Stolen carrier and broker authorities is on the rise. It’s terrible that this is part of the double brokering discussion. It wasn’t too long ago that double brokering referred to bad people who would set up a carrier and broker authority with the sole purpose of double brokering loads. This was a very profitable business model for the criminals. Even if they purchased a brand-new truck, insured the truck, paid for all the other startup expenses, it was still a small investment with huge returns.
We learned what to watch for with these criminals. It’s crazy what the vetting process has become for legitimate freight brokers. Many brokers routinely deny a carrier access to their freight because of the owner of the companies last name, or who they have their insurance with. And it’s not hard to find out if a phone number associated with a fake carrier is routed from another country.
Brokers and carriers look for guidance from individuals like Tim Bannon, Carrier Vetting, Freight Validate, Joe Howard, and many others that fight this problem, and are willing to point a nervous freight broker in the right direction. Carrier setup platforms also have their own systems for flagging double brokers. And there are many newsletters like this one that help bring attention to this problem.
But I think it is changing, and not necessarily for the better. As honest people get better at vetting, and smarter about their carrier choices, the criminals find other ways to steal from you. And the agencies with the power to end this, are struggling to figure out how to deal with the growing problem. It is not uncommon now for carrier and broker authorities to be compromised. Once a legitimate carrier makes the mistake of setting up with a fake broker, the criminals can replicate the carrier’s documents, create an email address, and start double brokering loads under a legitimate carriers MC without them knowing, until they start seeing bad reports that they had nothing to do with. On the other end, when a fake carrier receives a legit brokers rate confirmation, there is not much to stop them from setting up as that broker, and sending out fake rate confirmations to legit carriers.
A big part of catching this kind of fraud, is to really pay attention to who you are talking to, and pay attention to the contact information on record at the FMCSA. It is a nuisance, but it is very important. And the most important part of this process is the legitimate companies, need to review their information on file with the FMCSA, as well as the load boards and carrier setup platforms.
And when you are vetting a carrier or broker, you must pay close attention to the email address. If the person you are in contact with, is not using the email on file, or calling from the phone number on file, it behooves you to verify that the person you are in contact with is approved to business with that carrier or brokers authority.
And when you catch someone using fake credentials, don’t just block them from your system. Report them! Here is where you can start.
ab***@co************.com and re*************@go****.com
When you have an email that is a fraud, forward it to both emails, along with the reason you are sending.
Something like this will get the ball rolling.
This domain and/or email address is a fraud. This is an ongoing double brokering scam in the freight industry.
This sender’s email address was created to look like another email in order to steal the identity, ruin their reputation, and destroy their business.
It is urgent that this domain is taken down as soon as possible.
You may be asked to complete some additional steps, but it is very important if you want to fight this problem. And please, continue to share your stories about double brokering experiences, and sharing the MC numbers for the bad entities. And if you know of a carrier or broker that has been compromised, take the time to let those real companies know, because you may have caught the problem before they did.
And as always, Tim Bannon is here to help. Although his profile on Linkedin was removed, thanks to double brokers, he is on Linkedin with the Tim Bannon company page that you can follow. That address is www.linkedin.com/company/tim-bannon and if you follow that page, his trusty sidekick will reach out to you with more information.
And the website to connect with Tim is www.thebannonreport.com
Till next time!
