Every logistics professional dreads that moment — the call about a missing shipment, the carrier who suddenly can’t be reached, or the suspicious documentation that raises red flags. Freight fraud has evolved far beyond simple cargo theft into a complex web of scams that keep operations managers up at night.
From small brokerages to major 3PLs, no one in the industry is immune to these increasingly sophisticated attacks.
Here at MercuryGate, we’ve lived through these challenges alongside our customers. Checking carrier credentials and tracking shipments shouldn’t feel like a game of chance. That’s why we partner with technology solution providers like Truckstop.com. Combining our advanced TMS capabilities with their trusted carrier network, we create an industry-leading safety net. Together, we help logistics teams catch bad actors before they strike and keep legitimate freight moving.
No more choosing between security and speed. Our integrated solution lets dispatchers and brokers book loads confidently, knowing technology that understands the real demands of modern logistics is turning the tide in their favor.
From Loading Dock to Lock-Up: The Wild World of Freight Fraud
Moving cargo means moving money — lots of it. Unfortunately, criminals know this. Modern freight fraud schemes range from old-school cargo heists to sophisticated cyber scams targeting shippers, brokers, and carriers. Picture stolen solar panels, vanishing electronics, and entire truckloads disappearing into thin air. Add fake companies, phony pickups, and digital deception to the mix, and you’ve got a perfect storm threatening the transportation industry.
Money Talks: Counting the Costly Cargo Capers
In just eight months of 2024, the Transportation Intermediaries Association’s Watchdog logged 974 freight fraud reports – a slap-in-the-face reminder that criminals never rest in the trucking industry. The scope of this criminal enterprise becomes even more evident through CargoNet’s cargo theft data, which reported nearly 1,700 theft incidents and losses exceeding $100 million by mid-2024.
Companies hemorrhage an average of $402,344.47 per fraud incident. Each compromised load costs an average of $40,760.17. Some unlucky businesses have watched over $1 million evaporate. The worst part? Freight fraud has been increasing for a while. Incidents skyrocketed 600% between November 2022 and March 2023.
Criminal networks grow more sophisticated each year, wielding advanced technology to execute their schemes. Double brokering scams run rampant — shady operators re-broker loads without shipper knowledge, leading to payment chaos and vanishing deliveries. Hackers target Federal Motor Carrier Safety Administration accounts, stealing carrier identities to swipe cargo. And so on.
Hot Wheels & High Stakes: Who’s Getting Hit Hardest?
Truckload freight stands out as the prime target, with 98% of TIA survey respondents reporting the most vulnerabilities in this sector. Criminals love high-value goods like electronics and solar panels — items easy to steal and sell. Mid-sized logistics companies often take the hardest hits, lacking the fortress-level security of industry giants.
The rise of global trade and nearshoring, especially manufacturing shifts to Mexico, creates new weak points throughout supply chains. Fraudsters exploit these gaps through various schemes:
- Cargo theft.
- Financial scams.
- Identity theft.
- Internal betrayals.
Company insiders sometimes turn into accomplices while cyber attackers hunt for sensitive data. Phishing emails trick employees into revealing critical information, while unauthorized “carriers” simply drive off with valuable loads. Some criminals get creative, stealing portions of cargo bit by bit, hoping nobody notices until it’s too late.
The Aftershocks: Freight Fraud Hits the Bottom Line
Beyond the average losses of $402,344.47 per company, freight fraud unleashes chaos throughout operations. Companies burn valuable time and money on carrier vetting, advanced technologies, and industry collaboration efforts. Monitoring carrier status and compliance records demands constant attention, with teams spending entire quarterly days just fighting fraud. All while insurance premiums shoot through the roof.
The operational damage cuts deep. Stolen or diverted shipments create delivery delays and unfulfilled orders, grinding efficiency to a halt. When deliveries vanish, customer trust crashes. Staff members shoulder extra work investigating incidents while trying to keep regular operations running. Legal headaches and regulatory scrutiny pile on additional pressure.
Cybersecurity threats loom large — phishing scams and data breaches compromise sensitive information, leading to even more financial bleeding. Companies face tough choices between investing in prevention and maintaining competitive pricing. At the same time, fraudsters keep innovating new ways to exploit the system. The challenge demands constant vigilance. Yesterday’s security measures might not stop tomorrow’s schemes.
