The global supply chain is the backbone of the world’s economy. From suppliers and manufacturers to transporters, retailers, and consumers, every step is interconnected. Yet, as powerful and efficient as it usually is, this vast network is highly vulnerable to disruption.
A cyberattack can delay shipments, halt construction projects, or leave manufacturers unable to get the parts they need—whether it’s for electronics, medical supplies, or even everyday goods. For consumers, it means missing out on the products they rely on, facing longer wait times for deliveries, or even seeing prices skyrocket as shortages set in. When cybercriminals target supply chain operations, the ripple effects can be devastating.
One of the growing threats in this space is phishing scams – specifically, double brokering fraud attacks. In the past few years, freight and transportation companies have faced an alarming rise in these scams. Complaints relating to double brokering have surged by 400% since 2022, with 50% of freight brokers naming it their top concern.
Attackers impersonate legitimate transport companies, tricking victims into divulging sensitive shipment details, which are then intercepted or redirected for financial gain. The consequences can be severe: financial losses, uninsured loads, delayed deliveries, and lasting reputational damage.
Field CTO for EMEA at Cloudflare.
Double brokering: The hidden cyber threat affecting global transport
Double brokering scams are particularly effective because they exploit the fast-paced nature of the logistics industry, where efficiency and cost savings often outweigh thorough vetting processes.
Here’s how they work: Scammers pose as legitimate freight brokers or create fake transportation companies. Using phishing emails, they gain access to shipment details – such as pick-up, destination, size, and scheduling. They then offer a lower rate than competitors for their services, in order to win contracts from unsuspecting businesses.
Once they secure the job, instead of transporting the shipment themselves, they pass it off to a legitimate carrier – often a real trucking company that believes it has been hired for a normal job. The scammer collects payment from the original client but never pays the actual carrier, pocketing the money and then disappearing – long before the fraud is discovered.
These scams have gained traction due to the sheer number of transportation companies out there, many of which – surprisingly in this digital age – operate without websites, making them much easier to impersonate. Meanwhile, phishing emails have become increasingly sophisticated, with scammers using real carrier numbers and forged (but legitimate looking) documents to avoid detection.
Why phishing is the perfect vehicle for double brokering
Phishing is the go-to tactic for double brokering scams because it doesn’t rely on hacking technical systems – it preys on human error. A simple click on a malicious link or an unwitting disclosure of shipment details can be enough to set a scam in motion. Since email is so ingrained in the supply chain, it provides cybercriminals with an easy, high-reward entry point.
Scammers often register fake domains that mimic legitimate ones (e.g., xyzshippingllc.com instead of xyzshipping.com). Once they deceive a victim into sharing shipment details, they act fast – hijacking the load and redirecting payments before anyone realizes what’s happened. The fallout extends far beyond financial losses. Businesses face delayed deliveries, lost or damaged goods, and a tarnished reputation that can have long-term consequences – leaving businesses to pick up the pieces long after the scam is over.
With cybercriminals becoming increasingly sophisticated, staying one step ahead requires a proactive approach to security, verification, and fraud prevention.
Staying ahead
The foundation of any cybersecurity strategy is awareness. Phishing may be subtle, but it’s preventable. Employees must be trained to recognize the warning signs of fraudulent emails – such as unusual variations, where cybercriminals swap out characters or add extra words like “LLC” or “INC” to make an email look legitimate. When in doubt, always verify. A quick call to confirm the sender’s identity before sharing sensitive shipment information can prevent costly fraud.
Technology plays a crucial role in strengthening defenses, but it’s not foolproof. Solutions like zero trust security postures help businesses secure their applications and data, ensuring only verified users and legitimate requests can access critical systems, reducing the risk of phishing-based fraud.
Email security protocols including DMARC, DKIM, and SPF, help reduce phishing threats, but they aren’t perfect – 89% of phishing emails still slip through traditional filters. This is where advanced technologies like machine learning and artificial intelligence provide additional benefits, identifying patterns and flagging suspicious activity with greater accuracy and in real time to detect fraud before it hits.
Beyond prevention, businesses must also focus on cyber resilience – the ability to withstand and recover from cyberattacks without significant disruption. It’s not just about preventing threats but ensuring operations can continue even if a breach occurs. Strengthening cyber resilience starts with evaluating your risks and vulnerabilities across the entire supply chain, from internal systems to third-party logistics partners, and making sure there is no weak link.
By combining awareness, advanced security tools, and a cyber-resilient mindset, organizations can stay ahead of cybercriminals and protect their operations from the growing threat of double brokering scams.
Collaboration is key
Protecting the global supply chain against phishing and cyber threats isn’t just an individual responsibility – it requires industry-wide collaboration. Given the complexity of modern logistics, mitigating cyber risks depends on businesses, industry groups, and regulators sharing knowledge, threat intelligence, and best practices.
For transport companies, cyber resilience must be a priority. Raising awareness, investing in advance technology, and promoting a secure culture can significantly reduce the impact of phishing scams and double brokering fraud. Meanwhile, consumers who interact with logistics platforms must also remain cautious, as cybercriminals exploit vulnerabilities at every level of the supply chain.
A stronger, more secure supply chain starts with identifying and reinforcing weak links. By making cybersecurity a shared mission, businesses can protect not just their own operations but the broader economy – ensuring a safer, more resilient future for global trade.
We profile the best Enterprise Resource Planning (ERP) software.
This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro
https://cdn.mos.cms.futurecdn.net/kwd6rUGHDkeVy8hf2NCL48-1200-80.jpg
Source link
