Fraud

In late 2024, retail giant Macy’s revealed a shocking accounting scandal involving its parcel delivery expenses. It said a single employee had managed to hide approximately $151 million in delivery costs over nearly three years, causing significant disruption to the company’s financial reporting and raising questions about its internal controls.

Logistics firm Freight Essentials filed a federal lawsuit against WWEX Group and its affiliates, alleging that the company is engaging in fraudulent business practices with hidden fees.

This week: Blue Yonder deals with a massive cyberattack and FreightWaves’ shares tips for dealing with porch pirates.

Recent headlines reveal how freight fraud is no respecter of national borders. Authorities have arrested Shenghua Wen, a Chinese national residing illegally in the U.S., on suspicion of exporting firearms, […]

Welcome to the inaugural edition of Fraud Watch, FreightWaves’ dedicated newsletter tackling the burgeoning crisis of freight fraud.

Strategic theft and straight theft are particularly prevalent in today’s market.

According to a new report by Becker Logistics, cargo theft varies seasonally and by mode and location.

The first-ever Freight Fraud Awareness Day, taking place on Tuesday, aims to unite the supply chain community in tackling schemes like double brokering and cargo theft, which have seen a 400% rise since 2022.

With scammers getting more sophisticated in compromising the security of cargo or a carrier’s sensitive information, brokers need access to the best technology available to help them efficiently deploy best-practice processes in their fight against fraud.

As cybercriminals evolve, companies must adopt cutting-edge defense strategies to protect their operations from significant financial and reputational damage.

Another executive at Polar Air Cargo has been sentenced to prison for defrauding the company for more than a decade.

Descartes recently acquired MyCarrierPortal to combine the strengths of both businesses, creating a more powerful solution for companies looking to boost efficiency while tackling fraud head-on.

A high-level executive at a prominent air cargo company was sentenced to prison for defrauding the company.

A Transportation Intermediaries Association report says the freight industry is “under siege” from fraud and must evolve to fight the ballooning problem.

U.S. Rep. Dave Joyce is spearheading an effort to have the Department of Homeland Security do more to combat organized retail crime in America.

Truckstop.com’s Brent Hutto discusses the company’s zero-tolerance policy toward fraud and its recent work with the FBI.

With fraud on the rise, verifying carriers has become one of the top ways shippers can fight fraud on the front lines.

Christopher Carroll, 54, of Farmington, Missouri, was found guilty by a federal jury for fraudulently obtaining nearly $3 million in Paycheck Protection Program funds.

A former executive at Polar Air Cargo received jail time as punishment for defrauding the company.

While the company continues to deny any wrongdoing, TuSimple has filed to settle its federal fraud case.

Corey Louis Hendrickson, 46, a former mayor of Willard, Missouri, and fleet dispatcher for Prime Inc., was sentenced to three years in federal prison for a scheme in which he used the names and Social Security numbers of drivers to steal money.

Two Midwest importers have settled a customs fraud case with the U.S. government for $10 million.

FreightTech hasn’t solved freight fraud, and regulators can’t figure out who is regulating it. Is there a solution?

Frances Hall has pleaded no contest to charges she was part of a multimillion dollar fraud scheme while she was co-owner of Bill Hall Jr. Trucking.

Strategic cargo theft from organized crime rings wreaked havoc on brokers and carriers in the first quarter of 2024.

This week: Verified Carrier discusses its unique way of vetting carriers, Vecna Robotics closes its Series C, Truckstop vets industry pets and Nvidia has a new offering for industry tech providers.

Highway’s Jordan Graft discusses how to fix fraud in the trucking industry at FreightWaves’ Future of Supply Chain event.

Lars Winkelbauer, a former high-level executive at Polar Air Cargo, received a four-year prison sentence for defrauding the company.

Descartes MacroPoint FraudGuard evaluates billions of data points related to freight location and shipment status in order to flag potential freight fraud.

Truckstop CEO Kendra Tucker said her company has taken steps to address freight fraud on its platform.

Transfix has launched tools aimed at protecting shippers, carriers and brokers from fraud.

Six people have pleaded guilty so far in a federal fraud case involving former executives at Polar Air Cargo, customers and service providers.

In this edition: A partnership formed to fight freight fraud; what is the future of e-commerce?; And cross-border freight gets a tech infusion.

As a freight broker, you are on the front lines of ensuring safe, efficient and compliant transportation of goods.

A Las Vegas man has been sentenced to supervised release and six months of house arrest for his role in a scheme to defraud the trucking company where he worked out of more than $112,000.

Strategic theft is particularly insidious because it often involves fraudsters manipulating the very tools that companies implemented in order to make their supply chains more efficient. 

Despite often being more dangerous in nature, cargo-related crimes in Mexico receive a fraction of the attention that is afforded to similar issues happening in the U.S. and Canada.

Joining a network of industry professionals provides a tangible sense of security in today’s market. This is especially true in the billing and payment space.

