More and more, the trucking industry relies on digital systems and communications. Those innovations certainly streamline the day-to-day activities of running a business. It has also brought a significant rise in trucking scams and freight fraud in recent years. Last year, stolen cargo costs hit nearly $455 billion, with the estimated average value of cargo theft rising to $202,364.
For trucking businesses, even one fraudulent load can have a big impact on your profit margins. Trucking scams and freight fraud can negatively impact your ability to meet operating costs and pay your drivers. Trucking scams may also hurt broker and shipper relationships you’ve worked hard to build.
For all these reasons, trucking scam awareness and prevention are more important than ever. In this blog, we outline the eight most common types of freight fraud and trucking scams that may impact you. Recognizing these scams can protect you, your drivers and your business.
1. Double Brokering
Double brokering is one of the most common ways that cargo thieves and bad actors can trick carriers. Double brokering occurs when a load is re-brokered without proper authority. For example, a carrier or broker agrees to transport a load but brokers the load to another carrier (you), often involving a fake or fraudulent broker authority or without telling the broker they got the load from.
The result of double brokering is that you transport a load but never actually get paid for doing so. Instead, thieves take the payment for the load, and you’re left trying to collect the money from a broker or shipper who has no idea what happened. In this case, both the carrier and broker/shipper or victims of this scheme.
How To Recognize Double Brokering
Luckily, there are clues that can help you recognize double-brokered loads. If you’re dealing with an unknown freight broker or a broker whose credentials can’t be verified, that may indicate fraud. Unusually high rates on high-value loads can be a sign of double brokering. Other signs include the broker or carrier providing limited or vague details on the freight they’re asking you to run, and then pressuring you to immediately accept the load.
How to Prevent Double Brokering
There are steps you can take as a trucking company to actively prevent double brokering. Before accepting a load, you should verify if it a legitimate broker. This can include cross-checking MC numbers and operating authorities through the FMCSA or a factoring company that offers broker credit checks. Some factoring companies can verify a broker’s payment history and reputation. A few minutes of work can save you thousands. “Know before you load” is a good way to remember to check before booking the load.
2. Identity Theft and Load Fraud
Another frequent type of trucking scam you may encounter is identity theft, also known as load fraud. This theft happens when criminals impersonate legitimate freight brokers or carriers. Criminals use stolen MC numbers and the information of legitimate brokers and carriers to appear trustworthy. They may even set up fake websites and email addresses as part of the scheme. Load thieves post or accept loads with no intentions of fulfilling contracts or paying carriers like you.
How to Recognize Identity Theft, Load Fraud
Last-minutes changes to pickup locations and inconsistencies in documentation may indicate that you’re dealing with load fraud. Strange or unusual communication patterns also are common. Other signs of identity theft include doing business with a company with a very new operating authority or email addresses that don’t match the company’s website domain.
How To Prevent Load Fraud/Identify Theft
Consider using a secure software and requiring multi-factor authentication for all log-ins. Other prevention strategies include verifying company information through FMCSA’s SAFER website and using phone numbers listed on the company’s website. Again, many factoring companies and financial institutions can help research the company and determine if they are legit.
3. Factoring Scams and Payment Fraud
Factoring scams and payment fraud are also common in the trucking industry. This type of fraud involves redirecting payments to criminals using fraudulent payment instructions. In this scheme, scammers impersonate factoring companies and/or manipulate invoice details. The fake factoring company sends fake factoring notices or steals legit factoring payments.
Tips for Identifying Factoring Scams and Payment Fraud
Thankfully, there are signs that you may be dealing with a factoring scam or payment fraud. If you see unexpected changes to payment instructions or unusual email domains for payment communications, that may be a sign of fraud. Urgent requests demanding immediate action and sudden changes in factoring relationships may signal that you’re dealing with scammers as well.
Factoring/Payment Fraud Prevention Strategies
To avoid becoming a victim of this type of fraud, use verification procedures for new factoring relationships and be sure to verify payment instruction changes by phone. Trustworthy factoring companies require you to verify some information before changing your information.
Be sure to monitor your payment accounts regularly and only use secure communication channels with factoring partners.
4. Advance Fee Scams
With advanced fee scams, fraudsters offer access to "premium" or "guaranteed" loads. To get these supposed premium loads, you’ll have to pay advance fees, subscriptions or deposits. With this type of fraud, criminals promise carriers unusually high-payment loads that disappear after they collect their fees. Advance fee scams are another instance of if-it-sounds-too-good-to-be-true-it-probably-is.
How To Spot Advance Fee Scams
If you receive requests for upfront payments or promises of exclusive, high-paying loads, you may be dealing with an advance fee scam! Other clues include unrealistic rate-per-mile offers and limited company information available. Some scammers also use pressure tactics and try to convince you to accept “limited time” offers.
How To Avoid Advance Fee Scams
One of the best ways to avoid advance fee scams is to never pay for access to loads — unless it’s through a known load board or trusted, verified broker. Instead, focus on establishing payment terms with legitimate brokers and developing a solid understanding of industry best practices.
Also, consider conducting background checks on new business partners to stay clear of advance fee scams. This is where working with a trusted factoring partner can help. In many companies, they have teams that can look into this.
