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February 19, 2025

How To Prevent Falling Victim To Double Brokering

Spam is becoming more common in today’s transportation industry. While there are several types of spam, double brokering has become increasingly popular, especially within the past year.

What Is Double Brokering?

Double brokering is when a fraudulent carrier or fraudulent broker accepts the load and then re-brokers the load to a legitimate carrier. When a fraudulent carrier is double brokering, they will pose as a 3PL or broker to a legitimate carrier. On the other hand, when a fraudulent broker is double brokering, they will pose as a carrier by utilizing a MC#.

What Are The Consequences/Risk Of Double Brokering?

Typically occurring without the knowledge of the shipper, legitimate broker, and legitimate carrier, double brokering poses significant risks and consequences for all parties involved.

  1. Loss of control of goods
    The shipper loses total control of their goods, which significantly increases the risk of cargo damage, loss, or delays.
  2. Financial issues
    Legitimate carriers hauling the loads will face delayed or even no payments
  3. Reputation Damage
    Fraudulent brokers and carriers face severe damage to their industry reputation, making it more difficult for them to secure future loads.

Overall, double brokering is illegal and will lead to costly fines, license revocation, and potential imprisonment for those engaged in fraudulent practices.

What Are The Signs Of Double Brokering?

While fraudulent brokers and carriers are getting smarter, there are still some common signs that can indicate that the load is being double brokered, like the following:

  1. Carrier’s name isn’t your company name or the name of the broker on the BOL
  2. Email address on the BOL is a personal address like @gmail.com, @yahoo.com, @outlook.com, etc.
  3. Rate seems too good to be true OR it is unusually high.
  4. Load is posted on another load board at a lower rate.
  5. Broker cannot be found on Safer, FMCSA, or even from a Google search.

How To Prevent Double Brokering?

  1. Fortunately, there are ways for you to prevent falling victim to double brokering. Before excepting a load, you should keep the following tips in mind:
  2. Always check the bill of lading
  3. Always verify the email address that they are utilizing to communicate with you
  4. Always check in with your company name
  5. Make sure you know the market
  6. Read through the rate confirmation so you know what you are agreeing to
  7. Pay close attention to fonts that do not match and edits on rate confirmation

Navigating Industry SPAM

We understand that fraudulent brokers and carriers are preying on legitimate owner-operators and fleet owners, like you, for financial gain. To help you identify double brokering, we’ve compiled a document that further breakdowns each prevention tip listed above.

DOWNLOAD NOW

FAQ

What Happens If You Fail a DOT Inspection?

If the vehicle or driver is deemed unsafe, they may be placed out of service, meaning the vehicle cannot operate until all violations are properly corrected.

Who decides which level of inspection to perform?

Both the Commercial Vehicle Safety Alliance (CVSA) and the Federal Motor Carrier Safety Administration have a part in DOT inspection levels. The CVSA develops the criteria and sets the procedures for every inspection level. The FMCSA establishes overall regulations and determines which vehicles must be inspected.

How often do DOT inspections happen?

DOT inspections can happen at any time. They most commonly happen during roadside stops and weigh stations. Carriers with higher risk, poor safety records, or hazardous material may be inspected more frequently.

What documents are required during an inspection?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

What are common DOT inspection violations?

According to the FMCSA, the 5 most cited roadside violations are:

  1. False Report of Driver’s Record of Duty Status: log falsification providing inaccurate or intentionally altered duty-status information.
  2. No Record of Duty Status (ELD Required): using a commercial vehicle without the required electronic logging device or valid time records.
  3. Inoperable Required Lamp: crucial lights (headlights, brake lights, turn signals, etc.) are not functioning properly.
  4. Operating a Commercial Motor Vehicle Without a Commercial Driver’s License (CDL)
  5. Operating a Commercial Motor Vehicle Without Proof of a Periodic Inspection: failure to meet FMCSA the maintenance standards of a required annual inspection.

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