Arm Your Business Against Broker Fraud

Beware of Broker Fraud

Know The Signs And Protect Your Business

Freight rates are high which is great news for truckers. But, watch out! High rates make it easier for fraudulent brokers to take advantage of carriers. Protect yourself and your company from bad freight deals.

Do the rates make sense for the lanes?

$6 per mile sounds great but is that rate typical for the lane? If similar lanes are only paying $3 per mile then be wary of that $6 per mile offer. If something sounds too good to be true, it probably is. Pay attention to rate trends and approach outliers with skepticism.

Use a Credit Check System

Read your BOL and rate confirmation. Watch out for inconsistencies. Utilize a credit check system, especially if you have never used a particular broker before. TAFS built our credit check database over the past 10 years and it is tailored to helping our clients. Verify the broker’s AND the shipper’s information. Does it match the load information? Make sure you are agreeing to haul for an actual business.

Company Names

Verify the names are consistent throughout all of the load paperwork. If your company is ABC Trucking, but the BOL says you are XYZ Trucking, this may be a case of fraud. The same goes for the broker’s information. Think twice about accepting a load if you receive it from ZZZ Broker but the BOL lists ZZO Broker.

Be careful with similar names too. Similar names could mean a legitimate broker was hacked. For example, England Logistics is a real broker. England Transport Logistics is not.

Emails

Pay attention to who sends you the initial rate confirmation. Does the sender match the email in the credit check system? Does it come from a company email or a Yahoo/Gmail account? Note: most brokers do not use Gmail accounts. If the sender information is inconsistent, it may be a scam.

Phone Numbers

Another way to verify paperwork information is to run an internet search. Look up the company online. Does the phone number you find online match your paperwork? Call the main office number to confirm the rate confirmation.

MC Number

Low MC numbers do not always indicate an established business. Check the MC number against the credit check system or the FMCSA website. Does the MC number match the company name on your paperwork?

Pay attention to red flags. If something does not look right, contact your Relationship Specialist. Ask us for help. We want to help your business succeed.

By | 2018-01-25T11:41:48+00:00 January 24th, 2018|Trucking Business Tips|0 Comments

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