Shipping scam is not a new challenge, and it’s become more sophisticated, more organized, and far more costly. It affects all parties in the logistics ecosystem, from shippers, carriers, and brokers to consignees.
Freight fraud is now considered a national-level threat, eroding profit margins, disrupting supply chains, and damaging trust throughout the industry.
Let’s break down how the latest trend of freight fraud threats and proactive defenses logistics professionals must adopt to stay ahead of bad actors.
What Is Freight Fraud?
Freight fraud refers to any deceptive activity committed during the transportation of goods, typically for financial gain. This includes phishing scams, identity theft, fake carriers, rerouted shipments, and fraudulent pickups. It’s a multifaceted threat that exploits both digital vulnerabilities and operational loopholes.
The Transportation Intermediaries Association’s report on the state of fraud in the U.S. transportation and logistics industry
The Prime Target of Truckload Freight
A staggering 98% of logistics professionals agree that truckload freight is the most vulnerable segment to fraud. In 2024 alone, freight fraud rose by 27%, and early Q1 2025 data confirms the crisis is only deepening.
Scammers are no longer just opportunistic individuals. They’re often part of international, organized groups who exploit industry gaps, often with devastating consequences.
Freight Fraud in Q1 2025
In the first quarter of 2025, significant threats were detected and stopped across the logistics space:
- Spoofed emails impersonate trusted brokers and carriers
- Fraudulent and spoofed phone calls
- Unauthorized login attempts from outside North America (notably India, Moldova, and Pakistan)
- Identity-related fraud alerts
- FMCSA contact details being changed without consent
Despite these measures, cargo theft is still costing U.S. companies up to $35 billion a year, as reported by TIA’s State of Fraud in the Industry.
What to Watch in Q2–Q3 2025
Bad actors are adapting quickly, particularly around long weekends and off-hours when staff may be limited. Key risks to monitor include:
- More frequent spoofed communications by email and phone.
- Advanced social engineering attacks targeting dispatchers and brokers.
- Insurance scams via falsified Certificates of Insurance (COIs).
Common Forms of Freight Fraud
1. Phishing and Spoofed Emails
Emails that appear to come from trusted sources, such as load boards or factoring companies, lure victims into giving up credentials.
2. Identity Theft and Fake Profiles
Fraudsters pose as legitimate carriers, brokers, or shippers to steal freight or money.
3. Sold MCs and Ownership Changes
MC numbers are sold on marketplaces, allowing fraudsters to hijack good reputations for quick access to freight.
4. Fictitious Pickups
Imposters physically arrive for pickups using stolen or faked credentials by the time it’s discovered, the freight is gone.
5. Shipment Diversion
Shipments are intercepted in transit and rerouted to alternative locations via manipulated communications.
6. Load Pilferage
Theft of part of a load, often unnoticed until delivery, with forged documentation masking the loss.
7. Payment Fraud
Criminals access payment systems and reroute funds using fake invoices or redirected bank information.
8. Double Brokering
Fraudulent actors re-broker loads without the shipper’s knowledge, often failing to pay carriers or vanishing altogether.
Case Study: DAT Load Board Phishing
In a notable incident, cybercriminals mimicked DAT’s FreightGuard report emails and created a phishing site to steal login credentials. Once inside, they brokered loads under fake carrier names. The attack was effective because:
- It closely mirrored legitimate branding
- It relied on user trust in familiar platforms
- It exploited credential reuse and a lack of multifactor authentication
Always verify domains, enable MFA, and regularly audit load board access.
How to Report Freight Fraud
If you believe you’ve been targeted or affected by freight fraud, there are several steps you can take to report it:
- Contact the Department of Transportation’s Office of Inspector General (OIG):
Report the incident through the OIG hotline by calling (800) 424-9071 or emailing [email protected].
- Submit a Complaint to the FMCSA:
Use the FMCSA’s National Consumer Complaint Database to file an online report.
- Reach Out to Local Law Enforcement:
Depending on the situation, it’s also a good idea to report the fraud to your local police department or relevant law enforcement agency.
- Protect Your Identity:
If scammers are using your identity, notify any load boards, factoring companies, and your insurance provider where your information might be misused.
How to Prevent Freight Fraud
1. Vet your partners thoroughly
- Use FMCSA tools to validate MC/DOT numbers
- Request references and review insurance coverage
- Verify identity via outbound calls, not inbound requests
2. Strengthen cybersecurity
- Enable multi-factor authentication
- Train teams to recognize phishing attempts
- Use secure platforms for document sharing and communication
3. Monitor red flags
- Unusual contact changes on FMCSA
- Rate confirmations from unknown email domains
- Calls from unfamiliar numbers claiming urgency
4. Invest in fraud prevention tools
Modern logistics operations rely on layered defense systems to detect and stop fraud in real time.
Get a Real-Time Defense Against Freight Fraud
Hugo Hunter is a nationwide transportation services provider that puts care about your peace of mind first. Here’s how we safeguard your freight:
✔️ Get timely photo updates on your shipments at every stage of the delivery. No blind spots, no shortcuts
✔️ Monitor your freight in a few clicks with our tracking system
✔️ Be assured that your carrier actively monitors FMCSA data to catch any suspicious activity tied to our DOT
✔️ Know that there are no third parties to deliver your shipments, so you’re working with a trusted partner
✔️ Safeguard yourself from double-brokering attempts to fake rate cons, because our team is trained to spot any red flags
By combining these measures, we proactively prevent it. Our goal is to make every link in your supply chain as secure as possible, so you can focus on your core business instead of worrying about stolen or rerouted cargo.
Freight fraud isn’t going away, but with the right tools and vigilance, you can protect your business. Discover more at hugohunter.com.
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