Fraud is a big problem facing the spot market. Verifying that a broker is factorable with TruckSmarter is a good first step to avoid working with bad actors. However, this does not safeguard against fraud where skilled scammers impersonate legitimate brokerages. In this article, we will share steps you can take to protect yourself from booking a fraudulent load and discuss what you can do if you fall victim to a scam.

Reviewing rate confirmations for red flags

Amazon Relay fraud

Steps to take if you are a victim of fraud

Reviewing rate confirmations for red flags

When you intend to book a load with a new broker, it's important to review their rate confirmation closely — verify the following before proceeding with the load: 

1. The specific broker is factorable with TruckSmarter 
2. The rate confirmation is from the legitimate broker and not an impersonator

To see if a broker is factorable with TruckSmarter, navigate to the Factoring tab and select the Search brokers button. Since brokers often have similar names, we recommend searching by the broker's MC Number to easily determine if they are factorable with TruckSmarter.

If the broker does not appear in the search results, you can request a new broker by tapping the Request broker check button and entering their information. After submitting your request, simply close and reopen the TruckSmarter app to update your broker list. Search for the broker's MC Number once more to see if they were approved.

Once you've verified the broker is factorable with TruckSmarter, follow these steps to ensure the rate confirmation is not created by a fake broker:

• Rate confirmations should contain contact information and instructions on how to bill the broker — specifically, please ensure that the broker's contact information such as physical address, phone number, and email address match what is displayed on the broker's official website
• Contact their phone number in FMCSA database to verify the load
• Investigate rate confirmations that have limited information about the broker or shipment
• Exercise caution with rate confirmations sent from unofficial email domains such as Gmail or Yahoo — while some small brokers may use these informal addresses, they can be a red flag for potential fraud
• Be wary if a broker says to check in as a different carrier or if the bill of lading given to you at the shipper lists a different carrier

Amazon Relay fraud

Proficient fraudsters have tricked carriers into moving Amazon Relay loads for free by impersonating legitimate brokers with compromised DAT credentials, usually obtained through malicious actions. It is important to know that Amazon does not broker power-only moves between their warehouses — if you see a broker offering a power-only load, look at their contact information closely on the rate confirmation and verify that it matches the broker's official contact information. If you suspect the load is fraudulent, contact the real broker and notify them of the imposter.

What to look for:

• Amazon facility to Amazon facility trailer move
• Posted by legitimate broker’s load board account, but instructs you to contact them via an alternate email address
• Email address may be similar to legitimate brokers, but are fake — for example, they may use an incorrect email domain like john@pnglogisticsco.com, but the real broker's email domain is john@pnglc.com (see an example screenshot below)

If you are a victim of Amazon Relay fraud:

• Email sclpe-carriernotifications@amazon.com if you are the victim of Amazon Relay fraud
• Include the information sent to you from the fraudulent broker and all documentation or pictures that prove that you completed the power-only load
• Submit a support ticket through the Amazon Relay mobile app

Example (1) Scammer Impersonating Landstar

Example (2) Scammer Impersonating PNG Logistics

Steps to take if you are the victim of fraud

TruckSmarter is not responsible for factoring fraudulent invoices that are not from the real broker we have marked as factorable in our system. If you are the victim of fraud, you will need to take your own steps to receive payment for a load.

1. Use information from the bill of lading to contact both the shipper and receiver to determine who paid to move the freight.
2. Provide them with the load information and ask to verify which broker or carrier was responsible for moving that load.
3. If it was given to another carrier directly, instruct the shipper or receiver to not pay that carrier and pay you instead. 
4. If the load was given to a brokerage, contact them immediately. Provide them the load information from the bill of lading, along with the fraudulent rate confirmation sent to you. Instruct them to not pay the carrier that double brokered the shipment to you. Ask them to pay what they agreed to give the fraudulent carrier that double brokered the load to you. Do not expect them to honor the rate the fraudulent broker offered you, as this is often unrealistically high since they were not intending to pay you. Understand that the broker may be sensitive in this situation. Remind them that you are both the victims or this scammer and that you want to work out a solution with them. 
5. If the real broker refuses to pay you, calmly advise them you can pursue payment from their customer directly. Remind them that you do not wish to do further damage to their relationship with the customer, but you completed the work and have a right to be paid by their customer if they aren’t willing to work out a solution. The bill of lading you were given at pick-up represents an enforceable contract between you and the shipper and you are obligated to be paid for moving their freight. The broker is not obligated to pay you, but their customer could be if you hauled their freight and have a legitimate, signed bill of lading. Sensible brokers should be inclined to work something out with you to avoid further damage to their relationship with the shipper if you pursue payment from them directly.