The trucking industry is grappling with a surge in freight fraud, leaving carriers, brokers, and shippers vulnerable to sophisticated scams like identity theft and unauthorized double brokering. These schemes disrupt supply chains, undermine trust, and cause significant financial and logistical challenges. The root cause is the Federal Motor Carrier Safety Administration’s (FMCSA) inadequate management of carrier identities, which allows criminals to exploit outdated systems and weak oversight.
How Criminals Exploit Basic Vulnerabilities
The FMCSA’s outdated data systems and lax verification processes make fraud easy. Criminals register fraudulent carrier identities using stolen credentials or fake documents to obtain Motor Carrier (MC) numbers with little scrutiny. Without real-time monitoring, they manipulate records or reactivate dormant registrations undetected, enabling double brokering—where fraudsters pose as legitimate carriers, secure loads, and subcontract them without authorization, leaving others unpaid. Identity theft is widespread, with criminals hijacking carriers’ profiles to divert payments or secure contracts, damaging reputations. The lack of biometric or multi-factor authentication allows repeat offenders to re-enter under new aliases.
Many of these issues stem from basic oversights. The FMCSA doesn’t require robust identity checks, like verifying driver’s or business licenses, and lacks cybersecurity measures like two-factor authentication. Automated alerts for suspicious activities, such as multiple registrations from one IP address, are missing, and routine database audits to flag duplicate or dormant MC numbers are inconsistent. These are standard practices in banking and e-commerce, yet the FMCSA’s reliance on manual processes and outdated software leaves loopholes for criminals. Organized crime syndicates exploit these gaps, costing the industry millions annually.
Private companies like Highway, RMIS, and Carrier Assure have stepped in with innovative solutions. Highway offers real-time carrier monitoring and fraud detection tools, while RMIS provides onboarding and risk assessment to verify carrier legitimacy. Carrier Assure uses advanced analytics to score carrier reliability and flag suspicious activity. These platforms help brokers avoid bad actors, but their impact is limited without systemic change. To make a real difference, the DOT must lead, working with law enforcement to prosecute fraudsters and enforce stricter regulations, ensuring a coordinated effort to protect the industry.
A Robust Response from the DOT
Under Secretary Sean Duffy, the DOT is tackling freight fraud with a forward-thinking strategy. Artificial intelligence (AI) is central, detecting fraud patterns that traditional methods miss. Speaking on FreightWaves’ What The Truck?!? podcast on June 27, 2025, Duffy said, “We have great AI tools that will bring us light years ahead in rooting out fraud patterns.” These tools aim to strengthen FMCSA system security and data integrity, preventing fraud before it harms legitimate businesses. The DOT is also partnering with law enforcement to identify and prosecute bad actors, fostering accountability across the supply chain and creating a secure, competitive environment for truckers.
Learning from Past Shortcomings
Historically, insufficient oversight and inactive load boards have worsened fraud vulnerabilities. Private-sector platforms have tried to fill these gaps, but their fragmented efforts lack cohesion. Private tech solutions have had to compensate for the DOT’s poor management of carrier identity. Duffy’s initiatives mark a shift toward unified oversight, combining technology and accountability to address longstanding issues. Private solutions aren’t going away, but they will build upon DOT’s efforts.
Building a Future-Ready Framework
The DOT’s strategy anticipates future threats by integrating AI, strengthening data security, and collaborating with law enforcement to set new fraud prevention standards. Duffy emphasized, “Rules must eliminate fraud and double brokering while treating truckers fairly.” This approach creates a resilient framework adaptable to evolving fraud tactics, ensuring long-term protection.
A Path to a Secure Trucking Industry
The DOT’s plan—leveraging AI, law enforcement partnerships, and regulatory reform—offers a promising path to secure the trucking industry. By addressing FMCSA vulnerabilities and prioritizing carrier identity management, the DOT aims to build a fair, transparent, and secure marketplace, safeguarding freight operations and supporting legitimate carriers, brokers, and shippers.
