Introduction
Double brokering and bogus-broker schemes have exploded into what industry insiders now regard as the top fraud threat in freight logistics.
- In 2024, freight fraud losses, including theft, double brokering, and impersonation scams, surpassed $455 million, with double brokering skyrocketing in certain regions by up to 400%.
- By Q2 2025, 619 carriers had been officially flagged for active double-brokering behavior, based on over 75,000 verified reviews from brokers and shippers.
- Cargo theft and fraudulent pickups continued to surge, with CargoNet logging a 46% year-over-year rise in Q1 2024. This was followed by a 27% increase in thefts across North America in 2024, with an average value of $202,364 per incident.
- In early Q1 2025, 98% of logistics professionals identified truckload freight as the most vulnerable sector, with freight fraud climbing another 27% over 2024 levels.
- On a broader scale, cargo theft continues to outpace all other freight threats, costing U.S. companies up to a staggering $35 billion annually, with unlawful brokerage fraud ranked as the number one vector.
The significant number of incidents and their annual growth require all stakeholders, from brokers and carriers to shippers, to prioritize strategic protection now.
What is double brokering, and why is it illegal?
Double brokering is a form of freight fraud in its purest form. And it’s quietly bleeding millions from the logistics industry every year.
Here’s the playbook: a carrier or broker accepts a load, confirms the rate, and agrees to move the shipment. But instead of moving it themselves or assigning it to a vetted partner, they re-post the load under the table, passing it to an unknown third party.
The problem? None of the original parties is informed. The shipper thinks the freight is with a trusted carrier. The broker believes the deal is closed. And the actual carrier who ends up moving the load? Often unpaid, misinformed, or operating under false documents.
This breakdown creates real-world damage:
- Cargo goes missing or is never delivered.
- Carriers walk away without payment, triggering legal battles.
- Insurance won’t cover the loss because the chain of custody is broken.
- Shippers lose visibility, and with it, control.
What makes it illegal is simple: under FMCSA rules, only properly licensed brokers can reassign freight, and even then, they must operate transparently. When a carrier pretends to be a broker or re-brokers a load without consent, that’s unauthorized activity. And when they vanish with the payout or fake the documents? That’s fraud, plain and simple.
Still think this is rare? Just ask any broker who’s had to explain to a shipper why their load was handed off to someone they’ve never heard of, or worse, why it never arrived.
The numbers behind the crisis
Double brokering is no longer a theoretical risk. It’s a numbers-backed crisis that’s hitting brokers, carriers, and shippers with real financial damage, and the last two years have made that painfully clear.
In 2024, freight fraud surpassed $455 million in recorded losses, with double brokering leading the list, according to Truckstop and Highway, which reported a 400% spike in activity across high-risk corridors such as California, Texas, and the Midwest.
The pattern didn’t slow in 2025. As of Q2, CarrierSource had flagged 619 carriers for verified double brokering based on over 75,000 documented complaints submitted by brokers and asset-based carriers nationwide.
Cargo theft also climbed in parallel. In 2024, CargoNet recorded 3,625 incidents, up 27% year-over-year, with each theft averaging $202,364 in losses. Many of these cases were linked to fake pickups and untraceable carriers, textbook double-brokering setups.
Internally, brokers are feeling the weight, too. A 2023 survey by TriumphPay and FreightWaves showed:
- 85% of brokers and carriers experienced at least one double-brokered load that year.
- 56% reported losses of up to $50K.
- 1% were hit with damages north of $500K.
And zooming out? Industry-wide estimates now peg U.S. annual losses between $500 million and $700 million, depending on how the fraud is tracked.
What these numbers really mean:
- The volume is real. This is scaling fast and hitting nearly every stakeholder in the supply chain.
- The cost is compounding. What used to be a $3,000 headache is now a $30K–$300K risk, often with no insurance payout.
- The damage is systemic. It's not just money lost, it's trust, carrier relationships, and operational stability that take the hit.
