RISKY BUSINESS: Inside the Freight Fraud Surge
behavioral patterns, and flag anomalies,” Dragon says. “Advances in technology have inadvertently empowered fraudsters,” adds Jenn Mead, founder and CEO of S-2international. “Fake insurance certificates, falsified authority documents, and other convincing forgeries make it increasingly difficult to distinguish legitimate companies from fraudulent ones. This heightens the need for careful vetting and due diligence at every stage.” Despite the complexity of the threat, fighting back is not insurmountable. Effective fraud and theft mitigation is possible, through a mix of technology, process discipline, collaboration, and vigilance. As a starting point, proper and thorough carrier vetting and strict financial controls are essential to deterring fraud. Technology platforms
such as FreightValidate, Carrier 411, and Highway have become valuable tools for verifying critical data and identifying red flags. Carrier vetting is not a one-time event, however. Dormant carriers that suddenly reactivate, mismatched VIN and insurance data, suspicious contact information changes, and offers that are “too good to be true” all warrant scrutiny, according to Clonch.
At Ryder, he explained, procedures are standardized and layered. “We lean heavily on technology to automate checks so our team can focus on strategic calls,” Clonch said. Phone communication is prioritized over email, and only verified contacts are engaged. Evaluating a carrier’s financial health is also part of the process, since distressed operators may be more vulnerable to fraudulent activity. For Highway, combating fraud starts with authenticating and verifying motor carriers in ways similar to financial institutions. “The goal is to eliminate fraud by requiring carriers to prove who they are and what they can do—while also reducing friction for brokers and carriers,” explained Michael Caney, the platform’s chief commercial officer. Highway’s system automates routine checks with custom rules, freeing staff to focus on exceptions.
2025 SUPPLY CHAIN RISK TRENDS 3,594 Theft Incident Reports Top Stolen Commodity Types Top 3 Targeted States California | Texas | Illinois
1
Food and Beverage
Represent 51.9% of all theft in 2025
Top Targeted Location Types
2
Warehouse/ Distribution Center
3
Household Goods
Estimated Total Loss Value $ 724,978,757
$
$
$
Truck Stop
Source: Verisk CargoNet
32 Inbound Logistics • February 2026
Powered by FlippingBook