Federal prosecutors want to see Nikola founder Trevor Milton imprisoned for 11 years as punishment for lying to investors.

In this edition: Three intermodal companies form an alliance; DAT has zero tolerance; and Yellow’s legacy lives on.

DAT advises users who suspect they have received a phishing email impersonating the load board to promptly contact the customer service department.

All types of cargo fraud are on the rise. Brokers, specifically, should be especially aware of two growing types of fraud: double brokering and cyberattacks.

The ongoing recession has left both companies and individuals in financial turmoil, pushing existing bad actors to increase their fraudulent activities and prompting new fraudsters to enter the arena.

In this edition: Fraud takes no breaks for the holidays, it takes a lot of semi-trucks to move Thanksgiving, and lots of businesses can profit from the parcel rate wars.

2022 marked a worrying record for the trucking industry: It was the costliest year to conduct business for fleet operators, surpassing the record established in 2021. Spotting and preventing fraud […]

Convoy’s new system uses machine learning and other tools to identify possible fraud.

Earlier this year, Mexico became the United States’ top trading partner, and there is a significant amount of high-value freight crossing the border. Fraudsters looking to steal high-value cargo are […]

In this edition: Identity theft for freight brokerages on the rise, Brake Safety Week is upon us, and the battle for terminals heats up.

Partnering with Relay for digital fuel payments — and utilizing its integration through Amous — has completely eliminated fuel theft for PURE, saving the company an average of $10,000-$15,000 per month.

Criminals looking to steal high-value cargo are attracted to the vulnerabilities associated with international border crossings.

The marketplace is at its most fragile when rates plummet and virtually every carrier is scouting out opportunities to earn more. Unfortunately, many of the “too good to be true” rates carriers come across in a precarious market are just that: not true.

The more volatile and opaque market conditions become, the more opportunities scammers have to take advantage of unsuspecting companies. This is especially true when it comes to double brokering. 

Load board fraud hurts the American trucking industry and should be a top priority for everyone in the space.

TriumphPay and Highway join forces to create an exclusive algorithm that will combat double brokering.

The former co-owner of an Iowa trucking company was sentenced Tuesday for orchestrating an elaborate $250,000 check kiting scheme. He is also facing unrelated charges in state court that he allowed more than 800 pigs to starve or freeze to death in his care in December 2021.

Anahuac Transport Inc. pleaded guilty to potentially contaminating rocket fuel it transported to the Johnson Space Center.

A Florida trio was recently sentenced to federal prison for their roles in a $200 million infant formula fraud scheme.

As COVID-19 shut down businesses in the early days, criminal enterprises sought new ways to launder money, and that led them to e-commerce.

Odometer fraud is the disconnection, resetting or alteration of a vehicles’s odometer with the intent to change the number of miles indicated.

Federal prosecutors in Illinois have indicted six former railroad employees for allegedly fraudulently obtaining federal disability benefits.

A federal grand jury in New York has indicted trucking company owner Tony “Anatoliy” Kirik, 39, of Rochester, New York, in a reincarnated carrier scheme.

The growth in e-commerce coincided with an increase in cybercriminals attacking payment systems in 2020, with 50% more cyberattacks attempted in 2020 than in 2019, a new report said.

A new survey has found that while most businesses are concerned about cyberattacks, few are actually prepared for one.

A former New Jersey bookkeeper recently pleaded guilty to bank fraud in federal court, admitting she orchestrated an elaborate $1.7 million check-writing scheme using fraudulent company checks.

A federal grand jury indicted three Texas men – two truckers and a state worker – in connection with a scheme to sell commercial driver’s licenses (CDLs) without the drivers […]

Singapore, one of the world’s biggest centers for the supply of marine fuels, is now enforcing the mandatory use of mass flow metering system for the delivery of distillate fuels. The new mandate went into force as of July 1, 2019.

Senior U.S. District Judge Curtis L. Collier Jr. sentenced the final four women to be tried in the Pilot Flying J fraud case to probation and community service, the Knoxville News Sentinel reported.

Two former Roadrunner Transportation Systems executives were charged with multiple crimes related to accounting and securities fraud in a federal indictment unsealed Friday.

“It is hard to imagine a more clear scheme to defraud,” prosecutor Trey Hamilton said.

Mark Lavender, special agent with the Georgia Bureau of Investigations, awarded DAT’s Tami Hart with a “challenge coin” at the DAT User Conference in October for her efforts in helping the Bureau identify and track down hundreds of cases of false payments, cargo theft, and other transportation fraud.

A few years ago, cameras in trucks were viewed negatively by nearly everyone. That has started changing as more providers perfected the systems and word started getting out on how a camera could save a fleet from a million-dollar lawsuit, not to mention reducing risky driving behaviors.

Pilot CEO Jimmy Haslam III insists he had no knowledge of the fuel rebate fraud scheme his company perpetrated against thousands of its customers. But why does his name keep coming up in court?

Four more former Pilot Flying J executives formally pleaded guilty to charges related to the company’s alleged defrauding of carriers.