Year over year fraudulent activity targeting freight brokers, carriers and shippers increased 27% in 2024, according to carrier identity and fraud prevention solutions provider Highway.
While that activity is expected to only increase, the tactics are changing, according to Highway’s Freight Fraud Index.
“Bad actors treat freight fraud like a full-time job, and they’ve expanded their playbook,” said Highway Vice President of Customer Risk Management Michael Grace.
The top attack vectors in 2024 included identity theft (fraudsters impersonating legitimate carriers to gain access to broker loads); double brokering (illegitimate carrier transfers leading to non-payment and cargo loss); change in ownership (scammers buying old MCs from previously legitimate companies); and FMCSA contact manipulation (unauthorized email and phone changes used to hijack legitimate carrier accounts).
The three fraud vectors that spiked in Q1 2025 were sold MCs and ownership changes, compromised inboxes and email phishing and phone spoofing, and fraudulent caller ID. Phishing attempts increased 27% in February and another 26% in March.
“Ownership changes are usually the toughest to detect, especially when there are no recorded changes,” Grace said, and “emailing rate confirmations is no longer safe.”
Q1 fraud trends included 352,134 fraudulent inbound emails, 406 unauthorized FMCSA contact changes, 30,921 fraudulent and spoofed phone calls, and 1,190 fraud-related identity alerts reported.
Identity theft is leading the charge as freight fraud increases. The index shows that impersonation attempts rose monthly in the first quarter from 352 in January to 452 in March.
The report said bad actors are posing as legitimate carriers using stolen credentials; intercepting rate cons and tenders through compromised email accounts; using spoofed numbers and hijacked inboxes to gain trust; and hauling loads under false pretenses – then vanishing.
Grace said he foresees fraud continuing to evolve, especially in spoofed communications by email and phone, and a surge in load theft attempts heading into the spring and summer produce seasons.
The Transportation Intermediaries Association reported that cargo theft continues to be the most financially damaging type of fraud, with the National Insurance Crime Bureau estimating total losses in cargo theft at around $35 billion annually. There's been a 1,500% increase in reported incidents since 2021.
What to watch for in Q2 includes an increase in spoofed communications and a surge in load theft attempts in which fraudsters exploit weaknesses in verification processes to steal shipments using a combination of tactics.
Proactive measures and technology adoption is essential for staying ahead of fraud trends, Grace said.
“As the tools for fraud become more sophisticated, so must our methods of prevention and response,” he said. “If brokers aren’t adapting their defenses, they’re exposing their customers, carriers and freight to unnecessary risk. It’s frustrating to see stolen loads that could have been avoided with the right protection in place.”
