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Three Ways to Recognize Double Brokering

Double Down
on Fraud

Hire carriers confidently with RMIS and Carrier Assure


Contributed by Carrier Assure  Contributed by Carrier Assure

The looming danger of double-brokering is on the rise, and it carries the potential for financial losses and legal troubles that could devastate your business. This, along with other fraud risks in the freight market, can quickly jeopardize your business and your reputation if you’re not careful.

Double-brokering can be prevented, but it requires careful attention to detail when verifying contact information, credentials, and documentation. Rushing the process is always a bad idea, but sometimes it can’t be avoided. However, there are indicators that should alert you to dig deeper.

What is Double-Brokering?

The most common type of double-brokering happens when a broker or shipper hires a full truckload carrier and vets their MC number, but the load is hauled by a different MC number without the knowledge or consent of the original contact. This practice is both unethical and illegal. It also puts all parties at risk should something happen to the cargo along the way

Three Warning Signs of Double-Brokering

Here are three warning signs of double-brokering.

  1. A carrier with less than three months of authority and zero inspections
  2. Names or phone numbers are not provided for the carrier.
  3. A carrier with just a single truck, and the VIN doesn’t match the one you have on record.

Ways to Avoid Double-Brokering

Avoiding double-brokering can be done, but it involves a proactive approach to spot suspicious behavior before it becomes a problem.

Here are ways to effectively avoid double-brokering and prevent it from happening to someone else.

  • Have the customer confirm the MC and DOT numbers for every carrier and confirm with the broker or shipper.
  • Verify contact information and communicate with your partners.
  • Call phone numbers to confirm it is the fight carrier. Virtual numbers without a physical address can also be a red flag for fraud.
  • Implement a strict carrier vetting process that’s reliable and accurate using tools like RMIS.
  • Check carrier scores confidently with software tools like Carrier Assure. If the carrier has a low score (D or F), take additional vetting measures.
  • Report carriers who double-broker right away to law enforcement and the FMCSA.

Being on the lookout for and reporting double-brokering is important to maintain trust and security in the freight market. Double-brokering can lead to financial losses, higher rates, and a lack of control over shipments. By reporting it, you help increase transparency and accountability for all parties.

Carrier Assure is the industry’s first performance scoring software that anticipates how the carrier will transport the goods. Powerful algorithms and data science provide brokers and shippers an indication of how the carrier will perform so that the carrier can be assigned the right shipment for the carrier’s performance level at the right price.

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