Caught a double broker scammer

In the case of a broker not paying, the delivering carrier can go after the shipper/receiver/customer who owns the freight. However, if I broker a load to a fraudster for 5000, who double brokers my load to an unsuspecting carrier for $2000 more than i originally paid the scammer, i am in no way obligated to pay the scammer the 5000, nor am i obligated to pay the delivering carrier 7000. I would only be on the hook for the 5000 I originally intended to pay and that would only go to the delivering carrier once i have proof they delivered.

I had a Glendale load a trailer they werent allowed to load - had to move empty with a seal. Trailer showed up with tire marks from forklift and pallet fragments. Buyer of the trailer declined to pay so our customer declined to pay. We told the scam carrier we wernt paying them and they tried to contact the customer saying since it delivered, they deserved to be paid. Thankfully the customer was once a marine and told them to go fly a kite too.

 

Now what if you had made the mistake of giving the scammer the 5k? Are you still obligated to pay the carrier who delivered the load?

 

You're not. The customer still is. If they're a good customer you'll eat it and pay.

 

It seems to me that the customer should be least responsible. They gave the broker money and the broker hired a conman to carry the load, the conman then roped the gullible carrier into doing the work.
It seems to me that the order of culpability should be; SCAMARTIST > BROKER> CARRIER
The broker is upstream of the carrier in this , if he had not given the load to the scammer, the whole mess would never have happened.

 

Yes as a broker you would technically be on the hook to pay the delivering carrier as well. Which is why its so important to verify who you're doing business with. Another broker at my company ended up paying around 30k out of pocket to the delivering carriers, after paying 30k to the scammer. Not a good day for that guy.

 

Agreed, which is why things like 411 and Assure are so vital to our operations. Any good broker has the intelligence to read a freight guard, the carrier response to it, and make a sound judgement. If you have a FG for doouble brokering, auto DNU in my book. Just not worth it.

 

I feel like you guys are the canaries in the coalmine. With AI scams in every sector are going to increase by orders of magnitude.
I wonder if this is what ends western society

 

One and only broker I didn't mind talking to after figuring out why he was asking for unheard of stuff, picture of truck with name on door, etc. was one who was really trying to look out for the driver hauling the load. Load ended up cancelling and didn't pay a hill of beans, I was thankful for that. But that broker was going to make certain the person or carrier actually doing the work was going to be paid. Broker in that instance was Integrity Express.

 

We very much are in almost every situation and the customers know that. IF a driver runs his reefer on cycle instead of continuous, insurance will deny the claim due to driver negligence. But customer wants their 50K for the value of the load. So as a broker, we are on the hook for that 50k and if the carrier wont pay (which 9 of 10 times they wont) we are left holding the bag and cutting a check. Customers know that. Same with giving new brokers freight at a loss. They take advantage and get a load ran for less, then tell you NO when you want a fair rate on future loads. So its why i always say brokers and carriers should be more on the same team than fighting against each other. Customers divide and conquer so to speak.

 

I know it sounds crazy when a broker asks for things like pics of the truck with name and MC#, but we deal with sooo many scam artists calling in that we really have no choice but to step up the game so to speak. I know Landstar is no loaded with my company and most others. They will 10000% call me and give your MC# just to get the details on a load. They have 100 Freight Guards double brokering.

So it is super important to all parties involved that we all do our due diligence when booking/tendering freight to protect all parties.