By Luis Lopez, AI transportation consultant, CEO of Go Hub.io Holdings Corp and subsidiaries, and host of the Freight Guru Podcast
A truck arrives at the shipper’s dock with a driver who has the right pickup number and a carrier name that matches the booking. The freight is loaded, the bill of lading is signed and the truck leaves. Hours later, the real carrier calls to say it is on the way. The freight is gone, and the truck that took it was never connected to the carrier that was booked.
This is fictitious pickup fraud. It is a form of cargo theft that relies on deception instead of force, and it raises difficult questions about who bears the loss. This article explains how it works, how liability generally plays out, what insurance may or may not cover, and how to verify pickups so it does not happen to you.
How fictitious pickup works
Fictitious pickups generally follow one of two patterns:
- Identity theft of a real carrier. The fraudster uses the name, MC number and USDOT number of a legitimate carrier. They may create look-alike email addresses or phone numbers, or take over a dormant account. The broker or shipper believes it is dealing with the real carrier.
- A fake or shell carrier. The fraudster sets up a company that appears to have authority, books loads and then sends a truck to collect freight that is never delivered.
In both cases, the fraudster obtains the load details, often by booking the load directly or by intercepting communications, and then sends a truck and driver with enough information to look legitimate at the dock. FMCSA publishes carrier registration data publicly, which helps honest parties vet carriers but also gives fraudsters real names and numbers to borrow.
Fictitious pickup is related to other freight fraud schemes, including double brokering and payment redirection. Our posts on double-brokering freight fraud and payment redirection fraud cover those patterns.
Who bears the loss
There is no single answer. Who bears the loss depends on the contracts between the parties and on how much diligence the broker and the shipper exercised. Outcomes vary from case to case.
The carrier whose identity was used
When a fraudster impersonates a real carrier, that carrier never had possession of the freight. Carrier liability for loss under the Carmack Amendment, 49 U.S.C. 14706, applies to carriers that actually receive the property. A carrier whose identity was stolen generally did not receive the goods, so it is not in the position of a carrier that lost freight in its care. The real carrier is usually a victim too.
The broker
Brokers must hold FMCSA broker authority and maintain a BMC-84 bond or BMC-85 trust. When a broker arranged the load, questions often focus on what the broker did to verify the carrier and how load details were communicated. The broker-shipper contract may include terms on carrier selection, verification duties and liability for loss. Courts and parties look closely at whether reasonable verification steps were followed.
The shipper
The shipper released the freight. If the shipper’s dock staff did not check the driver and truck against the load documents, the shipper’s own procedures may come into question. If the shipper booked the carrier directly, it may carry most of the risk.
For a wider look at how losses from theft are allocated, see our post on cargo theft liability and who pays.
Insurance: read the policy
Do not assume a cargo policy covers fictitious pickup. Some cargo policies exclude or limit losses caused by fraud, trickery or false pretenses, because the freight was voluntarily handed over rather than stolen by force. Other policies cover it, sometimes with conditions such as specific verification steps at pickup.
Shippers, brokers and carriers should each review:
- Whether the policy covers theft by false pretenses or voluntary parting.
- Any conditions that require verification procedures at pickup.
- Whether the policy responds to contingent cargo exposure, which matters for brokers.
- Notice requirements and deadlines after a loss.
If the coverage is unclear, ask the insurer or broker in writing before a loss happens.
Verification at pickup
Most fictitious pickups can be stopped at the dock if staff follow a consistent check. A practical routine:
- Match the carrier details. Compare the carrier name, MC number and USDOT number on the truck and the driver’s paperwork with the rate confirmation or tender.
- Match the pickup number. The pickup number should match exactly, and it should be issued only to the booked carrier.
- Check the driver and truck. Record the driver’s name and license details, the tractor and trailer numbers and the plate. Compare them with what the carrier provided in advance.
- Call back on a known number. Contact the carrier using a phone number from your own records or from public registration data, not a number the driver or a recent email supplied. Confirm the driver and truck are theirs.
- Escalate mismatches. If anything does not match, do not load until a supervisor and the broker or carrier confirm. A short delay is far cheaper than a lost load.
- Take photos. Photograph the driver’s credentials, the truck, the trailer and the plate before release.
Brokers can support this by sending verified driver and truck details to the shipper before pickup and by locking down changes to carrier contact information.
Where AI helps
Fraud detection tools can compare a carrier’s current contact details, email domains and booking behavior against its history and flag sudden changes. They can spot patterns such as a newly changed phone number, an email domain that differs slightly from the carrier’s usual one, or a carrier booking loads far outside its normal lanes. Our article on AI freight fraud detection and carrier vetting goes deeper.
AI does not replace the call-back and the dock check. It helps decide which loads need extra attention.
First steps after a fictitious pickup
- Report to law enforcement right away, with the truck, trailer, plate and driver details you recorded.
- Notify insurers promptly, following each policy’s notice requirements.
- Notify the other parties, including the broker, the real carrier and the consignee.
- Preserve records: emails, call logs, rate confirmations, gate logs, photos, video and the signed bill of lading.
Fast reporting and complete records give everyone the best chance of recovering the freight and sorting out liability.
For more conversations on freight and AI, subscribe to the Freight Guru Podcast.
About the author: Luis Lopez is a Miami-based AI transportation consultant and logistics entrepreneur, the CEO of Go Hub.io Holdings Corp and subsidiaries, and host of the Freight Guru Podcast.
This article is general information for the freight community, not legal advice. Talk to a transportation attorney about your specific situation.
