Fraud in the freight world is at an all-time high, and U.S. freight brokers are feeling the impact. From double brokering schemes to stolen carrier identities, scammers are finding new ways to target brokers and shippers. 

Complaints of double brokering soared by 400% recently, costing the industry an estimated $500–$700 million each year. A 2023 survey found 85% of brokers and carriers were affected by double-brokering in just one quarter, with some losing $50,000 to $500,000 on fraudulent loads. 

These numbers are staggering, but there’s good news: by staying vigilant and following best practices, brokers can fight back. This guide breaks down how freight brokers can prevent fraud from trucking carriers – with practical tips on verifying carrier identity, spotting red flags, and leveraging technology. Let’s secure those truckloads and keep your business safe.

Understanding Common Freight Scams (Double Brokering, Identity Theft & Fake Insurance)

Before we dive into prevention, it helps to know what we’re up against. Here are the most common scams freight brokers face today:

• Double Brokering: This is when a carrier (or an illicit broker) accepts a load from you and then re-brokers it to another carrier without your knowledge or the shipper’s consent. The double-broker might pocket your payment and leave the actual carrier (and you) high and dry. It’s illegal – essentially unauthorized brokerage – and it’s rampant in a soft market. 
• Carrier Identity Spoofing: Fraudsters sometimes impersonate legitimate carriers by stealing or “cloning” their USDOT/MC numbers and insurance info. In other cases, an unregistered entity poses as a licensed broker or carrier. The scammer might use a fake website or email domain that looks close to the real carrier’s, hoping you won’t notice. If a “carrier” has all the right documents but something feels off (like differing contact info or a recently activated authority), they could be a ghost carrier using someone else’s identity. FMCSA defines this kind of fraud as when someone uses another motor carrier’s credentials without authorization – and it’s a criminal act.
• Fake Insurance Documents: Another scheme involves forged certificates of insurance. A scam carrier might send you a phony insurance COI showing high coverage, when in reality they have no such policy. If an accident or cargo claim occurs, you discover the insurance was bogus. 

Now that we know the scams, let’s talk about how to stop them. Below are concrete steps and strategies for freight broker fraud prevention that you can start using today.

Verify Carrier Identity and Authority Before You Trust

When onboarding a new carrier or tendering a load, verification is your first line of defense. A common mantra is “verify-then-trust,” not the other way around. Here’s how brokers can verify a carrier’s identity and authority:

• Check FMCSA Credentials: Use the FMCSA’s SAFER database to look up the carrier’s Company Snapshot by USDOT or MC number. Verify that the carrier is actively registered and authorized for property hauling (and not just a brokerage authority). Confirm the company name, address, and phone number on record. If the contact info the carrier gave you doesn’t match FMCSA’s records, that’s a huge warning sign. Call the phone number listed in SAFER and confirm you’re speaking to the actual carrier. Scammers often use disconnected or third-party numbers; a quick call to the official number can expose that. If FMCSA records show no phone number or other gaps for a carrier, do not tender loads until you can verify through another method.
• Confirm Identity Rigorously: Don’t hesitate to ask for multiple forms of verification. Match the carrier’s MC/DOT numbers, insurance policy numbers, and tax ID across all documents. Check if the company email domain and website seem legitimate. Be wary if a carrier’s documents show one company name, but emails or calls come from a different name. The key is to cross-verify details on multiple sources – FMCSA, the carrier’s own website, industry directories, etc.
• Use Authorized Carrier Networks: Consider using vetted sources like TrueNorth and other loadboards that do the heavy lifting for you. This will also potentially provide more context about the carrier's past work history, like ratings and reviews. 
• Verify Driver and Equipment Details: For added security on important loads, some brokers verify the actual truck driver and equipment that will be used. You might request a copy of the driver’s CDL, ask for the truck and trailer number, and even the license plate of the equipment dispatched. Compare these to the info on the rate confirmation or carrier packet. While this level of scrutiny isn’t needed for every load, for high-value or high-risk loads, it adds another layer of verification.

Red Flags That Signal a Fraudulent Carrier

Even with good vetting, you need to stay alert during the course of booking and moving a load. Fraudulent carriers often give off subtle (or not-so-subtle) warning signs. Here are some red flags that experienced brokers watch for:

