New Scams in the Auto Transport Industry: Auto Transport Companies to Avoid
Please note this article isn’t meant to scare anyone from transporting a vehicle but to inform them of the potential dangers in this industry today. In recent years, the auto transport industry in the USA has witnessed an unfortunate surge in fraudulent activities, leaving both consumers and legitimate businesses vulnerable to scams.
As technology evolves and the demand for vehicle transportation services grows, so do the cunning methods employed by scammers. These fraudulent operators prey on unsuspecting customers who may be shipping a car for the first time, trusting what appears to be a reputable service.
Here, we shed light on some of the new scams emerging in the auto shipping space and provide practical guidance on how to identify auto transport companies to avoid.
The New Scam
Recently, there have been cases where drivers or carriers reach out to brokers, claiming they can pick up the vehicle posted. These carriers or drivers appear legitimate enough for the broker to choose them without proper vetting.
In reality, this company rebrokers the job without authorization, passing the shipment off to another driver. When the vehicle arrives, the customer attempts to pay the driver, who then says, “Don’t worry about it, the broker is paying me.” But the broker either doesn’t exist or has vanished after collecting the customer’s payment.
In these instances, the scammer pockets the payment, leaving the actual driver unpaid and the customer confused. This causes chaos for everyone involved: the customer, the broker, and the driver. Often, the driver also expects a different payment amount than what the customer agreed to, due to false promises made by the fraudulent broker.
To avoid this nightmare scenario, it is critical to choose a legitimate auto transport brokerage company that understands the industry and follows proper carrier verification processes. A reliable broker will vet every carrier, verify FMCSA registration, and maintain transparency from start to finish.
Phantom Auto Transport Companies
One of the most dangerous trends today involves phantom companies – fraudulent businesses that create fake identities complete with professional-looking websites, fake reviews, and phony customer support lines.
These scammers typically lure customers with unrealistically low car shipping quotes and high-pressure tactics to secure deposits quickly. Once the payment is made, communication ends. The transport never happens, and the customer is left scrambling to recover their funds.
Signs of a fake auto transport company include:
- Lack of physical address or business registration details
- Poor-quality websites with generic or plagiarized content
- Only accepting non-traceable payments like gift cards or wire transfers
Avoiding these scams requires careful research and skepticism of deals that seem too good to be true.
Bait-and-Switch Pricing
Another common tactic used by dishonest car shipping companies is the bait-and-switch pricing scheme. These companies initially offer a low quote to lock in a customer, but later come back with additional charges or excuses for price increases.
They may blame fuel prices, routing changes, or driver shortages, but often, it’s simply a dishonest sales tactic. By the time the price is raised, the vehicle is already scheduled, and the customer feels pressured to accept the inflated cost.
Protect yourself by demanding a written contract that includes all applicable fees and cancellation terms. Be especially wary of vague pricing structures and verbal-only quotes.
Nonexistent Insurance Coverage
Legitimate auto transport companies must carry liability and cargo insurance, but scammers may falsely claim coverage to appear professional. In reality, these fraudulent transporters may not carry any valid insurance, putting your vehicle at risk in the event of damage or theft.
Always request a copy of the insurance certificate and verify it with the carrier’s insurer. Ask detailed questions about coverage limits, deductibles, and the claims process.
Identity Theft through Fake Brokers
Some of the most alarming scams involve fraudulent brokers collecting personal information (names, addresses, banking details, and even Social Security numbers) under the guise of booking a shipment.
Once they have this data, they vanish or sell it to other criminal networks. To avoid identity theft, only provide sensitive information to licensed, bonded, and insured transport providers. Use platforms like the FMCSA’s SAFER system to verify broker legitimacy.
Stolen Vehicle Scams
While rare, there have been incidents where fake auto transporters steal vehicles outright, posing as legitimate carriers and never delivering the vehicle to its destination.
To avoid such devastating outcomes:
- Verify the DOT number and MC number of the carrier
- Ask for a copy of the carrier’s bill of lading and insurance
- Do not release your vehicle to a driver without matching credentials and paperwork
Deceptive Payment Practices
Scammers may insist on untraceable payment methods like cryptocurrency, prepaid debit cards, or wire transfers to eliminate any chance of chargebacks. They may also add urgency with “limited time offers” to pressure customers into making hasty decisions.
Legitimate vehicle transport companies will accept secure payment methods such as credit cards or escrow payments that offer protection against fraud. Avoid any company that refuses to work with traceable or protected payment platforms.
False Reviews and Testimonials
A polished website and dozens of glowing reviews don’t guarantee authenticity. Many scam companies flood review platforms with fake testimonials, often purchased or generated using bots.
Instead of relying on a single platform, check Google Reviews, Better Business Bureau (BBB) ratings, TransportReviews.com, and even Reddit threads for a more comprehensive view. Real customers often provide detailed, nuanced feedback that’s harder to fake.
Steps to Avoid Scams in Auto Transport
Verify Credentials
Always check the company’s USDOT number, Motor Carrier (MC) number, and insurance documents. Use FMCSA’s official tools to validate the business’s legitimacy.
Research the Company
Look for consistent reviews across multiple platforms, read customer complaints, and check for unresolved BBB issues. Don’t be afraid to ask the company for recent references.
Get Everything in Writing
Insist on written contracts that outline total cost, estimated delivery time, insurance coverage, cancellation policies, and payment terms.
Use Secure Payment Methods
Avoid companies that request payment upfront via wire or cryptocurrency. Use credit cards or escrow services that offer fraud protection.
Why You Should Choose Dynamic Auto Movers
With so many auto transport companies to avoid, it’s more important than ever to partner with a provider you can trust. At Dynamic Auto Movers (DAM), we’ve built our reputation on integrity, transparency, and customer-first service, helping thousands of customers safely ship their vehicles across the country.
Here’s what sets DAM apart from other auto transport companies:
Licensed, Bonded, and Insured
We are fully registered with the Federal Motor Carrier Safety Administration (FMCSA) and work only with licensed and insured carriers. This means you can rest easy knowing your vehicle is protected every step of the way.
Transparent Pricing – No Hidden Fees
Scam companies often use bait-and-switch pricing to lure customers. At DAM, our quotes are straightforward and transparent, with no last-minute surprises. You’ll receive a written contract that outlines all costs upfront.
Rigorous Carrier Screening
Unlike brokers who pass off shipments to the lowest bidder, we vet every carrier thoroughly, checking their safety records, insurance coverage, and customer feedback. We only work with
Conclusion
Staying vigilant and informed is key to safeguarding yourself from the evolving landscape of car shipping scams. With a rise in fraudulent actors posing as legitimate providers, it’s more important than ever to identify auto transport companies to avoid and do your homework before committing.
By verifying credentials, asking the right questions, and working with trusted providers, you can enjoy a smooth, secure, and stress-free vehicle transport experience. When in doubt, consult with reputable experts like Dynamic Auto Movers, who are committed to transparency and customer safety.
Have questions or need guidance on your next auto transport? Contact Dynamic Auto Movers for trusted, insured, and professional vehicle shipping solutions.
