If you are part of the freight industry, you are likely well aware that there has been a significant rise in fraudulent activities. Fraud not only disrupts operations and costs companies millions of dollars annually, but it also erodes trust within our industry. It’s important that we all stay informed on trends and how we can protect ourselves, one another and our broader ecosystem. 

The Increasing Threat of Freight Fraud

The freight industry has become a prime target for fraudsters. Given the complexity of our industry and the many players involved, bad actors are able to find vulnerabilities. Sometimes they are even able to get away with freight in addition to stolen money. 

We’ve had our eye on a few scams, and we’ve also recently read about a few in outlets like FreightCaviar and Truckstop as well. Let’s dive into a few:

Fake Shipper, Fake Carrier, Real Broker

In this sophisticated scheme, a scammer poses as a customer, contacts a broker to pick up freight, and deceitfully accepts the load as a carrier. The scam involves multiple steps, including impersonating brokers and shippers, using fake Motor Carrier (MC) numbers, and ultimately collecting payment for loads without paying the broker.

Double-Brokering

Fraudsters sign contracts with brokers or third-party logistics providers, then re-broker the load to legitimate carriers at high rates. They request payment before the load is delivered, leaving the carrier who completed the work unpaid.

Driver-in-Need

Scammers collect load information from drivers and use it to request cash advances by posing as drivers in need of assistance.

Fake Repair Shops and Towing Businesses

Scammers pose as repair shops, requesting payment for services rendered using gathered vehicle and driver information to make the request appear legitimate.

These are just a few examples of the scams being perpetrated in our industry. There are many, but one theme is clear across all scams – they are becoming increasingly sophisticated. We have to be extremely proactive to minimize risk. 

How to avoid freight scams and protect your business

Stay Informed and Vigilant

• Identify Phishing Attempts: Be cautious of unsolicited emails, phone calls, or messages that ask for personal information or payments. Even if you’re familiar with the name or entity reaching out to you, always verify the identity of the sender (checking email addresses, checking email authenticity, etc.) before responding.
• Train Employees: Educate your staff on common phishing tactics and how to recognize suspicious communications.
• Industry Awareness: Stay updated on the latest fraud trends and scams in the industry by tracking social and traditional media conversations or attending conferences, for example.

Adopt Technology to Prevent Fraud

• Tracking Technology: Implement robust security measures to protect sensitive information. Use GPS tracking and other technologies to monitor your cargo in real-time.
• Freight Matching Technology: Use reputable digital platforms for freight matching to ensure you're working with verified and trustworthy partners.
• Identity Verification Technology: Verify the identity of carriers using technology that checks MC numbers, insurance details, and other credentials. Conduct thorough background checks on new business partners and use databases or industry networks to verify their legitimacy.

Increase Security Measures

• Secure Data and Personal Information: Protect sensitive information by using secure systems and limiting access to authorized personnel only.
• Enhance Physical Security: Use high-security locks, park in well-lit areas, and employ security measures at intermodal hubs to prevent cargo and fuel theft.
• Confirm Payment Requests: Before making any payments, verify the legitimacy of the request through direct communication with the supposed requester.

By understanding these scams and implementing preventative measures, industry players can protect themselves and contribute to a safer, more secure freight industry. Stay vigilant, adopt the right technologies, and foster a culture of security awareness within your organization, your work network and the industry at large.

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