Cloudflare researchers have issued a warning about the potential risks associated with double brokering scams, cautioning that victims could suffer more than just financial losses. The scams involve threat actors impersonating legitimate carriers or freight brokers to deceive shippers into handing over valuable shipments. In some cases, the impersonators repost the shipment at a higher price to lure legitimate carriers, only to disappear when it’s time for payment, leaving the victim out of pocket.
The repercussions of falling victim to these scams can be severe, as they can result in delayed, damaged, or lost shipments if handed over to unreliable or unsafe carriers. This not only leads to financial losses but also tarnishes the victim’s reputation, especially if the shipment is uninsured. The deceptive tactics employed by threat actors in double brokering scams highlight the need for shippers to exercise caution and verify the legitimacy of carriers or freight brokers before engaging with them.
To defend against double brokering and other Business Email Compromise (BEC) attacks involving impersonation, companies are advised to take proactive measures. One of the key steps is to thoroughly vet the carriers or freight brokers reaching out to them and verify the authenticity of the domain names in their email addresses. Threat actors often manipulate domain names by adding terms like “LLC” or “INC” to the end of legitimate company names to create fraudulent domains that appear genuine. Therefore, it is crucial for companies to be vigilant and scrutinize all communications to detect any signs of fraud.
By being vigilant and conducting thorough due diligence, companies can reduce the risk of falling victim to double brokering scams and protect themselves from potential financial losses and reputational damage. It is essential for businesses to stay informed about the evolving tactics used by threat actors and implement robust security measures to safeguard their assets and operations. With the right precautions in place, companies can mitigate the risks associated with double brokering and other forms of deception in the logistics industry.