The supply chain faces a growing threat from freight fraud and cybersecurity issues as criminals increasingly target small carriers and brokers, exploiting vulnerabilities in their systems and processes.
To combat this, marketplaces like Truckstop.com are investing heavily in advanced fraud detection and cybersecurity measures, leveraging AI and data analytics to identify and block suspicious activities.
Related: How freight fraud became the perfect crime
It’s an ongoing battle, as criminals continuously adapt their tactics.
In an interview with Truckstop.com Chief Relationship Officer Brent Hutto, he explains how industrywide collaboration, improved security protocols and stronger law enforcement partnerships are crucial to protect the integrity of the freight ecosystem.
Questions and answers were edited for clarity and length.
FREIGHTWAVES: As you reflect on this year, can you share Truckstop.com’s overall approach to fraud mitigation?
HUTTO: Companies like ours that were founded in the [facilitation of the freight transaction] have a responsibility to protect the people that help freight move in America. The predominance of this marketplace is not the large trucking companies and large brokerages; they are small trucking companies and freight brokerages.
When you look at those companies, they have very little to no cybersecurity divisions protecting their data and freight. Because of that, we want to behave in a manner that our actions create a trusted relationship with our customers.
We have to do that by proving our trust every day. Trust is an action. Trust is what you do every day so people can say, “That company has my back.”
Fraud became a reality of today’s freight marketplace. There are more than 22 countries that are coming after our freight in America. You can steal a freight payment or execute stealing freight without having to be in this country.
We have a responsibility to block out as many bad actors and attacks on our system [as possible] because losing one load or one payment could destroy our average customers.
We take that seriously because we are not a product, we are a marketplace that is in the middle of all this country’s freight.
FREIGHTWAVES: In the Risk Factors release, Truckstop.com reported it had blocked 8,605 potential fraud attempts to onboard and create a Registry Monitoring Insurance Services (RMIS) account and 5,086 suspicious attempts to participate on your load board. Could you elaborate on the company’s process of stopping those attempts?
HUTTO: Since the beginning of the year, we have actually stopped over 21,000 nefarious fraud attempts to our systems. This has been done using our own technology, AI, high-level fraud-detecting technologies and manual checks of carrier identity.
RMIS in particular is becoming a fraud detection product for us on top of an onboarding and insurance monitoring product. RMIS wasn’t built to be a fraud detection product, but just because something wasn’t intended to be used for something doesn’t mean you can’t continue developing the product as an additional part of protecting our freight marketplace.
We have also added multifactor authentication and our new product Risk Factors to help brokers vet new carriers. It’s using our data to the broker and carrier’s advantage.
FREIGHTWAVES: You mentioned in your Risk Factors press release that you have been working closer with the FBI to report potential fraud. Could you elaborate on how your relationship with authorities on these matters has improved?
HUTTO: As we began seeing fraud attempts increase, we reached out to our contacts at the FBI to discuss the situation.
They did not fully realize the extent to which fraud has grown in our industry, so our contacts began calling some of their regional offices and stopped calling when they counted up to $300 million in losses, realizing the extent of the problem.
We just had a follow-up conversation with the FBI last month, and they said they are ready to begin engaging with players in the freight marketplace on how they can work to start putting some measures in place to defend from fraud.
Unfortunately, when freight is stolen, it is generally a state issue, not a federal issue. But when it can be recognized as a federal issue, you can put more teeth behind the punishment, which gives fraudsters limits to the motivation to commit the crime in the first place.
Getting to that place with the federal government will take awhile, but we are glad that they are taking our phone calls and having productive conversations about what can be done.
Most importantly, what I would want to communicate to your readers would be that the best thing you can do is to report it. Make sure you’re actually reporting it with the FBI. All the reporting information you need is on Truckstop.com, whether it is your freight being stolen, a payment being stolen or a cybersecurity crime.
FREIGHTWAVES: What advice would you give freight actors today to help protect them from fraud in the future?
HUTTO: The criminals will continue to change how they approach fraud, and I think what is on the horizon is an industrywide cybersecurity focus in order to stop sophisticated fraud in its tracks.
The main problem with fraud right now is not load boards themselves, it’s how bad actors are getting into the load boards. This is why we have concentrated on making our systems effective but secure.
By the way, these attacks are happening every day, and we have an entire division in our company just to deal with that. Their job, our responsibility again, is to figure out how to protect the systems that have been adopted by brokers and carriers to keep those bad actors out.
I don’t think the average broker understands how often they are at risk outside of our marketplace and our protected systems. We only see about 25% of brokers’ freight. Yet, these bad actors are also hiding within your email blasts and private offers that create an environment for phishing attempts. The next thing you know, they are in your systems and watching you.
For carriers, selling an MC to anyone without vetting can create the same hazard. Please don’t also give them your marketplace account login information too, because there is a reason why they are asking for it.
I think it’s about time that we all protect each other in this industry the best we can.
How freight fraud became the perfect crime