40 Bill of Lading Fraud Scenarios

How to spot a fraudulent bill of lading



“Banks, traders and other parties have lost at least $9 billion through falsified documents in the commodities industry alone…” Bloomberg


Reduce your chances of being part of the statistics by grabbing a copy of this sheet:

40 BILL OF LADING FRAUD SCENARIOS.


Can you or your team members spot a fake bill of lading?

If not,

Here are those we could think of:

1. Duplicate Bill of Lading

Spotting: Look for multiple bills with the same cargo details but different serial numbers. Cross-check with the carrier and other involved parties.

Prevention: Implement a tracking system for bill of lading numbers and maintain strict control over the issuance process.

2. Altered Description

Spotting: Compare the description of goods on the bill of lading with other documents like invoices and packing lists.

Prevention: Employ a system of cross-verification of cargo descriptions across all shipping documents.

3. Fictitious Shipper or Receiver

Spotting: Verify the legitimacy of the shipper and receiver through independent background checks.

Prevention: Establish a process for vetting and approving shippers and receivers before accepting contracts.

4. Overstated Quantity or Quality

Spotting: Physically inspect the cargo and compare it against the bill of lading details.

Prevention: Regular audits and physical inspections of cargo at different stages of the shipping process.

5. Understated Value

Spotting: Compare the declared value on the bill of lading with market values and other documentation like commercial invoices.

Prevention: Implement a verification system for values declared on shipping documents.

6. Fake or Altered Dates

Spotting: Check the dates on the bill of lading against vessel movement records and other documentation.

Prevention: Create a protocol for validating dates on all shipping and customs documents.

7. Concealed Damage

Spotting: Conduct thorough inspections of cargo before and after shipping.

Prevention: Implement stringent cargo inspection procedures at all loading and unloading points.

And 33 others.

What did we miss?