What makes double brokering so difficult to stop?
On paper, double brokering appears to be a solvable problem. In practice, it’s layered, fast-moving, and built to avoid detection. Even seasoned logistics teams are finding themselves a step behind.
1. The fraud looks legit
Fraudsters aren’t hacking, they’re impersonating. Many pose as legitimate carriers using cloned MC numbers, stolen insurance certificates, and professional-looking email domains. Some even spoof phone numbers or mimic customer service reps. If your team isn’t double-checking credentials against verified data sources, it’s easy to miss.
2. Platforms don’t talk to each other
Load boards, TMS systems, factoring services, and compliance databases all have pieces of the puzzle, but they don’t connect. A carrier flagged on one platform may appear clean on another. That disconnect creates blind spots, and fraudsters know how to exploit them.
3. Enforcement can’t keep up
Even though double brokering violates FMCSA rules, regulators have limited tools to act quickly. In most cases, the FMCSA has to refer major violations to the Department of Justice, which means months, sometimes years, before there’s a consequence. By then, the bad actor is long gone.
4. The scams move fast
Double brokering rings operate with startup-level speed. Many use shell companies or switch identities every few weeks. A single MC number may be used for a handful of loads before it disappears entirely. If your fraud detection relies on historical patterns or manual review, you’ll always be behind.
So, what’s the fix?
Traditional background checks and carrier onboarding aren’t enough. The freight fraud playbook has evolved, and the only way to stay ahead is with layered prevention strategies, including real-time verification, active monitoring, and internal alignment among operations, sales, and compliance teams.
Spotting the red flags
1. Details that don’t line up
When a carrier’s email domain doesn’t match the company name or a dispatcher calls from a Gmail account it’s worth slowing down. Legit carriers don’t hide behind generic contact info. Mismatched DOT records, strange MC numbers, or vague answers to basic questions (like, “Where’s your terminal?”) are early indicators that something’s off.
2. Suspicious rate behavior
Loads being re-posted at lower rates on public boards? That’s a classic double-brokering pattern. The same goes for carriers aggressively underbidding or offering a “too good to be true” price with a vague payment plan. Scammers often overpromise on speed and underdeliver on everything else.
3. Generic paperwork or too much of it
If the carrier sends over an oddly polished carrier packet with incomplete insurance info, outdated references, or no clear business address, it’s worth digging. Look closely at the BOL. If the hauling carrier listed there isn’t the one you contracted with, you may be looking at a fraudulent handoff.
4. Overeager onboarding
Be cautious with carriers who rush you through setup, push to skip standard checks, or follow up aggressively about getting the rate confirmed fast. Scammers want to close the deal before you start asking the right questions.
5. No track record
New MC, no inspections, one truck, no Google presence, that doesn’t mean fraud, but it definitely means high risk. Cross-check with FMCSA, Carrier411, and other vetting tools. If you can’t find any data, that’s your data point.
Questions That Shut It Down Fast
- Who’s your point of contact at the shipper?
- Can you confirm your insurance agent and send proof?
- What’s your dispatch number, and is it listed on SAFER?
- Why is this load posted again under a different MC?
If those answers don’t add up or come back defensive, it’s time to pull the plug.
The stakes are not only financial
Double brokering is a control issue, not only about money. Every time a load gets re-brokered behind your back, you lose visibility, accountability, and leverage. It’s not only about a missing payment or a late shipment. It’s cargo handed to the wrong hands. It’s insurance that won’t pay out. It’s a customer asking, “What happened?” and your team scrambling for answers. And when it happens once, it sticks. Shippers remember. Carriers talk. Trust fades. Enforcement tools from regulators are still lagging behind the pace of these schemes, and legal consequences, while serious, are rarely swift. That means the companies who stay ahead aren’t waiting on policy, they’re building internal protocols to catch red flags early, pressure-test new partners, and close every visibility gap before a bad actor walks through the door.