How Shippers, Brokers, Carriers, and Drivers Can Fight Freight Fraud (And Why They Need To)
Freight Fraud Is Booming And It’s a Problem for Everyone
Transportation fraud isn’t just a nuisance, it’s a growing, multi-million-dollar problem in North American logistics. From double brokering to stolen loads and hijacked payments, fraudsters are getting bolder and smarter.
And no one is immune.
Whether you’re a shipper, broker, carrier, or driver, the only way to stay ahead is to stay informed, and be proactive. Below, we break down exactly what each party can do to reduce risk and keep freight flowing safely.
The Stats Don’t Lie
$500–700 million is lost each year due to double brokering and freight fraud.
86% of brokers who've been defrauded say it was via double brokering.
Cargo theft surged 600% in just five months, with average losses per scam at $400,000.
This isn’t rare anymore. It's an epidemic. But it’s also mostly preventable, if everyone does their part.
Due Diligence by Role
Shippers: You’re the Starting Point
Shippers are often the first line of defence, and a prime target for fraud. Your job? Stay vigilant from the jump.
Verify truck, trailer, and driver details, write it all on the BOL (driver copy included, send copies to broker/dispatch and the receiver).
Use seals and internal tracking (even AirTags in a pallet can help).
Vet brokers and carriers with FMCSA or provincial tools.
Verify certificates of insurance (COIs) with the provider and ask to be listed as certificate holder for automatic updates.
Pay fairly and on time, including accessorials. It reduces the incentive for shady behavior.
Read all contracts and confirmations before signing.
Request annual audits of your carriers and drivers.
Practice radical transparency: You should know who the actual driver is. They should know you. No secrets. No gatekeeping.
Brokers: You’re the Middle Person Act Like It
Brokers are the glue, but also a top target. It’s time to tighten up.
Vet every carrier and shipper. No assumptions, no shortcuts.
Log tractor, trailer, and driver info on paperwork and in your systems.
Require real-time tracking, there are options even for small fleets.
Trace shipments at least twice a day.
Verify COIs and be listed as a certificate holder.
Read every contract and agreement before clicking “accept.” Strongly suggest having a lawyer look them over.
Conduct regular audits of your vetting and compliance processes.
Pay carriers fairly and on time, including accessorials.
Build real relationships with your carrier reps and shipper contacts.
Practice radical transparency: The shipper should know who’s hauling the load. The carrier should know who the customer is. Don’t withhold information to gain leverage, it erodes trust and opens the door to fraud.
Carriers: Know Who You’re Hauling For
Carriers can be exploited just like anyone else, and sometimes used unknowingly in scams.
Vet your brokers and shippers before accepting a load.
Share complete and accurate tractor, trailer, and driver info.
Use tracking tools and make sure your systems are working and current.
Pay drivers fairly and train them on the freight they haul.
Audit drivers regularly, for licenses, safety records, and general vetting.
Educate your team on contract terms, shipper requirements, and how to spot red flags.
Practice radical transparency: Make sure everyone in your operation knows who they're working with, what’s being hauled, and what expectations exist. Communicate openly and clearly.
Drivers: Don’t Get Caught in the Crossfire
Drivers are the last line of defence. Empower yourself.
Vet the carrier before signing on. Know your rights.
Understand your shippers and your freight, especially the risk, value, and handling.
Read your contract. If something’s unclear, ask a lawyer.
Educate yourself regularly, the fraud tactics evolve fast.
Be transparent with dispatch, brokers, and shippers. Share any concerns about route changes, delays, or sketchy requests.
What We Mean by “Transparency”
When we say practice transparency, we mean the full deal:
Shippers should know who the driver is.
Carriers should know the customer.
Brokers should not be gatekeeping basic info.
No backdooring. No ghosting. No sneaky side deals.
Transparency is about keeping the right people in the loop at all times. Not just because it’s ethical and good business, but because fraud thrives in the shadows. Check out our post about transparency for more on this topic.
Final Thought
Freight fraud doesn’t care how experienced you are. It looks for gaps, gaps in communication, gaps in verification, and gaps in accountability.
Instead of finger pointing, let’s work together to close those gaps.
Due diligence isn’t extra work. It’s the price of staying in business.
