Trust keeps the freight industry moving. It connects shipments, payments, and long-term business relationships. But freight fraud is quickly becoming one of the most disruptive and expensive threats brokers face today.
Freight fraud refers to intentional scams that target your money, cargo, or sensitive information. According to the Transportation Intermediaries Association (TIA), nearly one in four freight brokers lost over $200,000 to fraud in just six months. Most of those losses hit small and mid-sized brokerages.
Freight fraud is widespread, costly, and constantly evolving. But it can be prevented. When you understand how scams work and build stronger vetting habits, you can protect your brokerage from serious financial and operational damage.
This guide explains what freight fraud looks like, highlights common red flags, and offers practical ways to prevent it. You’ll also learn about tools that help you detect fraud sooner and how working with partners like Denim can make your fraud prevention strategy even stronger.
We surveyed nearly 100 shippers to understand what drives their decisions and frustrations. Price matters—but service, communication, and back-office ease matter more.
What is freight fraud?
Freight fraud is intentional deception to steal money, loads, or sensitive business data. It is not an accident or a delayed payment. It is a scam designed to take advantage of trust in the shipping process.
These scams can show up in different ways. Some involve stolen identities, double brokering, fake documents, or carriers that never show up. Others use digital tools to spoof contact details and forge paperwork.
What makes fraud so dangerous is how real it can look. If you are not watching closely, it is easy to miss the signs until it is too late.
Why freight fraud is growing
The tactics behind freight fraud aren’t new. Schemes like impersonating carriers, falsifying documents, or intercepting payments have been around for decades. What’s changed is how easy it’s become to execute them.
Before digital tools, pulling off a scam meant making phone calls, forging paperwork by hand, or physically showing up to claim a load. The time and risk involved made large-scale fraud difficult to scale.
Today, that’s no longer the case. Fraudsters can create fake rate confirmations, insurance certificates, and even entire company profiles in minutes. They spoof email domains, clone websites, and use burner phone numbers to impersonate legitimate businesses - all without ever stepping foot near a truck.
AI has only accelerated this trend. As Chad Capooth, VP of Operations at Denim, puts it, “AI has lowered the barrier to entry for fraud. Anyone with an internet connection can now generate convincing documents, spoof real companies, and inject themselves into a shipment. That makes it harder than ever to know who you're really working with.”
Fast-paced freight operations create risk. Loads are booked in minutes, leaving little time for due diligence. High turnover, limited verification, and remote operations leave gaps fraudsters know how to exploit.
In tough markets, those gaps grow wider. When volume is down and margins are thin, desperation sets in. More people are willing to take risks, cut corners, or exploit weaknesses.
It’s no surprise, freight fraud incidents have surged 1,500% since 2021. It’s no longer a fringe concern — it’s a widespread threat to how modern freight is booked, moved, and paid for.
To protect your business, it’s critical to understand what these scams look like and how to recognize them early. Let’s take a closer look at the most common freight fraud schemes happening today.
Common types of freight fraud
Fraud in freight isn’t always elaborate. Often, it’s a simple deception that slips through during a busy day. Here are the most common schemes brokers and carriers face today.
1. Identity theft
Identity theft in freight happens when scammers impersonate legitimate brokers, carriers, or shippers to steal money, loads, or sensitive information. Fraudsters often spoof email addresses, forge documents, or hijack MC and DOT numbers to appear legitimate.
Example: A broker receives a load request from what looks like a known shipper, but the email domain is slightly off. After the load is delivered, the real shipper denies booking it, and the invoice goes unpaid—costing the broker $8,000.
Why it matters: In Q1 2025, Highway, a freighttech company that focused on fraud prevention, blocked over 352,000 fraudulent inbound emails, 30,900 spoofed calls, and 400,000 fraud attempts. Most instances involved impersonation or stolen credentials.
2. Cargo theft
Cargo theft involves physically stealing goods — either the entire trailer or part of a shipment. This can happen through stolen equipment, hijackings, fictitious pickups, or theft at rest areas and warehouses.
Example: A criminal posing as a carrier shows up for pickup with fake ID and paperwork. The load is released and never delivered.
Why it matters: According to the American Trucking Association, reported thefts in Q4 2023 totaled over $130 million. Food, beverages, and household goods were among the most frequently targeted.
