Freight brokers nationwide are facing staggering losses as cargo theft and increasingly complex fraud schemes run rampant through the industry, according to the latest State of Fraud in the Industry report from the Transportation Intermediaries Association (TIA), released this week.
TIA represents the third-party logistics (3PL) industry. The April report is based on a survey of TIA members as well as six months of fraud reports from TIA’s Watchdog reporting platform. Between September 2024 and February 2025, the group found a 65% increase in fraud reports compared to the previous reporting period, which spanned eight months.
Cargo theft and unlawful brokerage—which occurs when criminals pose as legitimate brokers to steal loads or payment—are some of the biggest problems.
Among the financial implications: 22% of respondents reported losing more than $200,000 due to fraud in past six months, and 10% said they have spent more than $200,000 on fraud prevention. This underscores “the dual cost of defending against and responding to these attacks,” according to TIA, which emphasized the toll the situation is taking on smaller businesses, in particular. More than 70% of TIA’s membership is made up of businesses that generate between $1 million and $5 million in annual revenue, according to the group.
Key findings from the report include:
- Truckload freight remains the top target: 97% of respondents cite this as the most fraud-prone mode.
- Unlawful brokerage remains the most common scam: 34% of respondents cited this scheme as the top fraud tactic they face. These scams often target small businesses and can disrupt the entire delivery process, leaving freight stranded or stolen, ultimately escalating costs and driving up prices for consumers.
- Fraud isn’t isolated: 83% of respondents said they experienced at least three types of fraud in the last six months.
- Fraud is a national problem, not just a regional one:The report highlights a growing wave of fraud across the country, with incidents reported in nearly every region. Texas, California, South Carolina, and Washington were among the top states where fraudulent activity originated—underscoring the widespread nature of the crisis.
- Fraud is driving up costs for consumers: Nearly half of all reported thefts targeted everyday goods that American families rely on—including household items and electronics/appliances. These losses drive up prices and disrupt the availability of essential products across the country.
“Strategic fraud and cargo theft in our industry has reached a boiling point. It’s no longer an inconvenience—it’s a crisis,” Chris Burroughs, TIA President & CEO, said in a statement announcing the report’s findings. “And our members are telling us loud and clear: they need more support, better tools, and stronger action from federal regulators. This report sheds light on what’s happening and what needs to change.”
In conjunction with the report, TIA released a Post-Fraud Incident Checklist to help companies when fraud occurs—from securing internal systems to reporting to law enforcement and contacting insurance.
The association is also backing measures that aim to reduce fraud and protect businesses and consumers, including the Household Goods Shipping Consumer Protection Act (H.R. 880 and S. 337) and the Combating Organized Retail Crime Act (CORCA) ( S.1404 and H.R. 2853), which TIA leaders say would provide additional tools for law enforcement to investigate and prosecute this crime.
