Combating Cargo Theft And Freight Brokering Fraud
Cargo Theft and Double Brokering are significant challenges within the logistics and transportation industry. Cargo theft involves the unlawful taking of goods in transit, leading to substantial financial losses and disruption of supply chains. This can occur through various methods, including hijacking, pilfering, or deceptive pickups.
Double brokering fraud, on the other hand, involves deceitful practices by intermediaries who pose as legitimate brokers. These fraudsters may secure freight contracts, receive payment, and then disappear without delivering the goods. This type of fraud not only results in financial loss but also damages the reputations of the companies involved and erodes trust within the industry.
Both cargo theft and freight brokering fraud require vigilant measures such as robust verification processes, real-time tracking, and thorough background checks to mitigate risks and protect the integrity of the supply chain.
Cargo Guardian By T-TMS,Inc.
Our Features
Understanding the Impact of Cargo Theft and Double Brokering
Cargo theft and its effects on the freight brokering industry
- Double brokering and its impact on carriers and brokers
- Financial and liability risks for all parties involved
- Estimated annual losses in freight amounting to $500 million to $700 million
Enhancing Security in Freight Brokering
Proactive profiling minimizes risk by identifying suspicious brokers before they can cause harm (Pre-emptive protection, red flag detection).
Marketplace monitoring provides real-time threat detection and prevention to ensure brokers only work with legitimate partners (Continuous vigilance, fraud prevention ecosystem).
Active pick-up verification guarantees authentic shipments and reduces cargo theft risks (On-the-ground validation, enhanced security measures).
Cost of Transportation Fraud and Cargo Theft
The average fraudulent double broker claim amount is $1900.
- The average cargo theft cost ranged from $35,000 on the low end, and over $214,000 on the high end.
- Lasting cost of customer relationships and business reputation.
