Freight Brokers Grapple with a Fraud Crisis: Cargo Theft Surges 65% Nationwide

The freight and logistics sector is entering a new phase of crisis as cargo theft and sophisticated fraud schemes reach unprecedented levels.  According to the State of Fraud in the Industry report released last week by the Transportation Intermediaries Association (TIA), fraud in freight brokerage is no longer a nuisance—it’s a full-blown epidemic.

Between September 2024 and February 2025, reported fraud cases surged 65% compared to the previous period.  The data, drawn from TIA member surveys and reports submitted to the association’s Watchdog platform, paints a grim picture of rising risk and financial strain, especially for small and mid-sized freight brokers.

A Dual Blow: Losses and Prevention Costs

The TIA report exposes a financial double-bind: not only are brokers losing large sums to fraudulent activity, they’re also being forced to ramp up spending on prevention.  Nearly a quarter of respondents reported losses exceeding $200,000 due to fraud over just six months.  Alarmingly, 10% said they spent more than $200,000 on fraud prevention alone in that same time span.

This cost burden is hitting small businesses particularly hard.  Over 70% of TIA members are companies earning between $1 million and $5 million in annual revenue—making even a single fraud event potentially devastating.

The Top Scams: Truckload Fraud and Unlawful Brokerage

The most common—and damaging—schemes involve truckload freight, with a staggering 97% of respondents identifying it as the most fraud-prone mode.  These scams frequently involve unlawful brokerage, where fraudsters impersonate legitimate logistics firms, intercept freight, and either steal the goods outright or disappear with payment.

Unlawful brokerage was cited as the top fraud tactic by 34% of respondents, and it’s often small firms that find themselves in the crosshairs.  These bad actors manipulate digital platforms, falsify documents, or reroute loads, effectively hijacking shipments mid-route and leaving carriers, brokers, and shippers scrambling.

Widespread, Not Isolated

Fraud is no longer a regional concern.  TIA’s report shows that incidents are being reported in nearly every state, with notable hotspots including Texas, California, South Carolina, and Washington.  What was once considered a localized or occasional problem has now morphed into a nationwide threat that disrupts the logistics backbone of the U.S. economy.

Even more concerning, 83% of companies reported experiencing at least three types of fraud in just six months, ranging from phishing scams to identity theft and fictitious pickups.

A Consumer Impact: Higher Costs, Scarcer Goods

While freight brokers and carriers bear the brunt of the financial pain, the downstream effects are hitting consumers.  Nearly half of all reported cargo thefts involved essential household goods and electronics—items that Americans rely on daily.  These losses not only increase transportation costs but also disrupt supply chains, ultimately translating to higher prices and less product availability for families across the country.

Standing Strong: Road Scholar Transport’s Unmatched Security Record

In a time when fraud is disrupting the freight industry coast-to-coast, Road Scholar Transport stands out as a model of integrity and protection.  With an asset-based arm and a commitment to high-security shipping, Road Scholar has built a reputation for safeguarding freight with precision and vigilance.  From GPS-tracked vehicles and stringent vetting processes to temperature-controlled environments and real-time monitoring, every shipment is treated as critical.  And the proof is in the track record: Road Scholar Transport has never experienced a full cargo theft.

As theft and fraud continue to challenge freight brokers and shippers nationwide, Road Scholar remains a trusted partner, delivering peace of mind along with every load.  In an environment of growing risk, proven security isn’t a luxury—it’s a necessity.