Freight Scams Are Rising — Here’s How RAPIDFIRE PAY LLC Can Shield You

In today’s freight landscape, booking a load isn’t just about miles and rate per mile anymore — it’s about risk. Carriers are increasingly exposed to hidden dangers that can derail cash flow and operations in a single bad transaction. From fraudulent ghost companies posing as brokers to double brokering schemes that leave you chasing payments, the threat of non-payment is more real than ever.

These aren’t isolated incidents. They're becoming part of the everyday reality in trucking — especially for small carriers who don’t have time or resources to vet every broker. And when a broker ghosts you after delivery? You’re left holding the bag — unless you have a safety net.

That’s where a non-recourse factoring partner like RAPIDFIRE PAY LLC becomes more than just a funding solution — it becomes your credit risk defense team. With a non-recourse agreement, RAPIDFIRE takes on the credit risk of approved brokers. If that broker is committing fraud, unable to make payments to a carrier or generally not a good credit investment, our team will keep you from that exposure. If they get past our searches and later are found to be illegitimate, the buck stops with us at RAPIDFIRE.

In this post, we’ll unpack the three biggest credit risks in truck brokering — ghost companies, double brokering, and non-payment — and show you how working with RAPIDFIRE PAY LLC's non-recourse factoring can protect your business from financial fallout.

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Fraudulent Ghost Companies

Ghost companies are fraudulent entities that pose as legitimate freight brokers or carriers. They often exploit online load boards and lax verification processes to secure shipments, only to disappear without fulfilling their obligations. These scams have become increasingly sophisticated, with perpetrators creating fake websites, using stolen motor carrier numbers, and employing counterfeit documents.

For instance, in 2023, a Tampa-based freight brokerage experienced a significant loss when fraudsters hijacked a load of yogurt and plant-based milk using a stolen motor carrier number and fake email, demanding a $40,000 ransom.

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Double Brokering

Double brokering occurs when a broker accepts a shipment and then illegally reassigns it to another broker or carrier without the shipper's knowledge. This practice is illegal and can lead to various issues, including:

• Non-payment: The actual carrier may not receive payment, leading to financial losses.

• Insurance complications: Shipments handled through double brokering may not be covered by insurance, especially if the actual carrier is unverified .

• Legal liabilities: In the event of accidents or cargo damage, determining responsibility becomes complex, potentially leading to legal disputes.

A survey conducted in Q2 2023 revealed that 85% of freight brokers and carriers were impacted by double brokering, with nearly 56% experiencing losses up to $50,000.

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Non-Payment Issues

Non-payment is a significant risk in truck brokering, often resulting from fraudulent activities like double brokering or dealings with ghost companies. Carriers may complete deliveries only to find that the broker has vanished, leaving them unpaid. This not only affects cash flow but can also lead to legal battles and reputational damage.

In some cases, carriers have reported losses exceeding $100,000 due to such fraudulent schemes.

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Mitigation Strategies

To protect against these risks, consider the following measures:

1. Thorough Verification: Utilize the FMCSA’s SAFER System to verify the legitimacy of brokers and carriers.

2. Monitor Red Flags: Be cautious of brokers who are unwilling to provide their motor carrier numbers, request unusual payment methods, or offer rates significantly higher than market value .

3. Establish Strong Relationships: Work with a trusted network of brokers and carriers to reduce the likelihood of falling victim to scams.

4. Use RAPIDFIRE PAY Factoring Services: Engage with our reputable freight factoring services that offer credit checks and ensure timely payments. With over 20 years in credit and risk analysis in transportation, not much gets past us!

   
   

By staying vigilant and implementing these strategies, you can significantly reduce the risks associated with truck brokering and safeguard your operations against fraudulent activities. Call 800-709-7393 or visit HERE to get started protecting your investments today!