The Freight Fraud Epidemic: What Every Dispatcher Needs to Know

The freight industry isn’t just the backbone of commerce; it’s a living, breathing ecosystem that moves billions of dollars in goods every day. For freight dispatchers like you, this ecosystem is a mix of opportunity and chaos—juggling carriers, shippers, and tight schedules. But while you’re working overtime to ensure loads get where they need to go, there’s a darker undercurrent threatening the industry: freight fraud.

If you’ve been in the trenches for a while, you’ve likely seen it or heard about it. The bad actors. The fake loads. The carriers who disappear into thin air. It’s not just frustrating—it’s costly. Freight fraud isn’t new, but its rise in recent years has been alarming. Let’s unpack why it’s happening, what’s at stake, and how you can arm yourself to fight back.

What Is Freight Fraud?

Freight fraud comes in many flavors, but at its core, it’s deception for financial gain. The most common schemes include:

1. Double-Brokering: A fraudulent entity takes a legitimate load from a broker, re-posts it on another load board, and books it with an unsuspecting carrier. The carrier hauls the load but doesn’t get paid because the fraudster pockets the payment and vanishes.

2. Fake Carriers: Scammers set up bogus carrier profiles with falsified MC numbers, insurance documents, and addresses. They take deposits or payments upfront but never move the load.

3. Cargo Theft: While less common than digital scams, some fraudsters use falsified credentials to pick up loads, only to disappear with the freight.

4. Load Board Phishing: Fraudulent entities use load boards to lure dispatchers or carriers into providing sensitive financial or business information, which they later exploit.

Each scam preys on trust and urgency—two things the freight industry thrives on but also can’t afford to misplace.

Why Freight Fraud Is on the Rise

Freight fraud isn’t a new phenomenon, but the rapid digitization of the industry has created fertile ground for scammers. Here’s why:

• Low Barriers to Entry: Setting up as a broker or carrier requires basic documentation, much of which can be forged with today’s technology. Scammers exploit these loose entry points to infiltrate the industry.

• High Demand: The supply chain disruptions of recent years have increased the pressure on dispatchers to secure loads quickly. This urgency makes it easier for scammers to slip through the cracks.

• Remote Operations: The shift to digital platforms and remote work means fewer in-person verifications and more reliance on virtual trust.

• Lack of Standardization: Despite the size of the industry, there’s a surprising lack of standardization across digital tools, load boards, and verification processes, making it easier for fraudsters to operate.

The Cost of Fraud

The financial toll of freight fraud is staggering. Industry estimates suggest that fraud costs the trucking and logistics sector hundreds of millions of dollars annually. But beyond the numbers, there’s a ripple effect:

1. Lost Revenue: When loads go unpaid or cargo is stolen, it’s not just the immediate loss. It’s the time and resources spent chasing payments or dealing with insurers.

2. Damaged Reputation: As a dispatcher, your credibility is everything. Getting caught up in fraudulent transactions can tarnish your reputation with carriers and brokers.

3. Operational Disruption: Fraud doesn’t just cost money—it costs time. Sorting out fraudulent claims can bring your operations to a grinding halt.

How Dispatchers Can Fight Back

The good news? You’re not powerless. By tightening your processes and staying vigilant, you can significantly reduce your exposure to fraud. Here are actionable steps you can take:

1. Vet Your Partners Thoroughly

1. Verify MC Numbers: Use tools like the AizenFlow or FMCSA’s SAFER system to check the legitimacy of carriers and brokers.

2. Cross-Check Documentation: Don’t take insurance certificates or DOT numbers at face value. Call the issuing company to confirm validity.

3. Check Reviews: Load boards and industry forums often have reviews or feedback about carriers and brokers. Use them.

2. Use Secure Platforms

• Stick to reputable load boards with robust verification processes. Avoid lesser-known platforms that don’t require stringent checks.

• Ensure your own systems are secure—invest in cybersecurity measures like encrypted communication and multi-factor authentication.

3. Establish Clear Protocols

• Require signed agreements with carriers and brokers that outline terms and penalties for non-compliance.

• Confirm pickup and delivery details directly with shippers and receivers, bypassing third-party intermediaries when possible.

4. Trust Your Instincts

• If a deal feels too good to be true, it probably is. Watch for red flags like unusually low rates, high-pressure tactics, or inconsistencies in communication.

5. Stay Informed

• The landscape of freight fraud is constantly evolving. Regularly educate yourself on emerging scams and best practices through industry webinars, publications, and forums.

The Role of Technology

Technology is both the battleground and the solution. Fraudsters exploit gaps in digital systems, but advanced tools are also helping to close those gaps. Blockchain, for instance, is being explored as a way to create tamper-proof records of freight transactions. Similarly, AI-powered analytics can identify suspicious patterns in load postings or payment histories.

As a dispatcher, keeping up with these tools can give you a competitive edge while reducing your risk of falling victim to scams.

Turning the Tide on Fraud

The freight industry is resilient. It’s survived economic upheavals, technological revolutions, and global pandemics. But that resilience depends on the people within it—the dispatchers, drivers, brokers, and shippers who keep the wheels turning. Fighting freight fraud isn’t just about protecting your business; it’s about safeguarding the integrity of the entire ecosystem.

Stay sharp. Stay informed. And most importantly, trust but verify. The more proactive you are, the harder it becomes for fraudsters to thrive in this space.

Remember: the dispatchers who succeed aren’t just the ones who hustle the hardest. They’re the ones who think smarter, adapt faster, and refuse to let bad actors dictate the game.