Credit Fraud Alert: Freight Forwarders Targeted by Sophisticated Scams

Freight forwarders are being warned to stay alert, as a rise in credit fraud is catching many operators off guard—and costing them dearly.

All aboard!!

According to insurer TT Club, fraudsters are increasingly targeting the industry by posing as legitimate clients. Their goal? To secure extended credit terms on international shipments, only to disappear—leaving forwarders stuck with substantial carrier costs and no payment in sight.

Over the past 12 months, these scams have become more widespread, prompting TT Club to urge companies to tighten up on due diligence. The message is clear: don’t offer extended credit to new clients until a solid, trustworthy relationship has been firmly established.

How the Scam Unfolds

Here’s a typical scenario:

A new customer reaches out with a one-off shipment. The freight forwarder agrees to a competitive rate and, in good faith, extends a 60-day credit facility. The first shipment goes smoothly—so far, so good.

But then, things accelerate. More urgent shipments roll in, volumes increase, and just as quickly, the communication goes silent. The credit term comes and goes, the account remains unpaid, and the forwarder is left chasing ghosts and covering costs.

The Bottom Line: Stay Smart

While the hunt for new business is always a priority, protecting your company’s bottom line has to come first. It’s tempting to fast-track new leads, especially in a competitive market—but ignoring red flags can lead to major financial damage.

Be cautious. Be thorough. And don’t let eagerness override due diligence.