Is your company safe? Industry leaders release guide with 5 strategies for produce fraud prevention
October 17 , 2025
A coalition of produce industry leaders released A Guide: Fraud Prevention in Produce to help companies protect themselves against produce fraud, which costs the industry tens of millions of dollars annually.
The guide, facilitated by Blue Book Services and developed by experts from the IFPA, USDA/PACA, Dispute Resolution Corporation, among others, 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 ongoing fraud event, I had no idea it would be the tip of the proverbial iceberg for our industry,” says Dante Galeazzi, President of the Texas International Produce Association.
The state association said it collected evidence showing fraud happening to 20 different companies last year alone.
The growing produce fraud threat
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 produce fraud.
The Transportation Intermediaries Association documented a 68 percent increase in produce fraud in just six months, while the Federal Trade Commission reports impersonation fraud has quadrupled in the past year.
“Our industry is experiencing an alarming increase in fraud events from a sophisticated network of actors who understand the fresh produce industry,” says Markquell Crooms, Accounts Manager for The Fresh Connection.
The executive points out that fraudsters have intimate knowledge of the industry, knowing the questions to ask and the companies and commodities involved.
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 products with no intention of payment.
The industry is uniting around actionable solutions
“Fraud is one of the most disruptive forces in produce trading today,” says Kirk Soule, CEO of Blue Book Services. “This guide is about developing awareness and offering practical solutions to help identify and verify potential threats."
The Blue Book executive added that produce fraud prevention can’t be reactive anymore, and companies of all sizes have 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,” he said.
The guide for Fraud Prevention in Produce provides practical strategies across five critical areas:
Strengthen verification protocols
Blue Book analysis shows that multi-source verification of trading partners reduces produce 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 produce fraud is suspected.
Share intelligence across the industry
When companies report produce fraud schemes through credit agencies, trade associations, and industry networks, others can act before becoming victims themselves.
Preparation and prevention—the key to fighting product scams
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.
“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,” says Bill Zentner, Vice President, Ratings Service for Blue Book Services.
These one-page tools provide step-by-step guidance for sales and logistics teams to use when vetting new companies or evaluating transportation options.
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