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The Client
Our client in this case is a major distributor of electronic components, including high-value items such as batteries. These items require careful handling and secure transportation, making it critical to choose reliable carriers and logistics providers. The client had entrusted Speedy Freight to ensure that their freight would be delivered safely and securely from a transload facility to a distribution center.
The Consignment
The consignment consisted of a large shipment of batteries, which were to be collected from a transload facility and delivered for the final mile to a distribution center. Given the high value of these batteries, security and careful handling were top priorities for the shipment.
The Challenges
During the collection process, several red flags raised concerns about the legitimacy of the transaction:
- Double Brokering: The carrier who was dispatched to collect the shipment appeared to be a fraudulent operator. This was initially identified when our team began coordinating with the driver and noticed discrepancies in the communication.
- Inconsistent Communication: We realized that the driver we were speaking to on the phone was not the same individual as the one we had been corresponding with via email. This discrepancy was a clear indication of potential fraud.
- Failure to Accept GPS Tracking: As part of our security procedures, we require all drivers to accept tracking via Macropoint, which allows us to monitor the shipment in real time. The drivers in question refused to accept this tracking system, which is non-negotiable at Speedy Freight.
- Driver Behavior: When the drivers' phones were turned off unexpectedly, the situation grew even more suspicious. The lack of communication and abrupt phone disconnection led us to believe the operation was fraudulent.
The Solution
Speedy Freight acted swiftly to prevent the fraudulent transaction from proceeding:
- Identifying the Fraud: Upon realizing the discrepancies in communication and the refusal to accept tracking, we quickly connected the dots that the carrier's email and company information had been hacked. This was confirmed when we cross-checked the driver's information and found it to be inconsistent with the legitimate carrier records.
- Stopping the Transload Facility: We immediately alerted the transload facility and instructed them to halt the loading process, preventing the fraudulent carrier from taking possession of the high-value shipment.
- Recovering the Freight: Our team quickly coordinated with a preferred, trusted carrier to recover the freight from the transload facility. The shipment was successfully and securely transported to the distribution center without delay.
- Reporting to Authorities: We took the necessary steps to report the fraudulent drivers to the police, ensuring that the incident was documented and investigated further to prevent any future occurrences.
Thanks to our rigorous carrier verification process, 3-way match checks, and non-negotiable tracking requirements, we were able to protect our client’s valuable consignment from falling victim to carrier fraud. Our quick-thinking and fast response, along with our trusted carrier network, ensured the timely recovery of the freight and the security of the shipment.
We understand the risks associated with carrier fraud and are committed to safeguarding your high-value shipments. If you’re looking for a reliable logistics provider who prioritizes security, we’re here to help.
Get in touch with Speedy Freight to learn more about our secure freight brokerage services. Download our guide here to see how we actively fight and prevent carrier fraud.
