Freight Scam Alert: Fake Shipper, Fake Carrier, Real Broker

In recent months, a new breed of the double brokering scam has emerged, targeting unsuspecting freight brokers and leaving them unpaid. This intricate scam involves a labyrinth of fake shippers, carriers, and a series of deceptions that exploit the broker's trust and systems.

The scheme starts with a scam artist posing as a customer, contacting a broker to pick up freight. The broker, in turn, posts the load, which is then deceitfully accepted by the scammer acting as a carrier. This tactic is part of a more detailed strategy that involves multiple steps:

• First Step: The scammer poses as a broker to a shipper, acquiring their credit information.
• Second Step: They then impersonate a shipper to a different broker, using the previously acquired information.
• Third Step: With a fake Motor Carrier (MC) number, they book loads from a legitimate broker.
• Final Outcome: Acting as a shipper, they award the load to a broker, collect payment as the carrier, and never pay the broker. This can happen for multiple shipments before the broker becomes aware of the problem 30-60 days later.

The National Owner Operator Association (NOOA) warns that these scams are not the work of opportunistic individuals but rather of professional international con artists, causing significant financial losses to the industry. The NOOA's Director of Fraud Prevention emphasizes the importance of brokers vetting their shippers carefully and verifying identities.

Key Recommendations for Prevention:

Experts like Cassandra Gaines, CEO of Carrier Assure, stress the importance of staying vigilant and informed. She advises running credit checks and being selective in extending credit to shippers.

• Vet the Shipper:
  • Google and LinkedIn Searches: Start with a basic search on Google and LinkedIn. This can reveal valuable information about the company's history, reputation, and legitimacy.
  • Email Domains and Phone Numbers: Scrutinize the shipper's email domains and phone numbers. They should align with the company's official contact information. Be wary of generic email domains and mismatched or obscure contact numbers.
  • Credit Checks: Utilize services like DNB (Dun & Bradstreet) or Experian for comprehensive credit checks. These reports not only verify creditworthiness but also provide authentic contact information.
  • Limit Extended Credit: Exercise caution in how much credit you extend to shippers, especially new or less-known entities. Limiting credit can reduce your risk exposure.
• Check the Carrier:
  • SAFER or Carrier Assure Verification: Use the FMCSA's SAFER (Safety and Fitness Electronic Records) system or Carrier Assure to validate the carrier's identity. This step is crucial in ensuring that the carrier is not only legitimate but also compliant with safety and regulatory standards.

Sources: Carrier Assure | Reddit: Freight Scam Discussion | VigilantTransSvcs/Reddit: New Evolution in Double Brokering Scams