Avoiding Freight Scams: Red Flags to Watch Out For

The trucking and logistics industry is a critical pillar of global commerce, but it’s also a prime target for fraudsters looking to exploit shippers and carriers. Freight scams can result in lost shipments, financial losses, and operational disruptions. Whether you’re a shipper, broker, or carrier, understanding the red flags of potential scams can help protect your business.

Common Types of Freight Scams

Double Brokering

Double brokering occurs when a freight broker illegally re-brokers a load to another carrier without the shipper’s consent. This can lead to unpaid freight bills, cargo theft, and severe legal issues.

Red Flags:

• A broker who refuses to provide clear documentation.
• Carrier payments getting delayed or missing.
• Multiple brokers involved in a single load without explanation.

Identity Theft and Fake Carriers

Scammers often impersonate legitimate carriers or brokers using stolen Department of Transportation (DOT) and Motor Carrier (MC) numbers. They take loads and disappear without delivering them.

Red Flags:

• Slight variations in company names or contact details.
• Requests for payments to be wired to personal accounts instead of company accounts.
• No verifiable online presence or website.

Freight Payment Fraud

Fraudsters sometimes pose as legitimate brokers or shippers and issue fraudulent checks or stolen credit cards for payment, leaving carriers unpaid for their services.

Red Flags:

• Brokers pushing for quick payments through unconventional methods.
• Suspiciously high freight rates that seem too good to be true.
• Delays in payments without any valid reason.

Ghost Loads and Load Board Scams

Scammers post non-existent loads on freight marketplaces to collect carrier information or extract upfront payments under false pretenses.

Red Flags:

• Loads posted without proper details about pickup/delivery locations.
• Brokers who refuse to provide an active MC number.
• Requests for upfront payments before pickup.

Fake Factoring Companies

Some scammers pose as factoring companies, promising quick cash flow for carriers but instead steal payments meant for them.

Red Flags:

• Factoring companies with no track record or online reviews.
• Requests to change payment details at the last minute.
• No verifiable business address or history.

How to Protect Yourself from Freight Scams

Verify DOT and MC Numbers – Always cross-check carrier and broker credentials on the FMCSA website.

Conduct Background Checks – Research every broker, shipper, and carrier before doing business with them. Look for reviews and complaints on platforms like DAT, Truckstop, and BBB.

Use Secure Payment Methods – Avoid wire transfers and personal checks. Use trusted payment systems and factoring companies with verified track records.

Watch for Unusual Communication – Be wary of brokers or shippers who avoid phone calls, use generic emails, or pressure you into rushed agreements.

Trust Your Instincts – If something seems too good to be true, it probably is. Double-check everything before proceeding.

By staying vigilant and recognizing these red flags, you can safeguard your business from freight scams and maintain smooth, secure operations in the trucking industry.