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How Double Brokers Scam Carriers

Double brokering is a scam in the trucking industry where a broker contracts with a carrier to transport a load, but then contracts with another carrier to actually transport the load. The first broker then pockets the difference between the two rates.

This scam can be costly for carriers, who may be left without payment or may be forced to pay more than they were originally quoted.

There are a number of ways that double brokers can scam carriers. One way is to offer a rate that is too good to be true. Carriers should be wary of any broker who offers a rate that is significantly lower than the market rate.

Another way that double brokers can scam carriers is to ask for payment upfront. Carriers should never pay a broker upfront for a load. The only time a carrier should pay a broker is after the load has been delivered and the carrier has been paid by the shipper.

Finally, double brokers can scam carriers by not providing references or by providing false references. Carriers should always ask for references from brokers before they agree to transport a load.

If you suspect that you have been the victim of double brokering, you should report it to the authorities. You can also file a complaint with the FMCSA.

Here are some additional tips to help you avoid double brokering scams:

  • Do your research. Before you hire a broker, take the time to research the company. Look for reviews online and ask for recommendations from other carriers.
  • Get everything in writing. Once you have found a broker that you trust, make sure to get everything in writing. This includes the rate, the terms of payment, and the responsibilities of each party.
  • Be aware of red flags. If you see any red flags, such as a broker offering a rate that is too good to be true, be cautious.
  • Trust your gut. If something doesn’t feel right, it probably isn’t. If you have a bad feeling about a broker, don’t hesitate to walk away.

By following these tips, you can help to protect yourself from double brokering scams.

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