Freight factoring companies are often the target of fraudulent activities, as they provide an attractive source of income for criminals. Unfortunately, this means that freight factoring companies must be especially vigilant about fraud attempts. The following are some of the most unusual attempts at fraud in the freight factoring industry – and how the companies have reacted.

• The first fraud attempt was an attempt to "double dip" on factoring fees. The fraudsters set up a company to factor freight, and then used that company to invoice their own freight factoring company for the same shipments. The fraudsters then collected both the freight payments and the factoring fees. This was quickly caught by the freight factoring company's internal controls, which noticed the discrepancy between the invoice and the payment.
• Another fraud attempt involved the use of stolen identities. The fraudsters would use stolen identities to create fake companies, and then use those companies to invoice freight factoring companies for shipments. The freight factoring companies were able to catch this fraud quickly, thanks to their internal systems that cross-checked the identity information of the companies making the invoices against known companies.
• A third fraud attempt involved the use of false invoices. The fraudsters would use false invoices to try and collect payments for shipments that had never been made. The fraud was caught quickly, as the freight factoring companies had systems in place to verify that the shipments had actually been made.
• The last fraud attempt was an attempt to use freight factoring companies as a money laundering scheme. The fraudsters would use the freight factoring companies to move money around, without paying taxes on the money. This was caught when the freight factoring companies noticed discrepancies between the invoices and the payments.

The takeaway from these examples is that freight factoring companies must have robust internal controls and systems in place to detect fraud attempts. They must also educate their employees on best practices when it comes to preventing fraud, and be aware of the latest fraud trends. By taking these steps, freight factoring companies can ensure that they remain safe from would-be fraudsters.