Fraudulent activity targeting motor carriers continues to escalate nationwide. In 2024 alone, freight fraud losses surpassed $455 million, fueled by increasingly sophisticated digital tactics.
Bad actors are using stolen or fake credentials. This includes USDOT and MC numbers to intercept cargo, redirect payments, and commit financial theft. The schemes are getting more advanced, and many legitimate carriers are finding themselves unknowingly caught in the middle — facing not only operational disruption, but potential uninsured losses and regulatory complications.
Common Motor Carrier Fraud Schemes Impacting Insureds
Identity Theft and USDOT/MC Number Spoofing
Scammers “clone” legitimate carriers by copying USDOT/MC numbers, insurance certificates, and even email domains. They book loads they never intend to deliver, secure fuel advances, and fraudulently obtain certificates of insurance (COIs) to move freight. We recently saw an insured impacted by multiple fraudulent COIs.
Double Brokering Fraud
A fraudulent entity accepts a load and illegally rebrokers it without authorization — collecting payment while leaving the actual carrier unpaid.
Chameleon Carriers
Unsafe or out-of-service operators register new USDOT numbers to hide past violations and safety issues.
Phishing and Fake FMCSA Portals
Fraudsters send emails that mimic official sources (such as @dot.gov) or create fake FMCSA portals to steal login credentials, PINs, and payment information.
SAP (Substance Abuse Professional) Fraud
Drivers are tricked into sharing CDL numbers under the pretense of clearing violations. Fraudsters then enter false drug/alcohol violations and demand payment to remove them.
How Motor Carriers Can Protect Their Business
Monitor Your SAFER Account Regularly
All motor carriers should regularly review their SAFER (Safety and Fitness Electronic Records) System profile to prevent identity theft and unauthorized changes.
Fraudsters have been altering:
- Contact information
- Email addresses
- Operating authority details
These changes can lead to serious compliance issues, financial loss, and operational disruption.
Take these steps immediately:
✔ Log into your SAFER account and verify all company information.
✔ Confirm contact emails, phone numbers, and addresses are accurate.
✔ Ensure only trusted individuals have account access.
✔ Monitor regularly for unexpected updates or notifications.
Proactive oversight is one of the most effective ways to protect companies from DOT-related fraud and theft.
If you notice suspicious activity or unauthorized changes, act immediately and report the issue through the appropriate FMCSA channels.
Additional Risk Management Best Practices
Beyond monitoring your SAFER account, motor carriers should strengthen internal controls to reduce exposure. Here are a few best practices:
- Implement multi-factor authentication on all company logins, including FMCSA portals and email accounts, to prevent unauthorized access.
- Establish formal certificate of insurance (COI) verification procedures so fraudulent documents are identified before loads are released.
- Carefully vet brokers and shippers, confirming operating authority and contact information through trusted sources rather than relying solely on emailed documents.
- Train staff to recognize phishing attempts and suspicious communications, since many schemes begin with a single deceptive email.
- Review your insurance coverage annually to understand how cargo, cyber, and crime policies may respond to fraud-related incidents and where gaps could exist.
How Fraud Impacts Your Insurance Program
Fraud can directly affect how your insurance program responds. Some fraud-related losses may not be covered if they do not meet specific coverage triggers or if they fall within policy exclusions. Even when coverage applies, sub-limits and deductibles may significantly reduce recovery. Crime and cyber endorsements are increasingly important, as traditional cargo policies may not address social engineering or payment diversion schemes. Fraudulent COIs also create exposure if a loss reveals there was no valid coverage in place. Reviewing your policy language annually helps you understand how your program would respond before a claim occurs.
Work With an Insurance Advisor Who Understands Transportation Risk
Motor carrier fraud is evolving quickly, and standard insurance programs are not always built with these exposures in mind. Working with an insurance advisor who understands transportation risk helps ensure your cargo, auto, crime, and cyber coverages align with how your operation runs. An experienced advisor can help you evaluate coverage triggers, endorsements, exclusions, and limits, while identifying potential gaps before they turn into costly surprises.
Fraud prevention is part operational discipline and part insurance strategy. A thoughtful review today can help protect your authority, your reputation, and your bottom line tomorrow.
In today’s trucking environment, fraud prevention is no longer optional — it’s operational risk management.
If you have questions about your exposure or would like to review your coverage, we’re here to help.
