Scams are rampant across all industries, and the logistics industry is no exception. BYX has dealt with fraud more than once, and freight fraud can be devastating for smaller organizations. Fraud is so common today that many corporations have entire departments dedicated to fraud detection. For those who lack the resources to follow suit, there are easier ways to spot a scam before you fall prey to it.
The Most Common Freight Fraud Situations
Identity theft is the oldest scam in the book. There are a few ways in which this occurs in the shipping industry. Some scammers pretend to be trucking companies and prey on shippers or brokers by picking up freight and fleeing. Others request fuel advances and vanish.
Another common method of identity theft happens entirely online. Scammers design fake websites that look similar to legitimate shipping sites. Shippers assume its the real one, provide their payment details, and lose thousands. Always doublecheck a website’s URL. If it’s not identical to a legitimate company’s name, consider it a red flag. If the URL ends with the name of a free hosting site, like .wix or .hubspot, run. If a company is legitimate, they can afford their own domain name. Read more