Truckstop is diving into the 4 main types of fraud that specifically target freight carriers and independent owner-operators

Truckstop Fraud Prevention Friday: Protect Yourself Against Fraud

Transportation industry insiders are seeing historic levels of fraud in the freight market, where an increasing number of scammers falsely identify themselves with the intent to steal either cargo or pay. Not only are digital scams pervasive in the freight industry, but hijacking of entire trucks while on the road are also major concerns to be aware of. Falling victim to fraud can cost you time, money, and potentially your reputation as a trusted owner-operator. When every dollar matters, it’s important to protect yourself from any unnecessary losses. Here are the 4 main types of fraud that specifically target freight carriers and independent owner-operators:

1. Theft – Theft can occur when a fraudster infiltrates an online payment system and duplicates invoices then falsely submits them to collect/steal the money. Cargo theft can occur when a criminal poses as an authentic carrier and intercepts haulage instructions, falsifying cargo pick-up or delivery documentation to steal loads, or poses as a freight forwarder and gives a driver false instructions. They act as a middleman between a legitimate hauler and shipper, giving the driver new instructions and an alternative address where the cargo is then stolen. Cargo theft can also be blatant stealing of goods right off your truck.
2. Phishing and smishing scams – Phishing scams are fraudulent emails or websites, mostly via business emails, whereas smishing scams are fraudulent text messages. Both trick people into giving their passwords or other confidential data. A scammer will impersonate an official source to gain sensitive personal security information with the intent to steal a carrier’s identity. Always be cautious when clicking on links in emails and texts and never give your password to anyone who requests it
3. Factoring scams – Factoring has also become a major target for fraud. Scammers will send fraudulent advance pay notices, either inflating the numbers of a real invoice or requesting payment for a service they didn’t provide. Partnering with a reputable freight factoring company with tools in place to identify suspicious activity and stop bad actors can help keep you safe
4. The DOT scam – In this scam, a fraudster poses as a DOT representative or an on-site police officer during a DOT inspection and contacts a trucking company demanding payment for a fictitious violation. Or, a scammer sends a letter to the trucking company requesting payment to renew their DOT. (USDOT numbers are filed and renewed for free on the FMCSA website).

Ways to help protect your business from fraud

• Thoroughly vet everyone you work with. Never do business with another carrier or broker without thoroughly investigating them first to verify their identity and trustworthiness.
• Avoid re-using passwords and login numbers. Using the same password for all your accounts can expose you to security risks. Create unique passwords and logins and change them frequently
• Communicate. Don’t hesitate to ask questions, especially if you notice suspicious behavior. Verify details with all involved parties and dig deeper if the specifics of a particular load seem unusual or don’t quite add up. Keep friends and family notified of your whereabouts and check in regularly
• Take physical security measures. Pay attention to your surroundings to protect you and your freight. Park safely (in view of security cameras if they exist) and invest in a dash cam. And always use locks, security seals, and security devices if the cargo you’re in charge of is susceptible to theft. Report any suspicious activity to law enforcement.

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