As the owner of a trucking company, you’re managing a large pool of drivers, customers, and loads. You already have a lot to handle, so the last thing you want to deal with are scam artists wanting to take advantage of your busy schedule. As with every other industry, no one is immune from becoming a target of a scam, no matter the size or value. Staying informed will keep you one step ahead of fraudulent practices and keep your company and employees safe. If you’re looking for more information here are five common trucking fraud scams to be aware of and how you can avoid becoming the victim of one.

Common Trucking Fraud Scams

Driver in Need: If you’re a company with an exceptionally large number of drivers, you may be a target of this type of scam. The fraudster will collect information from another driver by conversing with them or overhearing it from a truck stop and will use it to call dispatch to request a cash advance.

Phony Repair Shop or Fake Towing: Trucks commonly need to be repaired or even towed during service. The trucking company covers the expenses for repairs, and occasionally a scammer can exploit this by making false calls to a company asking for payment. The scammer provides vehicle information and a driver’s name and sometimes a fake invoice. The goal is to make the trucking company believe the load will be withheld from the driver until payment is received to get the company to pay up.

Fake Police Officer or Department of Transportation (DOT) Inspector: This act of trucking fraud involves a scammer posing as a fake government official. They will contact a trucking company to demand payment over a fake violation to get the truck back. You should also look out for notices in the mail asking for payment for renewal fees and threatening fines for missing the payment.

False Freight: This scheme happens when the driver is not allowed to supervise loading. Often the doors are sealed shut, preventing the driver from being able to ensure inventory counts, but is often still required to sign off on it anyway. Only when the delivery is complete do you realize the piece count is off and the scammers likely stole some of the freight.

Load or Fuel Advance Scams: A popular scam in the industry that targets brokers. Scammers steal the identity of a legitimate trucking company and book loads without any attention of picking them up. Instead, they request a cash advance for fuel and travel expenses. Once received, one of two things could happen. The scammer either disappears or more aggressively, holds the load hostage to demand further payment. Either way, the broker is left with money out of pocket and still in need of finding an actual driver to haul the load, if you’re lucky enough to still have it.

Double Brokering: Although this act entirely involves legitimate parties, you want to make sure you do not become a victim of this, and it’s another one that focuses on brokers. This time it occurs when a broker books a load for a carrier, but in turn that carrier brokers the load to a third party without the consent of the original broker or customer. In this case, the actual carrier of the freight is not under the original contract and therefore is uninsured. If the company that booked the third party does not pay the carrier who moved the load, then the original broker could possibly be on the hook for both payments.

How to Avoid Trucking Fraud

As it happens, you already took the first step of avoiding trucking fraud by reading about common scams. Knowing how to identify scams as they occur will stop you from making a mistake.

Here are a few pieces of advice to follow as well:

• Train drivers to not divulge important information in public and to always be aware of their surroundings.
• Request an invoice, and if actually provided one, review it carefully. If no valid address or phone number can be found,
• Find ways to validate the carrier or service provider. Always speak with the driver directly to confirm they are who they say they are. Try asking for information not readily visible on the truck such as the DOT number or employee ID number.
• Directly transfer funds to the driver, not a provider. Don’t risk sending payment to an unknown third party. Also, it’s best practice not to issue fuel advances to a new carrier you haven’t worked with before. Wait until they establish trust by successfully delivering a couple of loads before granting permission to receive cash advances.
• Always be suspicious if someone is pressuring you for immediate payment. Ask yourself if the situation urgently requires you to do so. If absolutely necessary, then just issue a smaller percentage of the cash advance instead of the full amount.

Advanced Commercial Capital: An Industry Resource

Advanced Commercial Capital is here to help the freight industry continue to grow with confidence. We’re in the business of helping your business grow through fair and honest invoice factoring. We protect our clients from unpaid freight invoices due to fraud, bankruptcy, or delinquency, without any surprises. To learn more or go get in touch with our team, call our office at 855.465.4655 or fill out our online contact form today.