How to identify and avoid freight bill frauds

How to identify and avoid freight bill frauds

The logistics and freight industry is worth over nine trillion dollars worldwide. This makes it an attractive avenue for scammers to make easy money. To ensure their safety, companies must take stringent measures, such as hiring reputable contractors and following security guidelines. Being aware of common freight bill frauds and how to avoid them can also help companies keep their shipments and profits safe and sound. Some common scams include:

Fake load booking
In many cases, the scammers work in tandem with drivers to make fake load bookings. Here, they steal the company’s identity and place it on an illegitimate truck. Since this looks legit to an outsider, customers may hand over their shipments for moving. However, this shipment then gets stolen, making one’s company look responsible for the loss.

To avoid this, provide customers with proper bill details and a toll-free number so customers can verify the company’s identity.

Double brokering
Many companies also engage in double brokering, where goods are transferred from one freight carrier to cheaper options without any authorization. This increases the risk of losses, thefts, and delays. Companies must always be notified in case of such transfers and receive formal documentation to maintain transparent transactions.

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