IT provider Cloudflare recently released a survey on cybersecurity and fraud in the supply chain and logistics sectors, revealing a rapidly growing threat landscape.
As companies in the industry become more reliant on digital infrastructures, the interconnected systems of global supply chains have become prime targets for increasingly sophisticated cyberattacks.
“With freight being a critical component of the global supply chain, it’s no surprise that scams on these organizations have been...
Freight fraud has become an all-too-familiar term in the transportation and logistics sectors in recent years. Although fraud has long been a challenge in the field, industry experts observe that these criminals have evolved alongside FreightTech, leaving supply chain participants uncertain about who will bear the burden of finding solutions.
Recently, FreightWaves has received numerous reports of sophisticated freight fraud schemes.
There is the classic double-brokering scheme, in which a...
https://www.freightwaves.com/news/how-freight-fraud-became-the-perfect-crime
WASHINGTON — Federal regulators have told Congress that the administration is struggling to get a handle on broker fraud due to a lack of data as well as jurisdictional issues.
In a “Unlawful Brokerage Activities” report sent to Congress last week, the Federal Motor Carrier Safety Administration confirmed that it continues to assess the relationship between motor carrier safety and unlawful brokerage incidents.
However, “While the agency has received multiple expressions of concern from...
https://www.freightwaves.com/news/fmcsa-says-it-has-too-little-data-to-assess-double-brokering-fraud
Scammers impersonating and taking the identities of legitimate carriers and brokers to steal loads for a quick payday is at an all-time high, according to Scott Cornell, transportation lead and crime and theft specialist at Travelers.
Cornell said Travelers is seeing a higher incidence of double brokering for strategic cargo theft. That involves criminals using stolen motor carrier identities or operating authorities or even a broker’s identity to obtain freight and misdirect it from the...
The freight transportation industry has been increasingly impacted by identity theft, according to Kendra Tucker, CEO of Truckstop.
Tucker was the guest on the latest episode of Fuller Speed Ahead, hosted by FreightWaves CEO and founder Craig Fuller. The show aired during FreightWaves’ Small Fleet & Owner-Operator Summit on Wednesday.
“Identity theft is something that we’ve seen really tick up in the past couple of months or so, where carriers who are not actively driving are selling their active...
https://www.freightwaves.com/news/truckstop-ceo-industry-uniting-in-fight-against-load-board-fraud
If freight brokers weren’t so preoccupied with celebrating competitor missteps, one of them might have beaten Robert Bosch to RevX — a spot load aggregation tool that also flags double brokering.
The cloud-based RevX is the second product from the German auto supplier’s global Logistics Operating System (L.OS), aimed at simplifying technology and operational processes in transportation and logistics. L.OS launched in December with a goal of generating more than $540 million in freight-related...
https://www.freightwaves.com/news/boschs-revx-rolls-up-available-spot-loads
The 21st century is nearly a quarter of the way through, and the U.S. trucking industry is still riddled with inefficiencies and beset by a lack of clear communication. It doesn’t have to be.
HaulerHub is looking to carve a new path with its platform. The company hopes to revolutionize the way shippers and haulers collaborate by zeroing in on transparency and streamlined operations where they’re needed most.
HaulerHub co-founder Sam Agyemang and Business Analyst Sagar Sudhir recently joined...
https://www.freightwaves.com/news/haulerhub-is-changing-trucking-heres-how
In Q2 2023, 85% of respondents to a survey — consisting notably of freight brokers and carriers — were impacted by double brokering.
That financial impact to their spend was steep, with nearly 56% of businesses experiencing a loss up to $50,000 and 18% seeing a drain of $50,000 to $150,000. An additional unlucky 10% experienced costs that ranged from $150,000 to $500,000, and 1% saw a loss greater than $500,000.
These results were among the most telling findings in FreightWaves and TriumphPay’s...
Digital freight network Convoy announced Thursday it has built a proprietary real-time transportation fraud detection system using machine learning and carrier behavioral data and cargo theft solutions providers to identify potential transportation deception and crime.
According to the company’s cargo theft prevention partner, CargoNet, cargo theft has increased over 57% year over year (y/y) in Q2 2023, trailer theft has increased 17% y/y in Q2 along with an increase in double brokering schemes....
https://www.freightwaves.com/news/convoy-releases-proprietary-fraud-detection-software
The Wall Street Journal ran an article on April 26 detailing the load board fraud crisis and the proliferation of double brokering.
As the Journal reported, leading load board provider Truckstop found reports of fraud jumped by 400% from the fourth quarter of 2021 to the fourth quarter of 2022, the highest level since the firm started tracking reports in 2004.
It is likely that this article didn’t shock anyone in the truckload brokerage industry because almost everyone who has worked in the...