Carrier Vetting: Red Flags Brokers Should Know

Vetting your carriers is an important part of being a freight broker. Unfortunately, advances in technological capabilities have made it easier for criminals to perpetrate fraud. Criminals use a variety of tools to trick brokers. This can include anything from AI to credential harvesting. 

Freight fraud can take on many forms, such as: 

• Double brokering
• Carrier identity theft & impersonation
• Payment scams
• Cargo theft
• Fake shell companies (“ghost” carriers)

Since freight brokers don’t meet most, if not all, the carriers they hire, it’s easy for criminals to pose as legitimate companies. Fortunately, there are some red flags that you can look for during the vetting process that will help you determine if the carrier is legitimate. 

Let’s take a closer look. 

Missing or Incorrect USDOT and MC Numbers

USDOT and MC numbers are essential for carriers to operate in the US. Carriers that don’t provide them are often an indicator of fraud. The same applies if they provide numbers that don’t match their company name or address. 

Suspicious Contact Information

Contact information from carriers that use generic email domains like Gmail, Yahoo, and others should be viewed with suspicion. Carrier emails should match the company’s domain. Phone numbers that go straight to voicemail are also a sign of fraudulent activity. 

No Proof of Insurance

Carriers are required by the FMCSA to have insurance. If they can’t provide proof of insurance, they’re either operating in violation of FMCSA requirements or they’re not a real carrier. 

Zero Work History

There’s nothing wrong with hiring a carrier that’s new to the industry. However, you should proceed with caution if a company has zero work history. Check the FMCSA database to confirm if the carrier is a newly issued authority. 

Rushed Verification Process

The verification process should take time. Rushing it can lead to mistakes that result in dire consequences for brokers and their customers. Many fraudsters will rush brokers through the verification process. They do this in an attempt to conceal information that would reveal their illegitimacy. 

Check Reviews

Reviews should always be approached with a healthy amount of skepticism. That said, a carrier with nothing but bad reviews from customers complaining about deceptive practices should be avoided. These businesses are untrustworthy and likely participate in freight fraud.