• Too Good to Be True Rates or Eagerness: Be cautious if a carrier immediately accepts a low rate without any negotiation, or conversely, if they offer to haul a load for far below or above market price. Scammers often dangle unrealistic rates to lure brokers or accept any price just to get the load. Legit carriers usually negotiate; a scammer just wants the paperwork fast.
• Communication Issues: Poor communication is a top red flag noted in fraud cases. This could be a dispatcher who won’t answer basic questions about the driver or route, or a carrier contact who disappears once the load is picked up. If you consistently can’t reach the driver or dispatcher during transit, voicemails are full, or the person answering seems unrelated (e.g., “Which load was this again?” every time you call), it might indicate foul play.
• Unusual Payment Requests: Stay alert if a carrier asks for something odd in terms of payment. For example, if they demand a fuel advance via peer-to-peer apps or want a check made out to a different name than the carrier’s, pump the brakes. In some double-brokering scams, the fraudster will request quick payment or advances and then vanish. Also, if a small carrier that usually factors its invoices suddenly pushes you to pay them directly (and quickly), verify why. 
• Inconsistent or Fake Documents: Always examine carrier documents closely. Red flags include mismatched fonts, missing logos, or info that doesn’t line up. A common scheme is forged insurance certificates – maybe the policy number is real but belongs to another carrier, or the phone number on the certificate is actually the scammer’s Google Voice line. Call the insurance company directly (use a number from a quick web search, not just the certificate) to confirm coverage and dates. Similarly, if the carrier packet W-9 or authority letter looks doctored (blurred text, weird formatting) or has an LLC name that doesn’t match the FMCSA listing, investigate further. 
• “Blind” Shipments or Odd Instructions: Be wary if the carrier or an intermediary tells you not to contact the shipper or gives convoluted reasons for secrecy. For instance, a fraudster might claim “this is a blind load” to discourage you or the truck driver from communicating with the end customer. While blind shipments do exist legitimately, they are specific arrangements, and you should already know if that’s the case before booking. If a carrier suddenly introduces a “don’t talk to the receiver, it’s all blind” rule out of nowhere, that’s a red flag. 

If you spot any of these red flags, pump the brakes. It’s better to pause and double-check than to let a dubious load roll. In many fraud cases, brokers later say, “I had a bad feeling.” Trust your gut when something doesn’t add up.

Tools and Technology for Carrier Monitoring and Fraud Alerts

Modern problems require modern solutions. Thankfully, freight tech companies and industry groups have rolled out tools to help brokers identify risky carriers and automate compliance checks. Here are some ways technology can boost your fraud prevention game:

• Carrier Onboarding Platforms: Instead of manually collecting carrier packets, many brokers use digital onboarding services. These platforms integrate with FMCSA databases to automatically verify authority status, insurance coverage, and safety ratings in real-time. They’ll flag if a carrier’s insurance is below your requirement or if their authority is brand new. Some even check for matching EIN/tax IDs to catch identity mismatches. 
• Real-Time Monitoring & Alerts: Carrier compliance isn’t a “set and forget” task. A carrier might be fine today and sketchy three months later. These tools offer ongoing monitoring of carriers in your network. They’ll send alerts if a carrier’s authority is revoked, insurance cancels or expires, or safety rating changes. 
• Fraud Prevention Databases: TIA Watchdog is a prime example of industry collaboration through tech. Brokers can report fraudulent companies or incidents to a shared database, which in turn allows others to avoid those bad players. 
• Load Board Security Features: Stay updated on the security features of the load boards you use. Enable MFA (multi-factor authentication), use strong passwords, and ensure only authorized staff have access to post or book loads. A compromised broker login can lead to fraudulent postings and stolen load info, so guard your system credentials like gold.
• Advanced Freight Fraud Solutions: Beyond the mainstream tools, there are emerging tech solutions specifically targeting freight fraud. For instance, some TMS or visibility platforms might use geo-tracking to ensure the truck that picks up is the one expected. As a broker, you can also require drivers to use tracking apps – if the truck’s origin doesn’t match the carrier’s home base or it’s taking a weird route, that could signal double brokering. 

Staying One Step Ahead of Fraudsters

Freight broker fraud prevention isn’t a one-and-done checklist – it’s an ongoing effort, a mindset of vigilance. By verifying carrier identity and authority every time, you make it hard for impostors to slip through. By knowing the red flags and trusting your instincts, you can stop a sketchy situation from becoming a financial loss. By double-checking insurance and using technology to monitor carriers, you close the loopholes that scammers exploit. 

The reality is that as long as there is money in trucking, fraudsters will try to steal it. But you are not helpless – far from it. Many brokers are successfully avoiding double-brokering scams and protecting their truckload security by staying informed and proactive. Think of fraud prevention as another aspect of risk management, like vetting customers or diversifying your carrier base. It’s an investment in the long-term health of your business.

At the end of the day, your reputation as a broker is built on trust – with shippers and carriers alike. Protect that trust fiercely. With the actionable steps outlined above, you can fortify your operations against carrier fraud and keep your loads moving safely. 

Stay sharp, stay connected, and don’t let the fraudsters win. Your bottom line and the whole industry will thank you for it.