Protect yourself from falling victim to scams that could impact your bottom line.
Fraudulent loads are still one of the higher risks for companies in trucking this year. That's why it's crucial to stay vigilant against fraudulent schemes that can disrupt your business and livelihood. In this guide, we'll explore some of the usual fraud strategies you might encounter while working with brokers. By understanding these tactics and looking for red flags, you can avoid falling victim to these scams.
Let's dive into the world of trucking and arm you with the knowledge needed to navigate it safely.
Real broker impersonating
A fake agent impersonates a real broker, hacks the broker's load board, and posts a load from another broker. This way, they offer it in the name of a company with good credit. They assign you the load, you complete it, and once they get the POD from you, they collect the money from the other broker and stop answering you.
| 💡Tip: usually, these agents don't have an email with the broker's domain, and the rate confirmation looks edited or has a different format than the ones from that broker. |
New brokers with no intention to pay
A fake agent impersonates a real broker, hacks the broker's load board, and posts a load from another broker. This way, they offer it in the name of a company with good credit. They assign you the load, you complete it, and once they get the POD from you, they collect the money from the other broker and stop answering you.
| 💡Tip: There are new broker companies that offer loads, end up not paying, and close the company in less than a year. Rely on credit information and work with brokers in the market for over a year. |
Double Brokering
A fraudulent agent books a load with a good broker and then offers it on a load board again under a different broker's name, usually a new or a small company. They offer the load at a high price to make it attractive for carriers, and once it's delivered and they get PODs, the fake agent collects from the real broker, shuts down, and does not answer again.
| 💡Tip: if an agent is rushing you for documents, try checking with the original phone numbers for the company, call accounting or dispatching to validate the load is legitimate before sending paperwork to an agent directly. |
You might also be interested in: Preventing Fraud in Freight: The Credit Check Advantage
Rates suspiciously high
If a broker offers you a suspiciously high rate well over the average market price, this is a red flag; the broker might offer a high pay but may not intend to pay it. Investigate the broker's trustworthiness by checking with our credit team. You can also contact the broker's official number to ensure this is an actual load.
Agent's email is not from the broker's domain
Do not take the load if you notice the agent's email is Gmail, Outlook, Yahoo, or any domain different from the broker's. Some agents create email domains with a misspelling to make it harder to detect, i.e., agent@ladstar.com is missing the "n." it is difficult to see, but it's a typical red flag.
Different broker or carrier names on BOL
If there's already another broker or carrier name on the BOL that you were given, it may be a double-brokered load. It would be best if you took the time to confirm that you are assigned to the load by calling the AP or dispatch main line with the broker on your rate confirmation to avoid getting caught in a double brokering situation. You can get a broker's phone number by accessing their website directly or by checking on SAFER here.
The broker is rushing you to accept the load
Always do your due diligence, check the credit for the broker, and confirm that the agent's phone number and email match the company's info.
Knowledge is your greatest ally. By familiarizing yourself with the common fraud strategies outlined in this guide and staying alert to the red flags, you can safeguard your business and financial well-being. Not all brokers are equal, so verifying their legitimacy before accepting loads is best. Also, remember always to trust your instincts, keep these tips in mind, and consult official sources to ensure a smooth and secure journey.
Keep the guide at hand and download it here. 👇
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By partnering with Summar Financial, you can focus on the road ahead, leaving financial complexities in capable hands and confidently driving your business forward. Contact us now to learn more about Factoring and what it can do for you.