The seven precautions you should take to protect your trucking business from fraud

The Seven Precautions You Should Take To Protect Your Trucking Business From Fraud

Protect Your Trucking Business From Fraud

Key points in this article:

  • Reducing fraud risks within the transportation industry
  • Emphasizing the importance of transparency and accountability
  • Cultivating a culture centered around ethics and compliance

In the transportation sector, fraud is always a possibility. Taking precautions ensures that the risk of fraud is minimized and the industry can operate with greater transparency and accountability, benefiting both businesses and consumers. 

This can be achieved through implementing robust internal controls, conducting regular audits, and utilizing technology to detect and prevent fraudulent activities.

These precautions safeguard the company’s assets, enhance its reputation, and increase stakeholders’ trust. 

Maintaining a culture of ethics and compliance is essential to ensure these measures’ effectiveness.  Also promotes transparency and accountability within the organization, which in turn fosters a positive work environment. By prioritizing these values, companies can also attract and retain top talent that shares these principles.

Precautions Companies Should Take

There are many precautions that companies can take to ensure that their actions align with these values, such as implementing ethical guidelines and conducting regular audits to assess their impact on society and the environment.

Other precautions companies should take are:
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    If the Rate is too Good to be true

    The first safety measure is to detect if the broker offers a rate that seems too good to be true, which is often a red flag for potential fraud or scams. Therefore, dispatchers should thoroughly research and vet any offers or deals before committing to them.

    One good example would be moving a load of watermelons. Watermelons are an exempt commodity for which you can not file a claim on a freight broker’s bond. Fraudsters would try to move such loads offering a hefty ticket price. After they get paid by a shipper, they would not pay a carrier.

    And while the season lasts, the scheme would work until that fraudulent broker cancels the bond and goes out of business, in other words, disappears.

    Next year, they can emerge under a different name and motor carrier authority to repeat the same fraud.

    Implementing strict vetting protocols can help trucking companies avoid such chameleon brokers.

    Transporting watermelons

    Checking Rate Confirmation

    Secondly, you should check the rate confirmation thoroughly for any indications of fraud. By altering a Rate Confirmation with fictitious information, some dishonest brokers may attempt to pass themselves off as reputable institutions. 

    Verifying the broker’s legitimacy and confirming their identity before engaging in any transactions is essential

    Researching the broker’s reputation and reading reviews from other clients is recommended to ensure their trustworthiness.

    DAT Load Board offers such tools through their load board subscription. Using a legitimate TQL Rate Confirmation as an example, one may modify the load number, rate, and broker contact details.

    We recommend you call the broker’s corporate phone to ask about the load if you detect mismatched typefaces or email addresses. Often, the discrepancy in the email would be a red flag.

    For instance, if you see something modified in the email address, such as instead of, that should raise a red flag.

    Verifying the Bill of Lading (BOL) legitimacy

    The third precaution is verifying that the Bill of Lading accurately reflects your carrier and broker names.

    This is important because any fraudulent behavior on the BOL might mean that the load is double-brokered, creating delays in pay or non-payment.

    It is crucial to ensure that all the information on the BOL is correct and matches the actual rate confirmation that the carrier received from the broker.

    Verifying the Broker or Shipper Legitimacy

    Just as brokers check carriers’ safety scores on SAFER and performance scores on Carrier411, trucking companies should conduct thorough research on brokers before doing business with them.

    This can include checking their reputation, reading reviews from previous clients, and verifying their licensing and insurance.

    Checking a broker’s credit score on a factoring website will help avoid bad or non-paying brokers.

    Conduct Background checks on employee

    The fifth precaution you should take to protect your business from fraud is to conduct thorough background checks on potential employees or business partners before entering into any agreements or partnerships with them.

    This can help you avoid being involved with individuals, who have a history of fraudulent behavior or other red flags.

    Additionally, it is crucial to establish clear policies and procedures for handling sensitive information and financial transactions within your company to minimize the risk of internal fraud.

    Regularly reviewing and updating these policies can also help ensure that they remain effective in preventing fraudulent activity.

    With so many remote workers and outsourced labor, security policies are more important than ever.

    dispatcher training

    Conduct Regular Training Sessions for Employees

    The sixth precaution is to conduct regular training sessions for employees to educate them on the latest fraud prevention techniques and to raise awareness about the consequences of fraudulent behavior.

    It is important to establish clear policies for trucking company employees to follow in order to avoid security breaches or misconduct.

    Have a Software Solution That Detects Fraud

    The seventh precaution is to provide a software solution that allows for easy and efficient reporting of any suspicious activity. This can also aid in the prevention of security breaches and misconduct.

    The software solution should have features that enable the monitoring of user activity, detection of anomalies, and generation of alerts.

    Additionally, regular audits and reviews of the reported activities can help identify potential security threats and improve the overall security posture.


    Remember, prevention is always better than cure, and by taking proactive steps to protect against fraud, trucking companies can safeguard their reputation, financial well-being, and long-term success in the industry.

    By staying vigilant, prioritizing fraud prevention, and implementing safeguards, your trucking company can protect itself against the ever-evolving threat of fraud.

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    By staying vigilant, prioritizing fraud prevention, and implementing safeguards, your trucking company can protect itself against the ever-evolving threat of fraud.

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