3. Double brokering
Double brokering happens when a load is illegally passed to another broker or carrier without approval from the shipper or original broker. A fraudulent middleman inserts themselves, collects payment, and disappears — leaving the actual carrier unpaid and the broker tangled in a dispute.
Example: A broker books a load with what they believe is a legitimate carrier. That carrier secretly rebrokers it. The second carrier delivers the freight, but the scammer takes the payment and vanishes. The result: the carrier isn’t paid, the broker owes twice, and the shipper’s trust is damaged.
Why it matters: Truckstop.com has reported a 400% increase in double brokering complaints since 2022. These scams often lead to lost loads, unpaid drivers, and legal entanglements.
4. Phantom shipments
Phantom shipment fraud involves billing for a load that doesn’t exist. Unlike double brokering — where a real load is delivered by the wrong party — phantom shipments are entirely fabricated. Fraudsters use forged documents like BOLs and PODs to collect payment for a load that was never moved.
Example: A fake broker submits delivery paperwork that looks legitimate. But when the shipper checks, no pickup ever occurs. By then, payment is already in motion.
Why it matters: These scams can evade detection until after payment is made, and leave you to chase down funds for a load that never existed.
5. Payment fraud
Payment fraud targets the financial side of freight — and it’s growing fast. These schemes involve manipulating invoicing or banking processes to reroute payments. Tactics can include fake invoices, altered payment instructions, or impersonating a carrier or factoring company to get paid fraudulently.
Example: A broker receives what looks like a routine request from a carrier to update their banking information. The logo and email signature match what they’ve seen before. But the email is fake, and the updated account belongs to a fraudster. By the time anyone notices, thousands of dollars have been transferred to the wrong account.
Why it matters: Payment fraud doesn’t require stealing freight — it just exploits trust and process gaps. Even a single case can cost tens of thousands of dollars and lead to strained relationships between brokers, carriers, and factoring partners.
Red flags and early warning signs of freight fraud
Fraud in freight doesn’t always start with something dramatic. More often, it begins with something that just feels off like a detail that doesn’t line up or a response that seems rushed.
Recognizing red flags early is one of the best ways to stop freight fraud before it causes serious damage.
1.Unusual communication patterns
Most legitimate brokers and carriers communicate through established business channels. If someone only wants to text, avoids phone calls, or pressures you to confirm loads quickly, take notice.
Watch for:
- A sudden sense of urgency or pressure to QuickPay immediately
- Text-only communication with no verifiable phone calls
- Inconsistent stories or incomplete answers to basic questions
These tactics are often used to sidestep verification steps and push a transaction through before anyone has time to double-check.
2. Suspicious contact or company information
Fraudsters frequently impersonate legitimate businesses using small changes that can be easy to miss. Verifying contact details and company credentials should be part of your standard process, not just a gut check.
Be cautious if:
- The email uses a free provider (like Gmail or Outlook) instead of a business domain
- Phone numbers, addresses, or MC/DOT details don’t match FMCSA records
- A company appears recently formed or has no digital presence
Always verify MC numbers, DOT status, and insurance coverage through official sources. Discover the best free MC checkers in our article.
3. Problematic paperwork
Forged, reused, or fake paperwork is a major part of many freight fraud schemes. Even experienced professionals can miss small signs of back-office manipulation when under pressure.
Review documents for:
- Insurance certificates that don’t match the carrier or time period
- Rate confirmations or PODs with reused formatting, low resolution, or inconsistent data
- Missing driver or vehicle information
When in doubt, call the carrier or broker using previously verified contact information to confirm the documents are legitimate. Dive deeper into POD fraud examples in our latest article.
4. Driver and equipment mismatches at pickup
What happens at the dock can reveal a lot. Fraud schemes involving ghost trucks or double brokering often rely on an unapproved driver showing up in a vehicle that doesn’t match the dispatch.
Confirm details at pickup:
- Driver name and ID matches your records
- Truck and trailer numbers match the BOL
- The driver can explain who dispatched them and where the load is going
If any of these don’t add up, do not release the freight until you’ve verified the carrier and driver through official channels.
5. Unverified bank or payment changes
Scammers often target payments directly by impersonating carriers or factoring companies and requesting banking or payment updates.
Stay alert for:
- Bank changes from unfamiliar or new contacts
- Typos in email domains or account numbers
- No confirmation via a previously verified contact
Always verify payment details using contact info you already trust, not the one included in the request.
