Stay One Step Ahead: How to Defend Against Trucking Fraud and Scams

Trucking fraud is not new, but it has certainly evolved. Even as trucking companies enhance their security measures, fraudsters continue penetrating fleet operations with tactics such as falsified documents, cargo theft, identity theft, bad actors posing as motor carriers, double brokering, and sometimes even manipulating digital systems. These criminals exploit the industry’s complexity, targeting various stakeholders at different stages of the transportation process.

Internal Steps to Protect Your Trucking Company Against Fraud

1. Invest in Your Own Email Domain: A dedicated email domain makes it easier for customers to identify legitimate communications from your company. General email addresses are easy targets for identity theft.
2. Avoid Using a Single General Email for All Employees: While having everyone use the same email account might seem convenient, this practice can expose your company to internal fraud. Assign unique email addresses to each employee to reduce risk.
3. Review Security Features for All Logins: Ensure that all security features, such as two-factor authentication, are enabled for logins with customers, vendors, and banks. This extra layer of security can prevent unauthorized access.
4. Consistency in Company Name Usage: Stick to one name, including any DBAs (Doing Business As), to avoid confusion. Using multiple names or variations can make your company more vulnerable to fraud.

Protect Against Broker or Carrier Fraud

1. Verify Authority via FMCSA Website: Always check that brokers or carriers have the proper authority on the FMCSA website. If they don’t, do not engage with them.
2. Compare Contact Information: Cross-check the contact details on rate confirmations with information on SAFER and your records. If any details have changed since you last worked with them, take the time to verify.
3. Request and Verify Insurance Certificates: Ensure the insurance certificate is current and active before doing business.
4. Evaluate Business Longevity: Consider how long the carrier or broker has been in business. While newer companies aren’t necessarily fraudulent, those with a more extended, well-documented history are generally less likely to be involved in scams.
5. Invest in Carrier Monitoring Services: If you’re a broker, consider using a third-party carrier monitoring tool to keep track of carrier information, safety ratings, and compliance.

Read about a documented double brokering fraud involving “Global Cargo Logistics.” https://getscalefunding.com/scale-funding-insights/double-brokering-scams/

If You Become a Victim of Fraud

1. Notify Your Financial Institution, Customers, and Suppliers: Alert them immediately to prevent them from falling victim.
2. Follow FMCSA Guidelines: Refer to the FMCSA’s guidelines for handling broker and carrier fraud and identity theft, available here.