Market Insights

How carriers can protect their business from fraud

Each year the United States freight market generates about $750 billion. That figure equates to significant personal success for many who make their living in trucking – but it also makes our industry an attractive target for fraud.

One of the most common variations of cargo fraud is “double-brokering.” That’s when a company posing as a carrier is awarded a load from a broker. They then turn around and “rebroker” that load to another carrier.

If that sounds shady, there’s a good reason. It’s illegal. It puts the broker and shipper at risk since they don’t know who’s actually hauling the load, and in many cases, the company pretending to be a broker has no intention to pay the carrier that delivered the load.

Luckily, there are a few things you can do to help eliminate that risk to your business.

Do your research
Double-check the contact information for any new broker you call. You can even verify that contact info against the DAT One directory, and read (and write) reviews for that company. Leaving reviews for brokers you have a good relationship with is also helpful for weeding out double-brokering scams.

Stay current
It’s a common practice among scammers to search old, outdated phone numbers and addresses they can use to pose as someone they’re not. You can avoid falling into this trap by ensuring all your directory data is up to date, including in the FMCSA and DAT directories.

Trust but verify
If someone is offering you rates that sound too good to be true, it’s a red flag. Someone engaged in double-brokering might quote you an unfathomable rate because he or she ultimately has no intention to pay for the load at all. You can keep your finger on the pulse of the markets with rate data inside the DAT One load board. See the going market rates with every lane using the Quick Rate lookup tool.

Educate yourself
Don’t just ask “what’s it weigh; what’s it pay?” Dig into the details of each load: commodity, pickup and drop-off locations, appointment times, etc. The extra effort you expend to acquire this information will allow you to make better business decisions and price your services for maximum benefit. It’s also information scammers are less likely to know.

DAT is committed to a safe and secure truckload marketplace, which is why we strive to provide as much information as possible for you to make the clearest business decisions. If you’ve been the victim of a cargo scam or suspect a bad player on our network, report it immediately. We’ll help.

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