1. Double Brokerage Fraud

Double brokerage occurs when a freight broker takes a load from a shipper and then re-brokers it to another carrier without the shipper's knowledge. This results in multiple brokers taking a cut, reducing the actual carrier's payment and often leading to service issues or non-payment.

Prevention:

• Contracts and Documentation: Insist on clear contracts and documentation that outline the chain of custody for the freight.
• Verify contact details: Check caller ID against the company’s details on the FMCSA website or a reliable source like the DAT Directory. If the numbers don’t match, hang up and call the number listed on the FMCSA website, asking for your contact by name. If the real broker cannot verify your contact, do not accept the load.
• Direct Communication: Maintain direct communication with carriers to confirm they are aware of and have accepted the load.
• Verification Platforms: Use a robust verification platform like Verified Carrier to ensure the legitimacy of carriers that are moving your load. 

2. Cargo Theft

Cargo theft involves the stealing of goods during transit. This can occur through hijacking, deceptive pickups, or insider involvement.

Prevention:

• GPS Tracking: Employ advanced GPS tracking systems to monitor the location of cargo continuously.
• Verify contact details: Check caller ID against the company’s details on the FMCSA website or a reliable source like the DAT Directory. If the numbers don’t match, hang up and call the number listed on the FMCSA website, asking for your contact by name. If the real broker cannot verify your contact, do not accept the load.
• Security Protocols: Implement strict security protocols, including background checks on drivers and employees.
• Verified Networks: Utilize platforms like Verified Carrier that provide continuous vetting of carriers to ensure they adhere to security standards.

3. Identity Theft

Fraudsters may use stolen identities to open new Motor Carrier (MC) numbers, posing as legitimate carriers to commit various fraudulent activities.

Prevention:

• Regular Audits: Conduct regular audits of carrier identities and credentials.
• Secure Information Handling: Ensure that personal and business information is handled securely to prevent data breaches.
• Rigorous Verification: Employ a verification system that checks the authenticity of MC numbers and associated identities, as provided by Verified Carrier.

4. Duplicate Asset Fraud

Fraudsters may attempt to use the same assets, such as trailers or trucks, to register multiple times under different names to gain illicit advantages.

Prevention:

• Asset Tracking: Implement an asset tracking system that ensures each asset is uniquely identified and tracked.
• Regular Inspections: Conduct regular inspections and audits to verify the physical presence and condition of assets.
• Verified Carrier Systems: Use Verified Carrier’s capabilities to identify and flag duplicate asset registrations.

Fraud in the transportation industry can have severe financial and operational impacts. By leveraging advanced verification platforms like Verified Carrier, implementing stringent security protocols, and maintaining vigilant auditing practices, stakeholders can significantly mitigate the risks associated with these common fraud schemes. Ensuring transparency, continuous vetting, and employing cutting-edge technology are critical steps towards fostering a safer and more trustworthy transportation ecosystem.

Take Action Now. Protect your business from fraud and ensure the highest standards of safety and compliance with Verified Carrier. Our comprehensive verification platform is designed to help you navigate and eliminate fraudulent practices in the transportation industry. Join us in building a more transparent and trustworthy transportation ecosystem.