6. Lack of load visibility
Fraudsters often avoid track-and-trace systems. If a carrier goes dark after pickup or pushes back on using visibility tools, it could be a sign of ghost trucking or cargo theft.
Follow up when:
- A carrier refuses to use your tracking platform
- Location data suddenly drops off without explanation
- The driver cannot confirm route updates or ETAs
Visibility gaps are often overlooked fraud indicators in freight, but they signal the early stages of a larger problem.
Freight fraud prevention to protect your trucking company
Freight fraud is designed to slip past busy teams. But with the right habits, tools, and partnerships, you can spot issues early and stop scammers before they cause damage.
Build clear internal processes
Create a simple verification checklist for your team or use our Fraud Checklist.
Every time you onboard a carrier, broker, or shipper, require consistent steps like verifying contact information, checking for MC activity history, confirming insurance details, and reviewing Google or FMCSA records. Don’t allow urgent timelines to shortcut this process.
Make it easy for employees to flag something that seems off: A documented escalation path helps your team act quickly without second-guessing themselves.
Train your team to spot red flags
Fraud doesn't always look like a scam. It might come in the form of a legitimate-looking document, a new payment request, or a slightly-off company name.
Ongoing training keeps your team alert to the subtle signals — like mismatched emails, missing rate confirmations, or suspicious requests for payment updates.
Schedule regular fraud prevention refreshers. Use real-world examples from news stories or internal experiences to help your team connect the dots.
Use technology to validate and protect
Fraudsters rely on gaps in visibility. Tools that track loads, verify driver identity, and upload documents in real time help close those gaps.
Look for systems that flag mismatched credentials, duplicate documents, or suspicious activity. Some TMS platforms now include fraud signals like MC status, insurance checks, and double brokering reports to help you vet carriers before assigning the load.
These safeguards make it harder for fraud to slip through unnoticed.
Work with a financial partner that reduces risk
Factoring and payment partners like Denim add another layer of defense against freight fraud.
At Denim, we:
- Perform credit checks on shippers before extending credit, helping you avoid non-paying or suspicious customers.
- Facilitate payments through secure, verified workflows so you never have to re-enter bank details or manage manual invoices.
- Integrate with Highway, Carrier Assure, MyCarrierPortal (MCP), and FreightValidate to pull in verified carrier data, reducing manual input and cutting down the chance of fraud.
- Provide reporting and visibility so you know where payments stand — and who they’re going to at every step.
You don’t have to catch every scam yourself. By working with a partner who’s invested in your success, you can stay focused on running your business while knowing someone is watching the details.
Turn fraud prevention into a competitive advantage
By reading this guide and putting new strategies into action, you’re already ahead of most. You’re building stronger processes and protecting your business from freight fraud. Now it’s time to make sure your customers know it.
Shippers aren’t just focused on rates and service. They’re paying attention to how brokers handle fraud. At a recent Transportation Marketing & Sales Association (TMSA) panel, shippers shared how fraud has disrupted their operations — and how brokers play a key role.
“We’ve received bogus bills. We’ve paid the bill, and then the broker comes to us asking for payment. We refuse to pay again,” said Bill Herring of Quikrete. “Brokers are the biggest issue. Are you vetting the partner?”
If you’re taking fraud prevention seriously, don’t keep it quiet.
Share your process. Talk about how you vet carriers, monitor for red flags, and protect cargo. Highlight your tools, your network, and the safeguards you’ve put in place. Make it easy for shippers to say, “This broker is protecting my freight.”
Brokers who lead with transparency and trust aren’t just reducing risk; they’re winning business.
There's a better way
Denim’s automated solutions streamline your back-office operations. Explore our solutions to see how Denim can help your business scale efficiently.
Freight fraud is becoming more frequent, more sophisticated, and more costly. From identity theft to phantom loads, scams are evolving faster than ever - but so are the defenses. By reading this guide and putting these strategies into practice, you’re already ahead of the curve.
Preventing fraud isn’t just about protecting your own business. It’s about safeguarding your shipper relationships, ensuring carriers get paid, and creating a more trustworthy supply chain. And you don’t have to do it alone.
Denim helps you reduce risk by handling shipper credit checks, managing payments and collections, and integrating with trusted fraud prevention tools. If you’re ready to strengthen your back office and protect your cash flow, talk to our team to get started.
