Cargo theft and freight fraud have wreaked havoc on the trucking industry and economy for years — and the threat continues to rise. The American Trucking Associations claims that freight shipment crimes cost the American economy up to $35 billion per year, with strategic theft rising 1,500% over the past five years.

The first step in preventing these scams is awareness. Learn the most common types of freight fraud and the measures you can take to prevent it from damaging your business.

Top 5 Trucking Scams & How to Avoid Them

Scams directed at trucking companies can take several forms. Here, we’ll outline some of the most common freight fraud schemes to look out for: 

1. The “too good to be true” offer.
   • Scam: If you’re approached with an offer that’s significantly above market prices, you may be looking at a freight scam or broker impersonation. Fraudulent brokers will often promise an amazing payout or forge credentials, logos or email addresses. They'll also often create a sense of urgency to pay an upfront escrow payment to cover costs.
   • Prevention: Investigate load details and any broker that submits an abnormally high offer before moving forward, and don’t assume they’re legitimate just because their communication appears as such. Run their MC or USDOT number through a regulatory database, like the Federal Motor Carrier Safety Administration’s (FMCSA) Safety and Fitness Electronic Records (SAFER) system.
2. Identify theft.
   • Scam: Fraudsters are becoming increasingly sophisticated in their methods, to the point of even stealing legitimate carriers’ MC numbers to get loads booked. This is sometimes referred to as “MC number hijacking." Scammers will use the MC numbers to pose as a carrier, book a load and then disappear with the cargo.
   • Prevention: Similar to approaching a potential broker impersonator, you'll want to vet carriers thoroughly. Be sure to run carriers' MC numbers through the SAFER system to check their carrier authority, safety ratings and insurance status. You can also perform background checks and analyze communications in detail to ensure legitimacy.
3. Fuel advance scams.
   • Scam: This type of freight fraud involves a form of identity theft, where a scammer poses as a carrier and offers to transport a load for your trucking company. They then request a fuel advance to cover the cost of fuel. Once the payment is made, the scammer takes off with the cash but never follows through with transporting the load.
   • Prevention: When it comes to fuel advances, you'll want to wait to receive authentic load documentation before you pay and watch for red flags, like carriers asking to use online payment apps. You'll also want to follow the same preventative measures as identity theft, where you run the carrier's information through the SAFER system to ensure legitimacy.
4. Double brokering.
   • Scam: This scheme can get a little complex, which is one reason trucking companies often fall victim to it. Essentially, double brokering occurs when a freight broker passes off a load to a fraudster posing as a legitimate carrier. The fraudster, however, is simply another broker who passes off the load to an actual carrier. The fraudulent broker then pockets the payment from the original broker and never pays the carrier for their services.
   • Prevention: One of the best ways to avoid double brokering is by working with verified carriers and brokers or using load boards that support a broad, vetted carrier network. You can also verify the identity of the carrier through the SAFER system.
5. Fuel card fraud.
   • Scam: Fuel card fraud involves stealing or misusing fuel cards for unauthorized purchases. Scammers will skim cards at fuel pumps, clone cards or perform "phantom" transactions that don't actually exist. This scam can cost fleets significant money, especially if the scam takes place over a long period of time.
   • Prevention: You can prevent fuel card fraud by selecting a fuel card with added security features, such as Card Lock, which only allows the card to be used when unlocked in an app. You can also require secure PINs, set transaction limits and frequently audit fuel purchases to find excessive fuel consumption or out-of-the-ordinary transactions.

More Ways to Prevent Freight Fraud

By taking these preventative measures and adhering to best practices, you can effectively protect your company’s assets and reputation from freight fraud and theft.

• Review Load Details: One major red flag to watch for is inaccurate information. Watch for vague or incomplete details, missing contact information, inconsistent load descriptions and other discrepancies.
• Examine Rate Sheets: Just like inaccurate load information can be a sign of a scammer, you may see similar inconsistencies in rate sheets. Missing information, suspicious formatting or vague verbiage are all indicators of potential fraud.
• Avoid Feeling Pressured: Often, fraudsters try to pressure you to accept loads immediately, creating a sense of urgency so you continue without vetting information. If a broker ever asks you to work on a tight timeline that prevents you from performing your due diligence, be on your guard.
• Rely on Written Documents: Written confirmations and agreements are critical for protecting your company against fraud. They provide a clear record of terms and expectations, while also giving you some legal recourse if you are the victim of a freight scam.

With these precautionary measures, you can minimize the likelihood of falling prey to freight fraud scams. Taking extra steps to research and verify information can save you from huge financial and time losses, while ensuring your business keeps a clean reputation.

RTS: A Partner You Can Trust

We have decades of experience helping trucking companies protect their drivers, cargo and bottom line. Connect with one of our friendly representatives to learn more about our secure fuel card options, reliable financing solutions and other industry-leading services to help your company grow and prevent freight fraud.