Apex Capital, a full-service factor specializing in the trucking industry, recently announced that it now provides early warning to its carrier clients of possible instances of fraudulent double brokering of freight.
As part of its information technology system, Apex has created an alert mechanism designed to use the most predictive factors to identify when possibilities of fraud exist. Once the system finds a fraudulent profile, credit and collections specialists at Apex address the situation, including notification of Apex clients who have made or who will make credit inquiries concerning the suspect broker.
In many cases, double brokering of loads results in no harm to involved carriers, other than reduced profit margins and slower payment of transportation charges. Double brokering becomes a real problem, however, when fraud is the intent from the beginning.
Fraudulent double brokering typically involves an imposter motor carrier who takes a load from a legitimate broker and then re-posts the load on an Internet load board at an inflated rate to lure in an unsuspecting legitimate motor carrier to transport the freight. The imposter has no intention of ever paying the legitimate motor carrier. Once they receive an invoice and evidence of completed shipment from the true motor carrier, the imposter submits its own invoice to the first broker, collects payment and disappears.
“Be sure you are dealing with a reputable broker who has been in business for a while,” says David Baker, president of Fort Worth, Texas-based Apex Capital. “Always be on the lookout for rates that seem too good to be true.”