5. Cargo Theft Schemes
Cargo theft, also known as freight fraud or theft, is the strategic theft of cargo using deceptive pickup arrangements. These types of trucking scams increased by nearly 30 percent in 2024 alone. Cargo thieves often create fake pickup documentation or driver credentials in order to target high-value loads with timed theft strategies. It’s worth noting that cargo theft often involves inside information about shipping schedules.
Cargo Theft Recognition Signs
Are you seeing last-minute driver substitutions or frequent requests to change pickup procedures? If so, these may be signs that you’re working with cargo thieves. Other signs of cargo theft include drivers without proper identification, unusual pickup timing or locations changes, and limited or suspicious contact information.
How To Prevent Cargo Theft
Consider creating pre-established pickup procedures with your customers that include verification calls for releasing freight. It’s also a good idea to use GPS tracking technology on your high-value shipments so that you can track the locations of trucks and freight in real time.
6. Phony Repair Shop Scams
The phony repair shop scam is just what it sounds like: fraudulent repair shops overcharge or perform unnecessary repairs on your equipment. The shop may claim to find urgent mechanical issues that require immediate attention or expensive repairs. Phony repair shops work in areas where a lot of trucking businesses drive through, and they may target out-of-town drivers who aren’t familiar with the area.
Other phony repair scams involve fraudsters calling carriers like you with truck numbers and your drivers’ names. In this scenario, the scammers claim they are towing the truck or doing maintenance on it and demand immediate payment. In reality, the truck isn’t being repaired or towed. A quick call to your drivers can verify this.
How To Spot a Phony Repair Shop
If you’re getting offers of unsolicited roadside "help" or pressure tactics talking about safety concerns, you may be dealing with a phony repair shop. Other signs might be that they do not provide you specific estimates on the repairs, higher final prices than quoted, and poor/no online reviews or no company website.
Avoiding Phony Repair Shop Scams
To avoid phony repair shop scams, build relationships with repair shops that have a nationwide or regional presence. Also, consider getting second opinions/quotes for major repairs and request detailed, written estimates in advance. It’s also a good idea to research repair shops online and conduct regular preventative maintenance on your commercial vehicles to reduce the risk of emergency repairs.
7. DOT Compliance Scams
Other types of trucking scams include DOT compliance scams, which happen when criminals contact you claiming to represent the DOT or FMCSA. These scammers may demand immediate payment for violations or supposed compliance issues. These impersonators often offer fast resolution of regulatory problems and may threaten you with fines or closure for alleged non-compliance.
Identifying DOT Compliance Scams
DOT compliance scams usually involve urgent calls about immediate compliance issues. The scammers may request payment via unusual methods or make threats of severe consequences for non-payment. DOT compliance scammers lack official, written documentation and the phone number they call you from may spoof official government phone numbers.
How To Prevent Becoming a Victim of DOT Compliance Scams
First, never provide payment to a government agency or regulatory body by phone. If you’re contacted about a compliance issue, verify that the person calling you actually works for the agency through official channels. Be sure to request official documentation of any compliance issues and verify them independently. It helps to have a good understanding of genuine compliance and regulatory requirements and to train your staff to recognize legitimate government communications.
8. False Freight Claims
False freight claims involve fraudulent claims of damaged or missing cargo. These claims are exaggerated or fabricated to extract insurance payments from insurance companies. False freight claims may involve staged or fabricated “evidence” of damage. They also may include the manipulation of documentation to support false insurance claims.
Recognizing False Freight Claims
If you find an insurance claim that is inconsistent with the condition of a load at delivery or see missing or altered BOL documentation, you may be dealing with a false freight claim. Other signs of false freight claims include lack of evidence showing damage, unusual patterns of claims from specific customers and claims filed after delivery without prior notification.
How To Prevent False Freight Claims Prevention
To prevent false freight claims, you’ll want drivers to document the load condition and details at all pickup and delivery points. This may include photos or videos of freight before and after transport. Thorough inspections at all transfer points, transparent claims procedures for customers and driver training on the importance of documentation also can reduce the risk of this type of fraud.
Best Practices for Building a Comprehensive Protection System
If you want to proactively protect your trucking business from trucking scams, freight fraud, and other types of criminal activity, think about the small and big changes and updates you can make to your business and practices.
Situational awareness is critical. Questioning when something feels off is important. “Know before you load” is the key to making sure you don’t get burned by one these bad actors.
There are several fraud resources and reporting tools to use to better inform and protect your business. Use technology where you can, but be sure to use all the identity protection features like multi-factor authentication.
Protecting Your Fleet from Fraud: The Long Game
Vigilance is the most effective weapon you can wield against freight fraud, trucking scams and theft and the criminals behind these illegal activities. If you do encounter fraud or trucking scams, be sure to report the suspected fraud to the appropriate authorities and regulatory bodies. It’s also crucial to stay updated and informed on emerging freight scams and fraud by attending industry events, reading trucking publications and talking to other trucking businesses.
Of course, the best defense against trucking scams is to build a culture of safety and security within your fleet. This starts with educating your staff members on the value of fraud prevention and how following internal procedures can keep your business running smoothly.