A coalition of produce industry leaders has released A Guide: Fraud Prevention in Produce, a comprehensive resource designed to help companies protect themselves against the rapidly escalating threat of fraud that has cost the industry tens of millions of dollars annually.

The guide, facilitated by Blue Book Services and developed by experts from the International Fresh Produce Association, Texas International Produce Association, USDA/PACA, Dispute Resolution Corporation, Kings River Packing, The Fresh Connection and Latitude Group, addresses the dramatic surge in impersonation and ghost company fraud schemes targeting the specialty produce sector.

“When I received the first call in June from a member with an on-going fraud event, I had no idea it would be the tip of the a proverbial iceberg for our industry,” said Dante Galeazzi, president of the Texas International Produce Association. “By the end of the summer, our association collected evidence showing fraud had happened to 20 different companies in the last year alone.”

Recent industry surveys reveal the severity of the problem: 54 percent of produce companies report that fraudsters have attempted to trade with them, while 41 percent have been direct victims of fraud. The Transportation Intermediaries Association documented a 68 percent increase in fraud in just six months, while the Federal Trade Commission reports impersonation fraud has quadrupled in the past year.

Bad actors are deliberately exploiting the produce industry's core strengths—speed, relationship-driven transactions, and quick decision-making on perishable products. Fraudsters impersonate legitimate companies, create shell businesses with no real operations, and exploit standard credit terms to obtain product with no intention of payment.

“Our industry is experiencing an alarming increase of fraud events from a sophisticated network of actors who understand the fresh produce industry,” said Markquell Crooms, accounts receivables/credit manager for The Fresh Connection. “These fraudsters have intimate knowledge our industry, they know the questions to ask, they know the companies and commodities, but most importantly they know how to exploit our weaknesses.”

“Fraud is one of the most disruptive forces in produce trading today,” said Kirk Soule, CEO of Blue Book Services. “This guide is about developing awareness and offering practical solutions to help identify and verify potential threats. Fraud prevention can’t be reactive anymore. Every company, large or small, has a role to play in tightening controls, sharing intelligence, and supporting industry reporting channels. The more we work together, the harder we make it for bad actors to operate.”

The guide provides practical strategies across five critical areas:

• Strengthen Verification Protocols: Blue Book analysis shows that multi-source verification of trading partners reduces fraud incidents by 70 percent compared to single-source verification. The guide recommends validating buyer identities through trusted third parties like Blue Book Services, PACA and DRC, while independently confirming business addresses, email domains, phone numbers, and banking information.
• Implement Transactional Safeguards: Establishing clear onboarding procedures, credit limits, and approval hierarchies creates a critical second line of defense against fraudulent transactions.
• Train Teams to Be Alert: Sales, credit and logistics personnel must receive ongoing training to recognize red flags, including suspicious email domains, pressure to bypass normal procedures, and reluctance to provide standard references.
• Plan Response Protocols: Having established procedures to stop shipments, notify law enforcement, and alert industry watchdogs ensures swift action when fraud is suspected.
• Share Intelligence Across the Industry: When companies report fraud schemes through credit agencies, trade associations, and industry networks, others can act before becoming victims themselves.

“The pace and sophistication of fraud targeting the produce industry has reached unprecedented levels – making it less a question of if your business will be targeted, and more a question of when,” said Bill Zentner, vice president, Ratings Service for Blue Book Services. “By developing a 'trust but verify' trading culture, and implementing basic but proven protocols, your company will be able to respond to threats more confidently.”

The complete guide, including quick-reference desktop checklists for buyer verification and transportation fraud prevention, is available through Blue Book Services and participating industry associations. These one-page tools provide step-by-step guidance for sales and logistics teams to use when vetting new companies or evaluating transportation options.