Car Shipping Scams: How to Avoid Fraud & Protect Yourself (2025)

Car shipping scams cost victims **$500-$5,000** annually. Learn to identify red flags, verify legitimate carriers, and protect yourself from fraud.

Common Car Shipping Scams

1. The "Too Good to Be True" Quote

**How it works:** Scammer offers 50-70% below market rate

Red flags:

Real example:

2. The Fake Broker Scam

**How it works:** Scammer poses as legitimate broker

Red flags:

What happens:

1. You pay the "broker"

2. No actual carrier is hired

3. Your car is never picked up

4. Scammer disappears with your money

3. The Bait and Switch

**How it works:** Quote one price, charge another

Red flags:

Real example:

4. The Identity Theft Scam

**How it works:** Scammer steals your personal information

Red flags:

**Protection:** Legitimate carriers only need:

5. The "Damaged Car" Scam

**How it works:** Carrier claims pre-existing damage

Red flags:

**Protection:** Always take detailed photos before pickup

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Red Flags to Watch For

Website Red Flags

❌ **No physical address** (P.O. box only)

❌ **Generic stock photos** (not actual trucks)

❌ **No customer reviews** (or fake reviews)

❌ **Broken website** (typos, poor design)

❌ **No contact information** (phone/email)

❌ **Domain registered recently** (less than 1 year)

Communication Red Flags

❌ **Poor grammar/spelling** in emails/calls

❌ **High-pressure tactics** ("limited time offer")

❌ **Refuses to answer questions** about credentials

❌ **Asks for payment via wire transfer** or gift cards

❌ **Won't provide written quote** or contract

❌ **Changes story** when questioned

Quote Red Flags

❌ **50%+ below market rate** (too good to be true)

❌ **Requires full payment upfront** (before pickup)

❌ **No itemized breakdown** of costs

❌ **"Additional fees"** mentioned after quote

❌ **Won't put quote in writing**

❌ **Pressure to decide immediately**

Carrier Red Flags

❌ **No FMCSA license number** or invalid number

❌ **No insurance certificate** or fake certificate

❌ **No DOT number** or suspended DOT number

❌ **No business address** (operates from home)

❌ **No customer references** or fake references

❌ **Negative reviews** or no online presence

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How to Verify Legitimate Carriers

1. Check FMCSA Database

**Website:** https://ai.fmcsa.dot.gov/hhg/

What to verify:

Red flags:

2. Verify Insurance

**Required:** Minimum $750,000 liability insurance

What to ask for:

Verify with insurance company directly

3. Check Business Registration

Search for:

Legitimate businesses have:

4. Read Reviews

Check multiple sources:

Look for:

5. Ask for References

Request:

Red flags:

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How to Protect Yourself

1. Never Pay Upfront

Legitimate carriers:

Scammers:

2. Use Escrow Services

How escrow works:

1. You pay escrow service

2. Carrier picks up car

3. Car delivered successfully

4. Payment released to carrier

Benefits:

FreightFloo provides built-in escrow protection

3. Take Detailed Photos

Before pickup:

After delivery:

4. Get Everything in Writing

Required documents:

Never rely on verbal agreements

5. Use Verified Platforms

FreightFloo advantages:

Traditional brokers:

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What to Do If You're Scammed

Immediate Actions (Within 24 Hours)

1. **Stop all payments** (cancel credit cards if needed)

2. **Document everything** (emails, texts, calls, receipts)

3. **Contact local police** (file police report)

4. **Report to FMCSA** (if carrier involved)

5. **Notify your bank** (if payment made)

Reporting the Scam

Federal agencies:

State agencies:

Online platforms:

Recovery Options

Limited options:

**Reality:** Most victims don't recover their money

Prevention for Others

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Legitimate vs Scam Comparison

Legitimate Car Shipping Company:

✅ **FMCSA licensed** with active authority

✅ **Physical business address** (not P.O. box)

✅ **Years in business** (established track record)

✅ **Positive reviews** from real customers

✅ **Payment upon delivery** (not upfront)

✅ **Written contracts** and clear pricing

✅ **Insurance certificates** readily available

✅ **Customer references** provided willingly

✅ **Professional communication** (proper grammar, clear answers)

✅ **Transparent pricing** (no hidden fees)

Scam Operation:

❌ **No FMCSA license** or fake/suspended license

❌ **P.O. box only** or no physical address

❌ **Recently established** (less than 1 year)

❌ **No reviews** or obviously fake reviews

❌ **Requires upfront payment** (before pickup)

❌ **Verbal agreements only** (no written contracts)

❌ **Won't provide insurance** or fake certificates

❌ **No references** or fake references

❌ **Poor communication** (typos, pressure tactics)

❌ **Hidden fees** and surprise charges

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FreightFloo's Anti-Scam Protection

1. Carrier Verification

Every FreightFloo carrier is:

2. Payment Protection

3. Transparency

4. Customer Support

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Cost of Scams vs Legitimate Service

Typical Scam Losses:

Legitimate Shipping Costs:

**Bottom line:** Legitimate shipping costs less than typical scam losses

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Scam Prevention Checklist

Before Booking:

During Process:

At Delivery:

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Stay Safe with FreightFloo

Why FreightFloo customers are protected:

Join 10,000+ customers who ship safely with FreightFloo

[Ship Safely with FreightFloo →](/signup?type=shipper)

**Don't become a statistic. Ship with confidence.** 🛡️