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Not sure where to post this, I read it on a USA based freight broker forum, I dont know if it is against forum rules to post links to other forums so I will copy and pate the text
The Double Broker Bounty Hunter here. I am also the Director of Fraud Prevention at the National Owner Operator Association (NOOA). There is not a part of this scam that we have not analyzed and mitigated through education, mostly to carriers (who will listen). Every time we think we have the scammers figured out they change tactics. Every time they do, my team reverse engineer the scam to develop defenses. Every couple of months, a new element is introduced.
Here is the latest twist: impersonating the SHIPPER. Scammers are using legit carrier MCs to book loads like usual (their own fake carrier MCs or stealing MCs off SAFER). Here is the twist… the scammer acts as a SHIPPER and hires another broker to procure a carrier.
This scam specifically preys on Brokers. Small and medium brokers are always looking to increase their book of business so when a scammer posing as a big box retail Transportation Manager calls, hungry brokers are more than willing to earn their business and set up a trial with the new shipper customer, and the scamming shipper starts feeding the new broker loads that the scammer booked.
The broker then unknowingly double brokers the load to a carrier. The carrier submits their invoice and is paid. The paperwork gets back to the original broker, and the scammer is paid as the carrier. The broker who was scammed is not paid.
There could literally be dozens of loads that the broker unknowingly double brokered and they don’t realize it until the new “shipper” fails to pay the bills. The second broker is now on the hook for hundreds of thousands that they won’t be paid, and can be accused as a double broker earning a $10k fine for every occurrence by DOT.
This is the most dangerous DB scheme yet, and can drive a small or medium broker out of business in as little as 30 days.
Brokers, vet your shippers very carefully. New shipper comes along, verify the people you are working with by contacting the corporate logistics department to verify the individual.
We are working to reverse engineer this to develop defenses, but if you don’t know the shipper from a long term relationship, verify the identity.
When we have a viable defense in place, we will share it with the group. As always the only sure fire method of a real broker to ensure their load is not scammed is verification at the shipping location. This requires however that the shipping warehouse or 3PL takes the time to verify the driver and carrier info on the side of the truck. If the load fell into the hands of a scammer, you will at least know what carrier really has the cargo, and make contact with the carrier using SAFER info. You have no idea how may attempted double brokerings and cargo theft attempts the DBBH have thwarted this way at the request of our broker clients.
We have hit the point that scammers are causing not only carriers and brokers to be suspicious of each other, but now they are dragging the shippers into the crossfire.
Brokers, be good to your shippers, and don’t try to hide the problem. Coach them to instruct their warehouses and 3PLs to improve their checkin logs so these loads can be positively tracked on paper. It may be the only way to figure out what happened to a stollen load or who really needs to be paid on a double brokered load. Consider a third party audit team to follow suspect loads or random loads by having the team coordinate with shippers and receivers to verify carriers.
These scammers are not opportunistic carriers trying to make a few bucks on the side. These are professional international con artists who are stealing BILLIONS from this industry annually. They are using some of the money to develop new ways to infiltrate the industry to perpetuate their earnings indefinitely, or finance other sophisticated scams in other industries that they may be involved in. We have to be open with each other, all parts of this industry, to make it easier to identify these scammers as they come around.
The Double Broker Bounty Hunter here. I am also the Director of Fraud Prevention at the National Owner Operator Association (NOOA). There is not a part of this scam that we have not analyzed and mitigated through education, mostly to carriers (who will listen). Every time we think we have the scammers figured out they change tactics. Every time they do, my team reverse engineer the scam to develop defenses. Every couple of months, a new element is introduced.
Here is the latest twist: impersonating the SHIPPER. Scammers are using legit carrier MCs to book loads like usual (their own fake carrier MCs or stealing MCs off SAFER). Here is the twist… the scammer acts as a SHIPPER and hires another broker to procure a carrier.
This scam specifically preys on Brokers. Small and medium brokers are always looking to increase their book of business so when a scammer posing as a big box retail Transportation Manager calls, hungry brokers are more than willing to earn their business and set up a trial with the new shipper customer, and the scamming shipper starts feeding the new broker loads that the scammer booked.
The broker then unknowingly double brokers the load to a carrier. The carrier submits their invoice and is paid. The paperwork gets back to the original broker, and the scammer is paid as the carrier. The broker who was scammed is not paid.
There could literally be dozens of loads that the broker unknowingly double brokered and they don’t realize it until the new “shipper” fails to pay the bills. The second broker is now on the hook for hundreds of thousands that they won’t be paid, and can be accused as a double broker earning a $10k fine for every occurrence by DOT.
This is the most dangerous DB scheme yet, and can drive a small or medium broker out of business in as little as 30 days.
Brokers, vet your shippers very carefully. New shipper comes along, verify the people you are working with by contacting the corporate logistics department to verify the individual.
We are working to reverse engineer this to develop defenses, but if you don’t know the shipper from a long term relationship, verify the identity.
When we have a viable defense in place, we will share it with the group. As always the only sure fire method of a real broker to ensure their load is not scammed is verification at the shipping location. This requires however that the shipping warehouse or 3PL takes the time to verify the driver and carrier info on the side of the truck. If the load fell into the hands of a scammer, you will at least know what carrier really has the cargo, and make contact with the carrier using SAFER info. You have no idea how may attempted double brokerings and cargo theft attempts the DBBH have thwarted this way at the request of our broker clients.
We have hit the point that scammers are causing not only carriers and brokers to be suspicious of each other, but now they are dragging the shippers into the crossfire.
Brokers, be good to your shippers, and don’t try to hide the problem. Coach them to instruct their warehouses and 3PLs to improve their checkin logs so these loads can be positively tracked on paper. It may be the only way to figure out what happened to a stollen load or who really needs to be paid on a double brokered load. Consider a third party audit team to follow suspect loads or random loads by having the team coordinate with shippers and receivers to verify carriers.
These scammers are not opportunistic carriers trying to make a few bucks on the side. These are professional international con artists who are stealing BILLIONS from this industry annually. They are using some of the money to develop new ways to infiltrate the industry to perpetuate their earnings indefinitely, or finance other sophisticated scams in other industries that they may be involved in. We have to be open with each other, all parts of this industry, to make it easier to identify these scammers as they come around.
