Freight fraud surged to unprecedented levels this year, unveiling vulnerabilities in the global supply chain and highlighting the urgent need for enhanced security measures.
The logistics industry faced a wave of sophisticated scams that disrupted operations and inflicted heavy financial losses.
According to freightwaves.com, from coordinated ransom schemes to pandemic relief fraud, 2024 showcased the growing sophistication and reach of bad actors in transportation.
These cases revealed a troubling pattern of exploiting systemic vulnerabilities. Fraudsters used tools like falsified documents, illegal carriers and shell companies to bypass regulations and manipulate financial systems. The industry saw brokers, carriers and investors fall victim to schemes that spanned everything from Ponzi operations to digital freight mismanagement.
Coordinated attacks, such as ransom operations targeting multiple brokers, highlighted the need for stronger safeguards against fraud. Similarly, pandemic-era relief programs intended to stabilize the sector became a breeding ground for financial lies, as fraudsters got their hands on millions meant for legitimate recovery efforts.
These stories serve as a wake-up call for logistics professionals, regulators and investors. They emphasize the importance of improving due diligence, enforcing compliance and adopting technologies like real-time tracking and fraud detection systems.
As the industry reflects on these scandals before the new year, lessons learned must shape the strategies and safeguards of 2025.
No. 1: Allegations of a $5M load ransom scheme by Agility Express
Illinois-based Agility Express was accused of holding 36 loads hostage in a ransom scheme targeting 22 freight brokers, with claims rising to 50 loads worth $5 million.
Sources reported being forced to pay debts, some dating back to 2019, to recover freight.
Throughout the investigation, industry leaders warned the scheme highlighted a growing threat of coordinated fraud within logistics networks.
No. 2: Trucking owner’s PPP scam lands him in prison
Former trucking company owner Roderick Billingslea made headlines for orchestrating a $564,000 Paycheck Protection Program (PPP) loan scam.
By falsifying documents and running illegal chameleon carriers, he violated federal bans and safety laws.
Sentenced to 30 months in prison and nearly $600,000 in restitution, Billingslea was a case study in the pandemic-era fraud that plagued relief programs.
No. 3: Next Trucking – from Amazon to almost gone
In the fall, digital freight broker Next Trucking furloughed most staff and halted operations after losing major clients Amazon and Tesla amid payment disputes.
Allegedly owing millions to carriers, Next’s problems deepened after Tesla bypassed the company to pay haulers directly.
The once-promising logistics player’s collapse underscores the industry’s vulnerability to financial mismanagement and strained client relationships.
No. 4: From NFL to PPP fraud
PPP fraud allegations continued as former NFL player Dana Howard and his business partners faced indictments for allegedly misusing $1.4 million in loans meant to support their trucking and construction businesses.
Prosecutors claimed funds were redirected for personal expenses, including home purchases and debt repayment. Attempts to secure a second loan, as well as falsified forgiveness applications, further escalated the case.
No. 5: Trucking tycoon turns Ponzi
Sanjay Singh, owner of Royal Bengal Logistics, was convicted for running a $112 million Ponzi scheme, misleading investors about his company’s profitability.
Singh promised high returns from investments in trucking operations but instead used the funds for personal expenses, including home renovations and mortgage payments.
The scheme continued for three years until federal authorities intervened. Singh now faces sentencing in February 2025.
