Many shippers consider freight fraud to be a rare occurrence — but the reality is more significant and widespread than commonly recognized. The US logistics industry is experiencing a notable increase in unauthorized activities that impact financial stability and operational integrity across the supply chain.
The Growing Concern of Freight Fraud
The freight brokerage industry experiences over a billion dollars in annual losses due to fraud, with recent data showing a 26% increase in cargo theft incidents in 2024. Particularly notable is the 600% increase in cargo theft observed between November 2022 and March 2023, indicating a significant shift in activities targeting the logistics sector.
The financial impact is substantial. Average company losses reach $400,000 due to fraudulent activities, with individual fraud costs per load sometimes exceeding $40,000. According to industry research, 22% of companies report losses exceeding $22,000 in just a six-month period, while 10% invest over $200,000 in fraud prevention measures.
Common Fraud Methods Affecting the Industry
Freight fraud manifests in several sophisticated forms:
- Carrier identity verification challenges have become increasingly common, with unauthorized parties using borrowed credentials to access shipments.
- Double-brokering arrangements involve the unauthorized re-brokering of loads without shipper knowledge, creating payment questions and potential financial impacts.
“The industry is navigating complex fraud considerations,” notes Craig Fuller, CEO of FreightWaves. “The combination of technology considerations and the high volume of transactions creates multiple entry points for sophisticated operations.”
Taking a different perspective, Lisa Harrington from Supply Chain Brain offers: “While technology creates certain vulnerabilities, it also offers promising solutions. Advanced verification systems and real-time tracking are showing effectiveness against even sophisticated fraud attempts.”
Meanwhile, the Transportation Intermediaries Association provides context: “The 92% of motor carriers currently unrated presents opportunities for improvement in carrier selection. This regulatory situation encourages more thorough private-sector vetting processes.”
For companies seeking protection in this evolving landscape, working with experienced logistics partners has proven beneficial. PLS Logistics offers comprehensive verification through their network of 55,000+ vetted carriers, advanced tracking systems, and thorough security protocols. Their integrated approach to risk management has helped numerous businesses maintain secure, reliable freight operations in today’s complex environment.
For companies seeking protection in this evolving landscape, working with experienced logistics partners has proven beneficial. PLS Logistics offers comprehensive verification through their network of 55,000+ vetted carriers, advanced tracking systems, and thorough security protocols. Their integrated approach to risk management has helped numerous businesses maintain secure, reliable freight operations in today’s complex environment.
