The Escalating Challenge of Cargo Fraud
Cargo fraud has become a critical concern in the logistics industry, with incidents involving identity theft, ghost carriers, and load board scams leading to significant financial losses and supply chain disruptions. Implementing robust security measures is essential to protect assets and maintain operational integrity.
The Surge in Cargo Fraud: Analyzing the Numbers
In 2024, cargo theft incidents reached unprecedented levels across North America. According to Verisk CargoNet, there were 3,625 reported incidents, marking a 27% increase from the previous year. The average value per theft also rose by 7.7% to $202,364. Notably, California and Texas accounted for over half of all cargo thefts, highlighting the geographic concentration of these crimes (Transport Topics).
Load Board Scams: A Breeding Ground for Fraudulent Activities
Public load boards have become fertile ground for scammers employing various tactics to exploit vulnerabilities:
- Impersonation of Legitimate Carriers: Fraudsters steal or fabricate carrier identities to book loads, subsequently requesting fuel advances or holding cargo hostage for ransom.
- Double Brokering: Scammers accept a load and then reassign it to another carrier without the shipper’s knowledge, leading to lost revenue and compromised cargo.
- Fake Towing and Repair Scams: Criminals pose as towing companies or repair shops, demanding payment for services never rendered.
Common Red Flags: Identifying Potential Scams
To mitigate the risk of falling victim to these schemes, shippers and brokers should be vigilant for the following warning signs:
- Suspiciously Low Rates: Offers significantly below market rates may indicate fraudulent intent.
- Unwillingness to Provide Verifiable Information: Legitimate carriers are transparent about their credentials, insurance, and operational history. Hesitation or refusal to provide such information is a red flag.
- Recently Registered Carriers with No Track Record: Newly established carriers lacking a performance history may pose a higher risk.
- Pressure Tactics and Urgency: Scammers often create a sense of urgency to expedite decisions without proper due diligence.
At PLS Logistics, we understand that shippers often hesitate to engage brokers due to concerns about load postings on public platforms like DAT or Truckstop. Such postings can signal a lack of control and the use of random carriers, potentially undermining relationships with existing carrier partners. To address these concerns and ensure the utmost security and reliability, PLS has implemented several key strategies:
- Dedicated Carrier Partnerships- We prioritize building long-term relationships with carriers we know and trust. This approach ensures that your freight is handled by reliable partners, minimizing risks associated with unfamiliar carriers.
- Selective Load Posting Practices- When it becomes necessary to post loads, we employ strategic methods to protect our customers’ interests. We minimize exposure and maintain confidentiality, ensuring that your load information remains secure.
- Comprehensive Carrier Vetting- Our carrier vetting process is thorough and stringent. We assess safety records, insurance coverage, operating authority, and compliance with Department of Transportation (DOT) regulations to ensure that every carrier meets our high standards.
- Advanced Transportation Management System (TMS)- PLS PRO, our proprietary TMS, offers seamless integration with your existing business systems. It enables efficient load management, real-time tracking, and prioritization of preferred carriers, enhancing visibility and control over your shipments
By focusing on these strategies, PLS Logistics ensures that your shipments are handled with the highest level of professionalism and security, addressing common concerns associated with brokerage services.
Cargo fraud isn’t just an operational headache—it’s a fundamental threat to supply chain integrity. As fraud tactics evolve, shippers must rethink their approach to security, moving beyond reactive measures to proactive, strategic safeguards. The industry can no longer rely on outdated practices or broad, impersonal load boards. Instead, trust, control, and visibility must be non-negotiable. At PLS Logistics, we don’t just mitigate risk—we set the standard for a more secure, resilient freight network. The future of logistics belongs to those who prioritize security, and we’re leading the way.
