Podcast: Understanding and Combating Fraud with Shawn Rasmor of Truckstop

Fraud in the freight industry is a growing concern, affecting businesses of all sizes. As bad actors become more sophisticated, companies must adapt and adopt advanced strategies to protect their operations. 

In this episode of Freight Nation: A Trucking Podcast, host Brent Hutto is joined by Shawn Rasmor, Principal Product Manager at Truckstop. They discuss the escalating threat of freight fraud in the trucking industry, emphasizing the need for technology and human intelligence to combat it effectively. They highlight strategies for early detection, prevention, and collaboration among industry players to safeguard businesses and build trust in the market.

Understanding the Nature of Freight Fraud

The freight industry is increasingly under attack from fraudsters who are quick to adopt new technologies, such as artificial intelligence, to mask their identities and exploit vulnerabilities in the system. He notes, “Companies are slow to adopt these efficiencies. The bad actors are not; they’re out there, they’re adopting technologies.” This surge in fraudulent activities, particularly in the fall and winter of 2022, has created an urgent need for businesses to be vigilant and proactive in protecting themselves.

Freight fraud can take many forms, including double-brokering, stolen loads, and compromised identities. These activities not only result in financial losses but can also damage a company’s reputation. Rasmor shares that Truckstop’s assurance team has verified numerous reports of fraud, underscoring the importance of having robust processes in place to detect and prevent these schemes. The freight market saw a significant increase in fraud incidents in late 2022, with signals emerging that were different from anything seen before. This prompted Truckstop to immediately implement changes to better protect their users.

How Truckstop Leverages Technology to Combating Fraud

Technology plays a role in identifying and mitigating fraud in the freight industry. Truckstop has developed a range of tools and systems designed to detect fraudulent activities and protect its users. One of the standout tools mentioned by Rasmor is Risk Factors, which helps users identify risk signals even when they are not logged into the Truckstop platform. This is part of a broader suite of technologies that monitor for suspicious activities, track compromised identities, and provide real-time alerts to users.

Rasmor explains that Truckstop’s approach to combating fraud involves continuous surveillance and the use of historical data to identify patterns of fraudulent behavior. He states, “We have a team that is providing surveillance. We have a lot of technology that’s watching for signals. This is going back decades. We have so much information.” By leveraging decades of data, Truckstop is able to detect when bad actors attempt to reuse information, allowing them to act quickly to prevent fraud. The platform also maintains a list of compromised identities and takes swift action when notified of suspicious activities, including removing bad actors from the load board.

Best Practices: Proactive Measures for Freight Fraud Prevention

In addition to technology, Rasmor emphasizes the importance of having strong policies and protocols in place to prevent fraud. Businesses must be proactive in identifying and mitigating risks, whether through regular audits, employee training, or the implementation of advanced fraud detection tools. Rasmor highlights that fraudsters often look for “unlocked doors” or “dark alleys” where they can hide their activities, making it vital for companies to remain vigilant and ensure all potential entry points are secured.

Rasmor also discusses the human element of fraud prevention, noting that economic pressures can lead to lapses in judgment, such as skipping essential checks and balances. During challenging times, it’s easy to be tempted by attractive rates without thoroughly vetting the information, which can result in falling victim to fraud. He stresses the importance of maintaining rigorous standards, even when under pressure, to avoid costly mistakes.

Freight fraud is a serious threat that requires a multifaceted approach to combat effectively. Shawn Rasmor of Truckstop notes that combining advanced technology, vigilant monitoring, and proactive measures is key to protecting businesses from fraudulent activities. By understanding the nature of the threat, leveraging the right tools, and maintaining strong protocols, companies can safeguard their operations and maintain their integrity in the face of rising fraud risks. For those in the freight industry, staying informed and prepared is not just an option—it’s a necessity.

To learn more tips from Jessica, tune into this episode of Freight Nation: A Trucking Podcast on Apple, Spotify, or your favorite podcast platform.