Skip to main content

Don’t Become the Next Victim of Double Brokering 

What is freight broker fraud? 

According to a study by the American Trucking Association, approximately 72.2% of freight by weight in the U.S. is moved by trucks. That can only happen when carriers and freight brokers have a way to connect. To help make these connections, trucking companies and brokers often use load boards, sometimes called freight boards, to post and find jobs.  

It sounds like a win-win. Unfortunately, double brokering has become a common occurrence. Here’s an example of how it can happen: 

  • A legitimate broker posts a job on a load board. 
  • A fraudulent party agrees to make the haul, but instead books it to another carrier without authorization. 
  • The legitimate carrier transports the freight. 
  • The fraudulent party gets paid and disappears. 
  • Fraud is detected, but often too late. 
  • The broker either pays twice or the carrier doesn’t receive payment. 

With more than 16,000 freight brokerage firms and 400,000 registered motor carriers in the U.S., it’s highly likely that the companies using load boards have never done business together. Therefore, it may be difficult to determine who is legitimate. 

The impact of double brokering freight

The aftermath of double brokering on the trucking industry is significant. Research by TriumphPay estimates that $500-700M worth of freight is affected annually.  

The broker is at risk of paying twice if the legitimate carrier demands payment, hires an attorney or goes through a collection agency. On the other hand, small freight companies may be in jeopardy because they may not be able to handle lost revenue. In both instances, time is wasted as each party deals with the fraud.     

How to avoid double brokered loads

Freight brokers and carriers can take steps to avoid these costly scams. Even in a fast-paced environment where the clock is always ticking, it’s worth taking time to do some research.  

Start by checking the FMCSA licensing status of the companies you work with. Through the FMCSA search, you’ll also find complaints, safety information, company headquarters, contact information, type of authority and more.  

You can also take the following steps to avoid double brokering:  

  • Check credit scores using a reputable load board, online credit check tool or through the FMSCA.   
  • Verify the company’s phone number. If the number listed on the FMSCA website doesn’t match the caller ID, hang up and call the listed number.  
  • Check the details. Review license, insurance registration and surety bond information.  
  • Be alert to high rates, which may be too good to be true.   
  • Build relationships and do more business with those you trust.  
  • Ask to speak with the driver. If they refuse, it’s a red flag.   

Ready to join the Osborn team? We’re looking for conscientious drivers! Call 920-690-9895 to speak with our driver employment specialists or apply online today.