Brokers vs. Fraudsters: The Data War One Company is Winning

In 2024, the freight industry faced an unprecedented surge in fraudulent activities, with losses estimated between $500 million and $700 million. The Transportation Intermediaries Association (TIA) reported that, between January and August 2024, their Watchdog platform received 974 fraud reports, including 319 cases of unlawful brokering and 163 instances of identity theft.

These fraudulent activities have a staggering financial impact, posing a severe threat to organizations. The average gross cost of fraud reported by respondents was $402,344.47, with an approximate per-load cost of $40,760.17. 

And those are just the cases that were reported. The real number? Much higher.

In response to these escalating threats, Highway has intensified its efforts to protect brokers and carriers. In 2024, Highway’s proactive fraud prevention measures resulted in:

• Blocking 914,719 fraudulent inbound emails, preventing critical business interruptions.
• 9,501 reported identity alerts, flagging issues such as identity theft, double brokering, theft, and unauthorized access.
• Stopped 9,829 carrier users from 75 countries from gaining access to Highway.
• 109,672 FMCSA contact changes detected and monitored, safeguarding against unauthorized updates.

As we move into 2025, the fight against freight fraud remains a critical concern. Highway is dedicated to leading this charge, providing brokers and carriers with the tools and support they need to navigate an increasingly complex and challenging landscape.

For a more in-depth discussion on tackling freight fraud, you can watch this interview with Michael Caney, Chief Commercial Officer at Highway.

“Every fraudulent load stopped is a win. But our goal isn’t just stopping fraud—it’s eliminating bad actors from the system entirely,” Caney says.

What’s Fueling Freight Fraud?

Fraudsters are getting smarter. Here’s what’s making their job easier:

1. Regulatory Gaps – The FMCSA’s systems are shockingly easy to manipulate, allowing scammers to hijack MC numbers or make fake carriers look legit.
2. Tech-Savvy Criminals – Bad actors are using AI-powered phishing attacks to impersonate brokers and carriers more convincingly than ever.
3. Market Volatility – Freight downturns mean more desperate brokers and carriers, which leads to higher risk-taking and lower vetting standards.
4.  High-Value Loads = Higher Incentive for Theft – When prices for consumer goods spike, so does cargo theft.

Fraud Prevention Strategies for Brokers in 2025

✅ Stop Relying on Old-School Fraud Prevention – Fraud is evolving, and so should your approach. If your fraud tools are only reactive, you’re already behind.

✅ Use Advanced Identity Verification – Carriers with fake documents and stolen credentials shouldn’t be getting through. Highway’s system stops them at the gate.

✅ Monitor FMCSA Changes Closely – Fraudsters love sneaky FMCSA record changes. If you’re not tracking them in real time, you’re leaving the door wide open.

✅ Build Stronger Carrier Relationships – The more trusted, verified carriers you work with, the less risk you expose your business to.

✅ Partner with Freight Tech Leaders – Brokers using tech like Highway’s Carrier Identity® Engine are catching fraud before it hits their bottom line.

Freight fraud is evolving, but so are the tools to fight it. Highway is committed to giving brokers and carriers the data, insights, and technology they need to stay ahead of bad actors.

Want to learn more about how Highway’s Carrier Identity® Engine is reshaping fraud prevention? See how you can protect your business in 2025 and beyond.