Load boards made the freight world faster and more connected. But behind that speed hides one of the biggest problems in modern logistics — double brokering and fraud rings that cost brokers, carriers, and shippers millions each year.
Knowing how these scams happen — and how to protect your operation — can mean the difference between a clean claim and a complete loss.
1️⃣ What is Double Brokering?
Double brokering happens when a load tendered by a broker is re-brokered again — often without the shipper’s consent — to another carrier or broker.
In simple terms:
- You book a load with Carrier A.
- Carrier A quietly re-brokers that same load to Carrier B.
- Carrier B hauls it, but no one tells you.
When the freight arrives damaged, delayed, or disappears, nobody knows who’s actually responsible.
Result: no valid contract, no traceability, no insurance coverage.
2️⃣ How Load Board Scams Make It Worse
Public load boards are a double-edged sword. They connect thousands of carriers fast, but they also attract fraudsters who exploit speed and trust.
Common load board scam tactics:
- Identity theft: scammers clone a real carrier’s MC number and post fake trucks.
- Rate baiting: extremely low or high rates to trick brokers under time pressure.
- Email spoofing: almost identical addresses
- Fake paperwork: altered COIs and W-9s created within minutes.
- Double dispatch: the same load posted multiple times under different MCs to different carriers.
Once the cargo moves under a fake carrier, it’s nearly impossible to recover.
By the time the broker realizes what happened, the real carrier’s identity has been used, the phone numbers are dead, and the load — or payment — is gone.
3️⃣ Why It’s a Legal and Insurance Nightmare
- No privity of contract — The carrier that actually hauled the load has no contract with the broker or shipper, which makes claims unenforceable.
- Insurance exclusions — Most cargo and contingent policies exclude “unauthorized re-brokering.” If the load was re-brokered without consent, coverage is void.
- Claims denial chain reaction — The shipper’s claim bounces between the broker, fake carrier, and the real carrier whose identity was stolen.
- FMCSA violations — Brokers and carriers can face penalties if they knowingly or negligently allow double brokering.
4️⃣ How to Protect Your Brokerage and Clients
- A) Vet every carrier beyond the load board profile
- Check the FMCSA SAFER record directly, not just what the board shows.
- Confirm the phone number and email match the FMCSA record.
- Verify COI directly with the insurance agent, not the PDF you were sent.
- Look at operating authority age, inspections, and BASICs.
- Ask for the driver’s name, license plate, and truck number before dispatch.
- B) Use controlled networks
Use private or verified load boards such as Truckstop’s Carrier Assure, DAT One Verify, or MyCarrierPackets that vet carriers daily.
Avoid assigning loads through open emails or social media groups.
- C) Write stronger contracts
Add a clear “No Re-Brokering” clause:
Carrier shall not re-broker, re-assign, or subcontract any shipment without prior written consent. Any violation will void payment and hold carrier fully liable for all resulting loss.
Make carriers initial that clause so it’s not ignored.
- D) Train your dispatch and night teams
Many double-brokered loads happen after hours when staff are rushing.
Train everyone to:
- Slow down on too-good-to-be-true rates.
- Confirm pickup with the real carrier dispatcher, not just a Gmail address.
- Re-verify MC, insurance, and equipment before issuing the rate confirmation.
- E) Track every shipment in real time
- Use GPS, ELD integrations, or apps like TruckerTools, Project44, or MacroPoint.
- If the carrier refuses location sharing, stop the dispatch immediately.
- Record seal numbers and pickup photos for verification.
5️⃣ What Insurance Underwriters Look For
Insurance companies track your claim sources.
A broker tied to multiple double-brokered or “unknown carrier” losses becomes a high-risk account, driving rates up or causing declination.
To qualify for low premiums:
- Keep a carrier vetting log showing how you verified each MC.
- Store rate confirmations and COI verifications in your shipment files.
- Maintain zero tolerance for re-brokering.
- Use dedicated shipper’s interest cargo insurance on high-value or time-critical loads.
Clean operational control = clean loss history = lower freight insurance rates.
6️⃣ The Bottom Line
Load boards are useful, but they are not foolproof.
A single double-brokered load can wipe out your profit, your relationship with a shipper, and your insurance protection.
Smart brokers treat verification like money: every call you make before dispatch protects your margin later.
Keep your vetting strong, your contracts tight, and your eyes open — that’s how professional freight brokers stay profitable and qualify for the best cargo insurance rates.
Author: Iris Arden Freight Insurance Direct (Ramon Insurance)
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