Bureau has conducted two field actions to stop unlicensed activities in Southern California resulting in several fines and investigations, with more to follow. We congratulate BHGS on their successful efforts to address unlicensed operators.

February 2020 - CMSA Communicator