Expedited freight scams are an increasing concern in the freight industry. October is the official Cyber Security Awareness Month, making this the perfect time to discuss common fraudulent activities that plague shippers, costing business owners more than just money. C&M Transport works with reputable drivers and agents to ensure your cargo is in the safest hands. Here, we explain common scams so they can be avoided and detail what business owners who rely on expedited services should look for.
Common Scams in the Freight Industry
The logistics industry has become a prime target for fraudsters and cybercriminals. The complexity of expedited shipping operations can present vulnerabilities that can be taken advantage of. For business owners wishing to avoid fraud, knowing what to look for is the first step.
The most common types of freight fraud that business owners should be aware of include:
Double Brokering
This scam involves a fraudster posing as a carrier to accept a load from a load board. The imposter then re-posts the load, where it is claimed by a legitimate carrier with the original broker having no knowledge of this activity.
After the load reaches its destination, the legitimate carrier provides proof of delivery to the scammer. The scammer then forwards the proof of delivery to the original broker. Unknowing of any wrongdoing, the company provides payment for the service, and the scam artist makes off before anyone involved realizes there’s an issue.
Double brokering can be damaging because the scam can lead to financial losses, reputational damage, and disrupted operations. Some red flags of a double-brokering scam include a rate that’s too good to be true, or if the fraudster quickly disappears.
Load Board Scams
As the logistics industry has increased in sophistication, so too have criminals wishing to get their hands on cargo. Traditional methods of stealing freight from rest stops, parking areas, warehouses, and distribution centers are outdated.
A freight load board scam is a type of identity theft that involves the use of load boards to impersonate a legitimate carrier and steal cargo. Load boards are online platforms that connect shippers, brokers, and carriers. The scammer has no intention of delivering the cargo to its intended destination.
To pose as a legitimate carrier, scammers often use a legitimate-looking email address to trick inattentive shippers and brokers. The email address will appear almost identical to that of a legitimate carrier but be slightly off. Scammers will add, remove, or change a single character to make the illegitimate email address look indistinguishable. Because criminals falsify their information, it’s extremely difficult to track down the perpetrator and recoup the stolen cargo.
Phishing Scams
A freight phishing scam is a mischievous practice where cybercriminals impersonate legitimate businesses so that they can steal sensitive information from shippers or carriers. They will use this information for personal gains. Scammers often use spoofed emails or fake websites to trick victims into divulging login credentials or financial information.
Business owners, who believe they are being scammed, should contact the shipping company using their official contact details to independently verify delivery statuses and tracking information. Further, business owners should never click on suspicious links or provide personal information without confirming the message’s legitimacy.
Trusted Services at C&M Transport
At C&M Transport, we’re proud to provide premium white glove service to our clients. With our headquarters near Cleveland, Ohio, and 17 additional locations nationwide, our offerings are available across the United States. We work with reputable drivers and agents, along with utilize the most advanced logistics technology, to eliminate the threat of fraudulent activity. Contact us today to learn more about common freight scams and how to ensure you’re not a victim.