There are several types of fraud plaguing the transportation industry. Double brokering is on the rise, costing the industry over $100 million on an annual basis. Freight bill fraud — which is when freight is delivered but the payment is stolen — is also growing.
Perhaps most alarming, however, is the increase in instances where both the freight bill and the freight itself are stolen.
“That’s a huge issue. It has escalated to the point where everyone is focused on this,” said Brent Hutto, chief relationship officer for Truckstop. “Bad actors have come into our marketplace and taken advantage of data connection weaknesses in order to levy attacks.”
The marketplace is at its most fragile when rates plummet and virtually every carrier is diligently seeking opportunities to earn more. When carriers are desperate to make more money, they move fast to secure better rates. Unfortunately, many of the “too good to be true” rates carriers come across in a precarious market are just that: not true.
“The spirit of aggressiveness surrounding finding the best rate in the marketplace creates a situation where the actual participants are not doing their standard checks and balances,” Hutto said. “They are not asking really deep, probing questions to make sure they can vet and verify everything necessary, and they’re not leveraging technology to do that quickly and accurately.”
When companies forgo security protocols to take advantage of better rates, it creates an environment in which criminals slip through the cracks and fraud thrives.
To stop fraud in its tracks, companies need education programs, proactive policies and strong partnerships with companies like Truckstop.
“At Truckstop, we are committed to continually improving our technology solutions to stay ahead of the ever-evolving nature of fraud,” said Julia Laurin, chief product officer for Truckstop. “We rely on data obtained in real-timeand collaborate with industry partners and organizations, and actively engage with our customers to understand their changing needs. We are alsoworking alongside law enforcement agencies to support their fraud-stopping efforts.”
Truckstop has a long history of and commitment to providing rich, diverse, and unique data to drive carrier sourcing and selection decisions. The company’s RMIS solution is the leading carrier data, onboarding, and monitoring platform to reduce risks in the freight transaction process and has become an integral part of its security and fraud prevention efforts.
“RMIS provides a robust solution to mitigate the costly risks of double brokering, fictitious carriers, and hostage loads. With the extensive database of RMIS, carrier onboarding is fast and seamless, getting loads rolling faster than ever,” Laurin said. “Plus, RMIS helps customers identify areas where their business may be at risk..”
At the end of the day, putting a stop to fraud hinges on accurate and valid data. The data vetting process has, historically, posed a challenge for carriers and brokers alike. At Truckstop, the goal is to provide the safest, most secure environment. The company has created the largest database on the market, and it works to qualify all participants to make sure they should be playing in that marketplace to begin with.
“When freight gets stolen, nobody benefits. Even the consumer suffers,” Hutto said. “It doesn’t matter if it’s an energy drink ora high-value property like electronics. Nobody benefits when something’s stolen.”
In addition to implementing stringent security measures, Truckstop has launched an educational campaign — dubbed “Fraud Prevention Friday” — aimed at helping the freight transportation community prevent and mitigate fraud risks, including double-brokering scams, freight market fraud, common trucking scams and more.
“As a leader on this topic in the industry and a trusted partner to our customers, we wanted to address this industry problem, leveraging our expertise and industry insights to share best practices in fraud prevention,” Laurin said. “We understand the significant impact fraud can have on businesses and the industry as a whole. We aim to empower our customers with the knowledge and tools they need to proactively combat fraud, safeguard their operations and promote a more secure operating environment.”
Click here to access Truckstop’s Fraud Prevention Friday content.