Despite advancements in technology and regulatory measures, in 2024 trucking fraud continues to present challenges that demand attention and innovative solutions. The Transportation Intermediaries Association (TIA) estimate a loss of $500 million to $700 million to fraud victims in the supply chain industry.

Trucking fraud is not new, but it has evolved. Despite advancements in security measures, 2024 sees trucking fraud encompassing falsified documents, cargo theft, identity theft, bad actors masquerading as motor carriers, as brokers and even as shippers, and in some cases, and sometimes digital systems manipulation. Fraudsters exploit the industry’s complexity, targeting various stakeholders and stages of transportation.

Recognizing the need for policy change, our CEO, Jeff Tucker, testified earlier this year before Congress’ Committee on Transportation & Infrastructure. As the only freight industry witness, he helped to shed light on the need for policy changes, aiming to revolutionize the freight industry for decades ahead.

His testimony requested that the Federal Motor Carrier Safety Administration (FMCSA) focus on fraud and critical safety issues. Using data, he sought to shatter the myth of a truck driver shortage, highlighting a surge of 1 million drivers in the past decade and calling for a more nuanced dialogue around drivers counts. He urged Congress to insist that states adopt one air quality standard, and not a patchwork of 50-plus, and urged expansion of the US-Mexico border capabilities.

What else can be done about fraud?

With or without policy change, a multi-pronged approach is necessary to combat fraud:

• Embrace Technology: Blockchain offers a decentralized and immutable ledger system that enhances transparency and traceability across the supply chain. By leveraging blockchain technology, stakeholders can securely record and verify transactions, reducing the risk of fraudulent activities such as document tampering and cargo theft.
• Strengthen Cybersecurity: As digitalization accelerates within the trucking industry, investing in robust cybersecurity infrastructure is imperative. Carriers, brokers, and logistics providers must implement advanced encryption protocols, multi-factor authentication, and intrusion detection systems to safeguard sensitive data and mitigate the risk of cyberattacks.
• Collaborate: Combatting trucking fraud requires collaboration among government agencies, law enforcement authorities, industry associations, and technology providers. Sharing intelligence, best practices, and resources can strengthen defenses against fraudulent activities and facilitate swift response to emerging threats.
• Educate: Building awareness among stakeholders about the various forms of trucking fraud and imparting training on fraud detection and prevention strategies are crucial steps in fostering a culture of vigilance within the industry. Equipping drivers, dispatchers, and administrative staff with the knowledge and skills to identify suspicious behavior can help thwart fraudulent attempts effectively.

Tucker’s Approach

At Tucker, we believe we can play a key role in the battle against trucking fraud. By continually focusing on the ongoing evolution and conversation around fraud, Tucker seeks to remain at the forefront of these preventative methods and to pass that knowledge onto our customers. As a company we focus on the following:

• Company design: Tucker is intentionally engineered to operate differently from most brokers, since we deal mainly with motor carrier fleets, not the owner-operator. This design provides many values, including: knowing our carrier friends; obtaining commitments; providing us the ability to cover lanes, and not just transactionally cover loads; allowing us to invest in, and grow long-standing relationships with fleets and their operations and ownership, and providing a more steady, reliable service to our customers, to name a few.
• Carrier Selection: Tucker leads the industry in carrier selection expertise. Our CEO previously chaired the committee that publishes the only trade association endorsed “Carrier Selection Framework.” We collaborate with the best minds in safety, security, and risk management within the industry to ensure we’re providing services and carriers who protect your cargo and your brand.
• Forensic Dispatch: Once a carrier meets our meticulous expectations, our team doesn’t stop there. Our well-trained personnel continue to reinforce load requirements, verify SOCs, relay safety and security best practices, and evaluate timeliness to ensure Tucker arranges transportation when and where it is promised, each time.
• Industry leadership and freight security: Tucker realizes how important it is to keep our finger on the pulse of our industry and yours to ensure we have a greater understanding of your goals and the requirements of handling your freight. Tucker is an active member of many industry safety groups including the Transportation and Logistics Steering Committee of BSMA, HPCLC’s Service Provider Council, Pharmaceutical Cargo Security Coalition (PCSC), Transportation Intermediaries Association (TIA) and more.

Moving Forward

In April of 2024, federal regulators announced that they are creating a team specifically to deal with trucking fraud. In response to years of complaints from truckers, brokers, and insurance companies, the FMCSA’s Registration Fraud team will focus on assisting victims of fraud and look for ways to prevent it. This new team is taking several immediate steps including tightening IT security to prevent scammers from breaking into their registration system.

In the landscape of global logistics, the battle against trucking fraud is ongoing. While technological innovations and collaborative initiatives offer promising avenues for combating fraudulent activities, the ever-evolving nature of fraud demands continuous adaptation from all stakeholders. By embracing innovation, fostering collaboration, and prioritizing vigilance, fraud risks can be mitigated to ensure supply chain integrity in 2024 and beyond.

Contact us today, and let’s discuss how Tucker can assist you with all your shipping needs.