The Rise of Fraudulent Carriers: A Growing Threat to Freight Brokers

Originally posted on Ping Identity on August 7, 2024.

Strategic theft continues to threaten the supply chain, with reported loss values exceeding $34 M in Q2 of 2024 alone. Specifically, the rise of fraudulent carriers in the freight market is posing significant challenges for freight brokers. This rampant increase is costing brokers lost revenue and damaged reputations. 

Fraudulent carriers often use fake credentials and stolen identities to secure loads, only to disappear with the goods, leaving brokers to deal with the fallout. As for carriers, they risk stolen identities which can result in personal and professional financial losses and reputational damage. This trend also erodes trust within the industry, making it harder for brokers to confidently engage with new carriers. For carriers, identity theft can limit their ability to secure the loads they need to keep their business moving. 

Strengthening Security Measures

As a first line of defense, brokers are now investing in more vetting processes and advanced technology to protect themselves and the carriers they work with from these costly scams. By integrating technology tools to help vet potential carriers, brokers can drastically reduce the risk of fraud.

Truckstop, a leading technology platform in the freight industry, has recognized this challenge and is committed to reinforcing trust and security for its users. Truckstop has doubled down on customer data protection with Ping Identity, a leader in identity management that ensures credentials are verified in a single place to instantly and reliably authenticate a user. Ping Identity’s technology enhances Truckstop’s trusted brand across all products, including: the Truckstop Load Board, Registry Monitoring Insurance Services (RMIS), Truckstop Factoring, and FreightFriend to further surpass competitors in terms of security and fraud expertise.  

Proactively Adapting to Evolving Threats with Real-Time Solutions

Truckstop chose to implement Ping because attacks are becoming more frequent and sophisticated. It was critical to partner with a platform that allows the ability to assess risk in real time, adapt, and respond. This not only helps secure Truckstop products, but also works to minimize brokers’ vulnerability across the supply chain. 

Ping’s identity verification process is a crucial first step in identifying fraudulent behavior. Brokers can enhance security measures by incorporating multi-factor authentication (MFA), real-time user behavioral risk assessments, and biometric verification. These technologies provide an additional layer of protection, ensuring only ID verified carriers can access and operate within the system. 

Ping has been particularly powerful in RMIS, Truckstop’s carrier onboarding and monitoring tool for brokers. Identity verification minimizes fraud risk by providing brokers with a simple visual indicator—a badge—showing whether a carrier has been verified. Verification takes just a few minutes with a click of a button, offering peace of mind and reducing fraud for Truckstop’s brokers. 

Truckstop’s Commitment to Security

Truckstop stands at the forefront of this battle against fraud, continuously enhancing its security protocols to help protect brokers and carriers from the significant impacts of bad actors trying to intercept a load or payment. By partnering with Ping Identity, Truckstop has implemented a robust system that includes advanced authentication methods and real-time risk detection. This comprehensive approach allows Truckstop to offer unparalleled security while ensuring a seamless user experience.

Why Truckstop Leads the Way

As the threat of fraudulent carriers continues to rise, freight brokers must prioritize the adoption of advanced vetting tools and identity verification systems. Truckstop’s proactive approach to security serves as a benchmark for the industry, demonstrating that with the right technology and commitment, it is possible to create a safer, more trustworthy marketplace for all stakeholders.

Truckstop’s ongoing commitment to security ensures that it remains a trusted platform for brokers, shippers, and carriers. By continuously innovating and utilizing the latest security technologies, Truckstop not only protects its users from fraud but also enhances the overall efficiency and reliability of the freight industry.