One of the worst things that can happen to your trucking company is to get scammed. Whether it’s a vendor, customer, or strategic partner, scams can bite you and your business right where it hurts – in the pocket book.

What is Double Brokering?

Double brokering is exactly what the phrase implies – a load that has been brokered twice. One of the most common fraudulent activities being perpetrated on truckers today is Fuel Advance Fraud, which is a form of ‘double brokering.’ This is when a fraudulent broker passes themselves off as a legitimate carrier, accepting freight from an unsuspecting broker or agent.

In many cases, the fraudulent broker signs up for a load that another broker has posted on a load board. Then, they re-post that load at a higher amount and hire a carrier to take the load – and take a fuel advance from the original broker. The fraudulent broker never pays the carrier, and the legitimate carrier who signed up to take the load ends up getting ripped off, while the scammer takes off with the fuel advance.

So, how do you avoid being double-crossed by a double broker?

1. Perform due diligence on all brokers. Call to check the credit of brokers. Look for variations in broker name, location, contact information, and billing information. Often these fraudulent brokers alter the documents they receive from actual carriers to convince victims that they are a part of a legitimate company.
2. Verify a carrier’s information with their Department of Transportation registration. If the phone number and address don’t match the information you’re given, that’s a big red flag.
3. Double check the broker’s rate. Use common sense and apply the old adage, “if it sounds too good to be true, it probably is.” A scammer posing as a carrier may accept a load for much less than the going rate to entice a broker into taking the deal. Or, a scammer may offer a carrier more money than originally offered by a broker to take advantage of someone who needs a quick payday.
4. Be aware of timing. Deals posted late in the week or at the end of the day are frequently made by fraudulent brokers. Why? Because they’re preying on truckers’ worries over not being able to schedule a load by a certain time. And anytime a broker seems in a rush to get you to agree, you should also be wary.
5. Check their Authority to Operate. Search FMCSA’s Safer and Fitness Electronic Records system website, https://safer.fmcsa.dot.gov/ to make sure the DOT/MC authority to operate number matches with what the carrier has submitted.

Spending time to validate and research necessary information about a broker is important to ensure that you’re not being scammed. Avoid becoming a victim of swindlers who are just looking to make money off a quick con.