More than four fifths of TT Club insurance claims involving fraud or deception last year involved criminals posing as hauliers and other sub-contractors.
Fifteen per cent of cargo theft claims arise from fraud or deception, with carrier fraud – as it is known - accounting for 84% of such claims.
“No one – from freight forwarders, shippers, and carriers to container owners and logistics, ports, warehouse and depot operators – should underestimate how lucrative an industry fraud is,” said Mike Yarwood, managing director, loss prevention at TT.
TT Club says the majority of fraud targeting global supply chains is committed by organised crime gangs, who use well-honed and adaptable methods to exploit weaknesses such as disruption and congestion.
The insurer is supporting the industry with a range of TT Talks highlighting the risk fraud poses. Specific examples it draws attention to include the use of false, duplicated or inflated invoices, and mandate fraud such as intercepting and manipulating bank transfer details.
One common tactic is where fraudsters pose as forwarders using a freight exchange site and provide false instructions to a driver, allowing them to intercept the goods and direct them to a new location.
“A key aspect of this scenario is that the driver and the shipper are not in direct contact with one another,” explained Mr Yarwood.
“To avoid incidents such as this and other frauds it is crucial to make employees aware of the possibilities, to take extra care to verify documentation and instructions directly with customers and partners.”
