A Step-by-Step Guide to Preventing Trucking Fraud
Fraud has long been a part of the trucking industry, but the methods have grown more advanced.
Even as companies tighten their security, bad actors are still managing to slip through. From fake paperwork and stolen loads to identity theft, impersonators, double brokering, and digital system tampering, the schemes keep evolving. What makes it especially challenging is how these scams take advantage of the industry’s complexity, hitting different players at different points in the process.
4 Internal Measures to Safeguard Your Trucking Business from Fraud
1. Use a Dedicated Email Domain
Setting up a personalized email domain helps your clients recognize legitimate communication from your business. Generic email addresses are more susceptible to impersonation and identity theft.
2. Assign Individual Email Accounts
Having all employees share a single general email may seem efficient but increases your exposure to internal fraud. Providing each team member with their own email address significantly minimizes that risk.
3. Enable All Available Login Security Features:
Make sure security protocols like two-factor authentication are activated for all logins involving customers, vendors, and financial institutions. These added measures enhance protection against unauthorized access.
4. Standardize the Use of Your Company Name
Always operate under a consistent name, including any DBAs (Doing Business As), to avoid potential confusion. Switching between different names or variations can increase your vulnerability to fraudulent activity.
Steps to Prevent Broker and Carrier Fraud
1. Verify FMCSA Credentials
Before engaging with any broker or carrier, confirm their operating authority through the FMCSA website. If they’re not authorized, do not proceed.
2. Cross-Check Contact Information
Match the contact details on rate confirmations with data from the SAFER system and your internal records. If any contact information has changed since your last interaction, take the time to confirm its validity.
3. Request and Confirm Insurance Coverage
Always ask for an insurance certificate and make sure it’s up to date and currently in force before initiating any business.
4. Assess How Long the Business Has Been Operating:
Look into the company’s operating history. While newer entities aren’t automatically suspect, those with a longer, verifiable track record are typically less likely to engage in fraud.
5. Consider Carrier Monitoring Tools:
Brokers should think about subscribing to third-party carrier monitoring services. These tools help track key data like safety scores, compliance status, and general carrier information.
Read about a documented double brokering fraud involving “Global Cargo Logistics.”
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.