When TMS Meets Trust: The MercuryGate-Truckstop.com Tag Team Against Freight Fraud
At MercuryGate, we know securing freight transactions is paramount. That’s why we combine our industry-leading TMS with Truckstop.com’s powerful Book It Now digital freight matching. For over 25 years, Truckstop built trusted carrier relationships in the spot market while we’ve delivered comprehensive freight management solutions to shippers, 3PLs, brokers, and carriers worldwide. Together, we’re fighting back against the freight fraud epidemic.
Digital Handshakes: Where Trust Meets Technology
Our integration with Truckstop creates multiple layers of protection. Carriers and owner-operators gain access to trusted marketplace partners they already know. At the same time, brokers eliminate time-consuming phone calls and manual negotiations that often lead to vulnerabilities. The system provides complete visibility across the entire freight lifecycle — from initial booking through final delivery. The platform’s real-time monitoring catches discrepancies instantly, and regular security audits maintain the highest standards of legitimacy.
Your Security Arsenal: Tools That Never Sleep
Your TMS stands as your first line of defense in today’s complex freight world. We supercharged MercuryGate’s security muscle with partner solutions like Truckstop’s Book It Now technology — turning routine freight matching into a fortress of protection.
Every click or tap now carries the weight of advanced security protocols while keeping the process lightning-fast. We streamlined security for logistics professionals, from boutique 3PLs to major freight forwarders juggling multiple loads, carriers, and deadlines without sacrificing speed.
All while the predictive analytics engine spots suspicious patterns that might slip past human eyes. Your operations team gets real-time visibility into every aspect of performance, cost, and compliance — because you can’t protect what you can’t see in freight.
Real Results, Real Stories
Between January and July 2024, Truckstop.com’s fraud prevention system blocked 8,605 potentially fraudulent attempts to create RMIS accounts and caught 7,798 carriers attempting to use mismatched documentation. Meanwhile, the load board’s sophisticated security protocols thwarted an additional 5,086 suspicious access attempts.
Strategies for Strengthening Freight Fraud Defense
- Smart Document Verification: Meet your new best friend: healthy skepticism. Train your team to spot red flags in bills of lading, proof of delivery, and insurance certificates. Look for mismatched dates, unusual routing patterns, or carriers with suspiciously perfect documentation.
- Team-Based Detection Networks: Your employees stand at the frontlines of fraud prevention. Build a culture where warehouse staff, dispatchers, and accounting teams freely share unusual patterns or gut feelings about transactions that seem off. One person’s “weird feeling” could save you thousands.
- Industry Intelligence Exchange: Join forces with other logistics professionals through trade associations and regional networks. When you hear about a new scam targeting drayage operations in Seattle, you’ll be ready when those same criminals hit your lanes in Chicago.
- Digital Paper Trails: Set up automated checkpoints that flag unusual patterns, such as a trusted carrier suddenly changing bank accounts or a new customer rushing high-value loads. Modern TMS systems offer powerful fraud detection tools that work while you sleep.
- Response Game Plans: Create clear playbooks for when fraud strikes. Map out who calls law enforcement, when to loop in legal counsel, and how to secure evidence. Quick, coordinated responses often mean the difference between recovery and total loss.
Calculate your potential Saving While Using an enterprise TMS
Beyond the Scams: New Weapons in the Freight Fraud Fight
While supply chain leaders knew freight fraud was costly, few were ready for the financial hemorrhaging that’s now draining companies’ profits and threatening their survival.
Behind every fraud case is a team scrambling to recover stolen cargo, untangle sophisticated scams, and rebuild broken customer trust. And these aren’t just big-city problems anymore. Criminal networks target shipments and systems across North America, with particular pressure points in California, Texas, and Illinois.
By integrating MercuryGate’s TMS with Truckstop’s extensive carrier network and Book It Now technology, you can count on a security framework that protects shipments without slowing them down. The proof is in the results — Truckstop’s verification protocols blocked over 8,600 fraud attempts, while our shared platform gives you real-time visibility from booking to delivery.
Watch this 3 with the SME digital event to learn more about how our integration with Truckstop gives MercuryGate users a rock-solid source for trusted capacity and “Book it Now” access to the best rates.
