THE ALARMING SURGE OF FREIGHT FRAUD & HOW TO COMBAT IT
Freight fraud is up 13% YoY. Learn more about the current state of freight fraud, different fraud tactics, how to defend against fraud, and how ITS combines technology, training, and processes to protect shippers.
“It’s not enough to trust; every detail needs to be verified. Only pre-approved contacts get access, adding a layer of security that cuts down on risk. And if a carrier sits idle for a short period of time, re-vetting kicks in before they’re cleared to move another load. This isn’t just policy—it’s a fundamental step that ensures reliability and keeps the network secure, no matter how fast things move.”
– Adam Angle, Senior Vice President of Capacity and Assets
FRAUD PREVENTION STRATEGIES
vetting of new and dormant carriers. Only verified, pre-approved contacts receive sensitive shipment information,
further reducing risks.
DIGITAL + PHYSICAL
REGISTRATION
Carriers must have a valid MC or DOT
number, a clear operational history,
appropriate insurance levels, and maintain a clear physical or digital footprint, or an ELD connection through Highway.
DORMANT
CARRIER CHECKS
All inactive carriers undergo
additional vetting, including the verification of recent operational activity and photo documentation of the carrier and driver.
IDENTITY + COMPLIANCE ALERTS
Active monitoring of carriers for any identity alerts, including reports of fraud, changes in contact details, or suspicious activity flagged by Highway and other vetting systems.
OPERATIONAL
INSIGHTS
Highway’s technology provides ITS with 29 different insights into carriers, allowing ITS to detect red flags like fraudulent factoring companies, a virtual office address, or close proximity to brokerages.
INSURANCE +
CLASSIFICATION
REQUIREMENTS
Carriers are required to maintain $1 million in auto insurance, $100,000 in cargo insurance, and additional coverage for specific shipment types (e.g., temperature-controlled, drayage).
REGULAR MONITORING
+ REVERIFICATION
Carriers are constantly reviewed through Highway and CargoNet to ensure ongoing compliance and safety.