How to Protect Your Freight Brokerage from Double Brokering Scams
Double brokering is one of the most costly and frustrating scams in the freight industry. Every year, brokers lose millions of dollars to fraudulent carriers and deceptive practices that leave loads stranded, payments lost, and reputations damaged. With cybercriminals and unethical carriers getting more sophisticated, how can you protect your brokerage?
In this article, we’ll break down what double brokering is, why it’s a serious threat, and the red flags to watch for—but the best way to safeguard your business is with a proactive fraud prevention strategy.
What is Double Brokering and what to look for to spot one?
The typical definition of Double brokering is when a carrier accepts a load from a broker but then illegally re-brokers it to another carrier—often without the original broker’s knowledge. This creates a web of liability issues and leaves the freight vulnerable to being held hostage, stolen, or delivered late with no accountability.
Why Is This a Big Deal?
❌ Loss of Payment – You pay the fraudulent carrier, but they disappear without paying the real carrier.
❌ Cargo Theft Risk – Unverified carriers increase the risk of stolen goods.
❌ Legal Liability – If a load is damaged or missing, who is responsible?
❌ Reputation Damage – Shippers lose trust in brokers who fall victim to these scams.
Some of the Red Flags That a Load May Be Double-Brokered
While fraudsters are getting more creative, here are some clear warning signs:
🚩 Carrier’s MC Number is Too New – If the carrier was just registered, they might be a front for fraud.
🚩 Carrier Won’t Provide Driver Information – If they hesitate to share truck and driver details, they may be hiding something.
🚩 Email Domain Mismatch – Beware of carriers using generic emails (e.g., Gmail, Yahoo) instead of a company domain.
🚩 MC Number Doesn’t Match FMCSA Records – Always verify carrier credentials in the FMCSA SAFER system.
🚩 Carrier Pushes for Quick Payment – Fraudulent carriers often demand payment before delivery.
How Freight Brokers Can Protect Themselves
While many brokers believe they have strong vetting processes, fraudsters are constantly evolving their tactics. Here are key ways to strengthen your defenses:
✅ Implement a Carrier Vetting System – Use automated tools to cross-check carrier credentials, insurance, and historical data.
✅ Train Your Team on Fraud Prevention – Employees should recognize the signs of double brokering and know how to react.
✅ Conduct Surprise Audits – Randomly check completed loads to verify that the assigned carrier actually delivered them.
✅ Use Stronger Contracts – Tighten carrier agreements with specific clauses prohibiting re-brokering.
📌 Want to see if your brokerage’s security measures are strong enough? Our Fraud Prevention Training teaches teams how to detect and stop scams before they happen. Schedule a Consultation today.
Don’t Wait Until It’s Too Late
Double brokering scams are becoming more sophisticated—and even experienced brokers can fall victim. The best way to protect your business is to take proactive security measures before fraudsters strike.
🔹 Want to test your security procedures?
🔹 Concerned about a suspicious carrier?
🔹 Need a team training on fraud prevention?
📞 Contact us today for a Custom Fraud Risk Audit and Employee Training Program.
