Freight Factoring Fraud: Why Broker Calls Don’t Work Anymore

Semi-truck on highway at sunset representing freight transportation

Table of contents article

Factoring fraud has exploded, especially through double brokering, which is now the most common and costly scam in the industry. Calling a broker to “confirm delivery” does nothing to prevent it because the load often does deliver, just not by the carrier you funded. The only way to verify truthfully is through an independent third-party source: the carrier’s ELD.

The new face of factoring fraud

Fraud in freight factoring has evolved. Today, scammers impersonate legitimate carriers, take loads, and then re-broker them to someone else. The freight arrives, the broker confirms delivery, and the factoring company unknowingly funds the wrong carrier.

Traditional verification fails because it confirms the load, not the carrier. The broker says, “Yes, it delivered,” but that tells you nothing about who actually hauled it.

The only reliable check: ELD data

Nearly every truck in the United States is required to use an Electronic Logging Device (ELD). These devices record precise, tamper resistant GPS data for every pickup and delivery.

By matching invoices to verified ELD activity, a factor can prove:

The carrier’s truck physically picked up and delivered the load
The trip matches the rate confirmation route
The funding request is valid and not double brokered

No phone call or document check can provide that proof.

Where technology changes the game

Modern verification systems now use ELD telemetry and automated document scanning to flag suspicious loads instantly.
Load Connex’s FraudCheck and Load Validation tool is one of the only systems doing this today. It verifies pickups and deliveries using ELD data and learned carrier behavior, detects document tampering, and automatically texts drivers to collect real proof of delivery immediately after drop off.

With verified load data, factors can fund faster, extend advances confidently, and eliminate double brokering risk before it happens.

In summary

Factoring fraud cannot be stopped by calling brokers or trusting PDFs.
It requires independent verification from the carrier’s own ELD, the one source that cannot lie.

That is how modern factoring companies are protecting themselves today, and why ELD based validation is the new standard for funding with confidence.

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