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Freight fraud is costing the US shipping market millions

By May 9, 2023No Comments

Executives say truckers and freight brokers are being duped in bigger numbers by bogus operators impersonating the sector’s middlemen.

Freight fraud is spreading across trucking networks as tech-savvy operators impersonating middlemen skim off payments for shipping goods that can total thousands of dollars, industry executives say.

The fraudulent tactic, long a nagging problem in trucking, has gained momentum in the past two years as the business of matching loads to trucks has moved online and heated competition for shipments has cut short the time spent checking the backgrounds of businesses.

Carrier-payments platform TriumphPay, a division of Dallas-based TBK Bank SSB, estimates at least $500 million to $700 million of shippers’ and brokers’ freight payments are going to double brokers annually.