The rampant double brokering fraud currently plaguing our industry has also contributed to a heavy uptick of company identity theft of both motor carriers and freight brokers. The bad actors double brokering with intentions of fraud are figuring out that brand new MC numbers are being rejected or heavily vetted prior to onboarding. So, along with establishing a steady flow of new MC numbers and buying older MC numbers, they’ve begun employing identify theft tactics.
These thieves and fraudsters are opening accounts on load boards by posing as owners, agents, or employees of legitimate motor carrier and freight broker companies. They’re also hacking existing load board accounts. They’re creating email addresses and buying site domains that closely match the email addresses and site domains used by legitimate motor carriers and freight broker companies. They’re obtaining copies of carrier packets and rate confirmations used by legitimate carriers and brokers. And then, they’re altering those copies to show their contact information.
These thieves and fraudsters are booking loads while posing as legitimate carriers. Unsuspecting freight brokers are qualifying the legitimate carrier’s MC number believing they’re offering that load to the legitimate carrier. Then, the thieves and fraudsters post loads while posing as legitimate freight brokers, and then double broker those loads out to unsuspecting legitimate carriers. Those unsuspecting legitimate carriers who actually haul the double brokered loads will most likely not be paid, unless the identity theft and fraud is caught prior to the double brokering identity thief being paid.
If your company’s identity and MC number is stolen and used in double broker scams, it can greatly impact your company’s reputation and transportation credit rating.
Notify the Load Boards
- Send DAT all documentation to carrierwatch@dat.com
- Send Truckstop.com all documentation to security@truckstop.com
- DAT and Truckstop.com are the major load boards used in our industry. However, there are others:
Documentation includes any proof you have of identity theft being conducted on their load board and proof of your ownership of the MC #. The FMCSA reported contact person should be linked back to you, your phone number, and your email address. Your company’s Articles of Incorporation or Operating Agreement should link back to the Secretary of State’s records in your state and should clearly show you as an owner or manager of the company.
Notify the FMCSA
Email the FMCSA: if you’re a motor carrier or freight broker wishing to report violations or fraudulent activity, please file a report online at https://nccdb.fmcsa.dot.gov/nccdb/home.aspx and visit https://www.fmcsa.dot.gov/mission/help/broker-and-carrier-fraud-and-identity-theft
If you’re law enforcement and need immediate assistance, please contact Tom Frazier - tom.frazier@dot.gov, or Manny Marquez - manny.marquez@dot.gov.
Notify Transportation Collections Companies
Contact Baxter Bailey, Tucker Albin, and any other collections companies who specialize in the transportation industry. Report to those collections companies that identity theft of your brokerage MC has occurred. Provide a summary of the details you know regarding when and where the identity theft happened. This gives them a heads up and can potentially head off negative reports against your credit.
Appropriate Freight Broker Training Can Help
Fraud and theft in our industry is currently high. Unfortunately, most of this fraud is occurring overseas. So, catching the bad actors and punishing them is difficult. Freight brokers have to vigilantly protect their own business, as well as their customer’s freight. Inexperienced freight brokers and freight agents are at a great disadvantage when it comes to spotting fraud within the transportation industry. Even those freight brokers who have extensive experience are having to stay on top of the latest issues and tactics regarding fraud. Taking advantage of appropriate freight broker training can help you learn to avoid these painful situations.
