Fraudulent Activities in Transportation Industry Surge
June 15, 2023
Transportation industry witnesses a surge in fraudulent activities, prompting the creation of the TIA Fraud Task Force to address the challenges and develop strategies to combat fraud in freight transactions.
Rising Fraud in the Transportation Industry
Fraudulent activities in the transportation industry have sharply increased since 2021, creating significant challenges for brokers, carriers, and shippers. With most freight transactions occurring online via public load boards, the industry is highly vulnerable to various forms of fraud.
Forms of Fraud: Double Brokering and Load Board Phishing
The competitive nature of the industry means brokers lack time to verify carrier legitimacy. This environment has led to two common types of fraud: double brokering and load board phishing.
Double brokering happens when carriers accept a load and then broker it without authorization. This deceptive tactic allows fraudsters to profit, costing brokers and shippers millions. Annually, double brokering results in approximately $700 million in losses.
Load board phishing is another prevalent fraud. Fraudsters impersonate legitimate carriers using stolen credentials and email addresses. This tactic enables them to siphon money or steal loads, affecting everyone in the supply chain.
TIA Task Force Steps In to Combat Fraud
Recognizing the growing issue, the Transportation Intermediaries Association (TIA) announced the creation of the TIA Fraud Task Force on June 9. The task force aims to develop strategies and address complaints related to transportation fraud.
TIA Task Force: A Collaborative Effort
The TIA Fraud Task Force will include leaders from the third-party logistics (3PL) and technology industries. By pooling their expertise, the task force aims to tackle fraud in the transportation sector. Through innovation and cooperation, the TIA Task Force strives to create a safer environment for freight transactions.
A New Era of Freight Transaction Security
The formation of the TIA Fraud Task Force marks a crucial step in combating fraud within the transportation industry. With the industry’s rapid growth and increasing fraud risks, this initiative is essential in safeguarding the future of freight transactions.