Fraud via freight exchanges is skyrocketing: Here's how to protect your business

How does freight exchange fraud work?

Criminals harvest details of real carriers, often directly from freight exchanges. They then register an email address that closely resembles the original company’s, using subtle spelling changes like “logistic” instead of “logistics” or switching a letter or two. Insurance certificates and licences are sometimes forged or simply downloaded from public platforms.

With a fake email address, fraudsters approach the freight provider, often citing relevant postcodes or loading/unloading sites. In several Eastern European countries, even reputable transport firms use free email services like Gmail, which makes verification trickier. Once the job is assigned, a truck appears at the agreed location. The driver provides correct load references and paperwork, but once loaded, the shipment vanishes without a trace.

Why freight exchanges are so vulnerable

Findings show that freight exchanges act solely as facilitators, they connect parties but are not contractual entities in the transport agreement. This makes it virtually impossible to hold them liable in cases of fraud. Moreover, shipments may unknowingly be passed along the chain and reappear on an exchange platform, even without the main carrier's knowledge. In such cases, the principal carrier may be held fully responsible for any damages.

How to protect your company

Vigilance is key. Thoroughly verify contact details, check transport licences carefully, and be cautious when engaging unfamiliar subcontractors via freight exchanges. It’s advised to entrust high-value loads only to recognised, trusted partners.

Even if you've taken every precaution, you may still fall victim to fraud. In that case, speed is vital: report the incident immediately to the police, inform all parties involved, and gather as much evidence as possible (e.g. CCTV footage, emails, CMRs and other key documents).

Insurance as part of the solution

No insurance policy can completely eliminate fraud, but a robust transport insurance plan is still an essential safety net. Experts note that certain types of fraud are relatively easy to avoid. In cases of poor oversight or blindly hiring subcontractors, the main carrier may face extensive liability.

That’s why insurers increasingly include specific clauses around subcontractors and digital verification processes, not to create hurdles, but to encourage heightened vigilance across the transport chain.