How to Prevent Fraud in Trucking

Cargo fraud has witnessed a significant surge since mid-2022, with almost 700 reported theft incidents in the U.S. during the third quarter of 2023, marking a 59% increase from the same period last year, as reported by CargoNet.

Various forms of cargo fraud are on the rise, attributed largely to challenging economic conditions and vulnerabilities in the overall supply chain. Brokers, in particular, need to be vigilant about two emerging types of fraud: double brokering and cyberattacks.

Double Brokering: This deceitful practice involves bad actors posing as co-brokers for legitimate brokers or carriers, often leading to unpaid carriers and financial losses. The repercussions include increased chances of lost loads, damage to reputations, and a erosion of the trust crucial for the smooth operation of the trucking industry.

Cyberattacks: The trucking industry is increasingly susceptible to cyberattacks, a threat that allows malicious entities to exploit companies from the comfort of their homes. The industry’s rapid adoption of technology in recent years has outpaced the implementation of comprehensive security measures, leaving brokers and carriers vulnerable to hacking attempts that can redirect freight and compromise identities.

Preventing Fraud: To mitigate the risk of falling victim to cargo fraud, brokers can adopt several preventive measures:

  • Verify MC/USDOT Numbers: Confirming MC/USDOT numbers is a simple yet effective strategy.
  • Enhance Technological Security: Incorporate additional layers of security into the company’s technological infrastructure to guard against fraud, especially double brokering and cyberattacks.
  • Utilize Solutions like Trucker Tools: Employing digital freight matching solutions, such as Trucker Tools, helps vet carriers and avoids public load boards, ensuring collaboration with a prequalified network of carriers.
  • Strengthen Carrier Relationships: Building robust relationships with carrier partners, supply chain companies, and law enforcement agencies fosters a collaborative environment, enhancing the industry’s ability to protect against fraud.

Building Relationships through Technology: Contrary to the notion that relationships are solely strengthened through in-person interactions, technology plays a pivotal role. For carriers and brokers alike, utilizing tools like Trucker Tools’ app fosters connectivity, allowing for continued collaboration even after the initial interaction. This includes booking loads through features like “Book it Now” to strengthen partnerships beyond merely pursuing the lowest rates.

In conclusion, combating cargo fraud necessitates a multi-faceted approach involving technological advancements, stringent verification processes, and the cultivation of strong relationships throughout the industry.

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With over 20+ years in the trucking insurance industry Cook Insurance Group combines national reach with local service to address the needs of large fleet, small fleet, single owner and tow trucking operations, and to charter bus lines. We ONLY serve the Trucking industry, providing the best trucking insurance. Let our friendly, bi-lingual staff help you find the right insurance protection at the right cost.

Cook Insurance Group is dedicated to meeting the needs of both small and large fleet trucking companies. Our reps handle every aspect of your program, ensuring you have the best trucking insurance plan for your specific needs. We work closely with you to manage your plan on an ongoing basis.

At Cook Insurance Group, we provide immediate certificate and ID card insurance, including 24/7 certificate availability. We leverage our client portal which allows you to access and issue certificates, check claim status and view policies. Cook Insurance Group is prompt and reliable, including 24-hr claims reporting. (Physical Damage and Motor Truck Cargo). We also provide educational seminars for management and drivers of companies.

At Cook Insurance Group we have licensed risk managers available to assist you with CSA scores and driver training. We provide border risk coverage (NAFTA) and mid-year loss run reviews.

Choose Cook Insurance Group for all of your trucking insurance needs whether you are located in Texas, Arizona or Arkansas.

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