Cargo fraud is surging, but new FMCSA rules give legitimate carriers tools to prove they’re the real deal.
by Danielle Spinelli, “The Fraud Girl," Descartes
December 2, 2025Cargo theft and fraud continue to wallop the North American trucking industry. Organized crime rings, AI-driven scams, and deceptive carrier tactics surged to record levels in 2024, and estimates are that fraud currently costs the U.S. economy up to $35 billion annually.
For motor carriers, the impact goes beyond freight losses. It affects insurance rates, business relationships, and the ability to secure loads. Recent changes from the Federal Motor Carrier Safety Administration, however, are offering legitimate motor carriers new ways to prove their trustworthiness.
It’s one of the most significant anti-fraud initiatives from the agency in years.
FMCSA’s Identity and Business Verification Rollout
In April 2025, FMCSA began rolling out Identity and Business Verification requirements that are changing how new applicants are vetted to ensure they comply with applicable statutes and regulations.
In the FMCSA’s Unified Registration System, new commercial driver applicants must first match a government-issued identity card, driver’s license, passport, or resident card with a facial scan.
To perform the identity verification, FMCSA works with IDEMIA, the same solution used by the Transportation Security Administration.
Within the URS, applicants are routed to the IDEMIA website to scan their credentials, along with a live scan of their face, before allowing them to continue the process. (At no time does FMCSA or IDEMIA store any personally identifiable information. The information is used solely for verifying identities as part of the agency’s registration process.)
Applicants must also provide a valid physical business address. Virtual addresses, such as a P.O. box, USPS box, Staples address, etc., are not allowed.
From April 7, 2025, through June 30, 2025, FMCSA had over 38,000 unique applicants in the URS.
88% passed the verification without issue
7% failed requiring manual review (e.g., expired credentials, poor lighting during facial scanning)
5% were “ghost applicants” who abandoned the process (including bot attempts).
Verification For New-Authority Motor Carriers
With more than 300 enrollment centers nationwide, FMCSA is establishing “new authority carriers” — new trucking companies that have obtained their federal operating authority — as some of the more trusted entities on the road.
FMCSA plans to roll out the same verification process for existing users in its new carrier registration system called MOTUS.
Targeted for a phased rollout, the solution is aimed at modernizing carrier registration by supporting multiple authorized users per account, business verification, document uploads, and tighter account controls.
The updates are expected to deter a high majority of scam attempts and also make it harder for bad actors from outside North America to get into FMCSA accounts.
For motor carriers, it means more secure onboarding processes and a stronger foundation of trust with shippers and brokers.
Cargo Fraud Grows More Sophisticated
As FMCSA tightens requirements, fraud is getting more frequent, and tactics are increasing in sophistication.
While the prospect of using a new carrier was historically more of a safety consideration than a fraud concern, the fraud landscape started to change dramatically after 2020.
Today, freight fraud materializes in the field as double brokering, fictitious pickups and deliveries, mode switching, and cargo theft.
Criminals capitalize on phishing scams, identity theft (bad actors impersonating reputable carrier brands), and data spoofing (disguising and misrepresenting driver location, load status, or compliance scores) in fraud schemes.
With data spoofing of location/tracking data alone, nefarious tactics include:
Hiring third-party companies that specialize in simulating app-based tracking data. These companies use sophisticated tools to generate fake location updates that mimic real-time GPS data.
Using emulators that allow users to run mobile apps on a computer and manipulate the device’s GPS coordinates. This method creates the illusion that a truck is in motion when it’s not.
Using Voice Over Internet Protocol (VOIP) numbers to create multiple driver accounts or to obscure a driver’s true identity. For example, a carrier can register multiple fake accounts using VOIP numbers, then spoof locations to simulate a larger fleet or to mask the true location of shipments. VOIPs also enable location spoofing by manipulating app permissions. When a tracking app relies on phone-based authentication, VOIP services can create virtual phones in different geographic regions, further complicating tracking accuracy. These tactics affect both brokers’ visibility and carriers’ ability to prove compliance or defend claims.
Staying Ahead of the Latest Fraud Tactics in Cargo Theft
To stay ahead of these tactics, technologies are available that focus on early detection and proactive notifications to customers to help prevent incidents.
Criminals also exploit gaps through low-tech means by manipulating paperwork to disguise themselves as legitimate carriers. Suspicious transloading onto U-Hauls, anomalies in Motor Carrier (MC)/Department of Transportation (DOT) registrations, and AI-generated calls from “brokers” are other red flags.
One persistent problem is the sale of MC numbers, which continues to undermine verification efforts.
While there are legitimate reasons for selling an MC, scammers buy the authority but leave the original seller’s contact information unchanged, exploiting the original carrier’s trusted identity.
Legislative action may well be required to close this loophole, combined with carrier education on proper processes of selling authority within the current law.
Everyone Pays for Freight Fraud
According to CargoNet, cargo theft activity across the U.S. and Canada spiked by 27% in 2024 compared to 2023, with 3,625 reported incidents across North America. In addition, the estimated average value per theft rose to $202,364, up from $187,895 in 2023.
In its 2024 Fraud Report, the Transportation Intermediaries Association (TIA) puts the average cost of fraud per company at approximately $400,000, or $40,000/load.
For those brokering loads to motor carriers, whether a traditional transportation intermediary or a motor carrier needing additional capacity, falling prey to a fraudulent carrier scam is incredibly costly.
When you factor in replacement costs, claims processing, increased insurance premiums, and employee time sunk into dealing with successful or attempted fraudulent incidents, some companies reported losses of more than $1 million, according to TIA data.
Beyond the cost of the stolen cargo itself, losses are being passed down to consumers too, with theft fueling price increases of nearly 20% in some retail sectors. Food and beverage is the top commodity targeted by cargo thieves, according to CargoNet, followed by household goods and then by electronics.
Practical Steps for Transportation Teams
Along with the added protection of FMCSA technology investments, here are five fraud prevention best practices that transportation teams can implement today to minimize risk, and trucking companies can keep in mind in their strategies to be trusted carriers.
For legitimate carriers trying to win freight in a competitive market, these verification measures help prove legitimacy, reduce false associations with fraudulent actors, and provide confidence to shippers who might otherwise view unfamiliar carriers with suspicion.
Layer visibility into carrier vetting: Use platforms that combine FMCSA authority data with historical tracking performance, vehicle identification number verification, geo-location, and insurance validation at the point of onboarding—not just post-dispatch.
Train teams to recognize red flags: Empower dispatchers and carrier reps to spot unusual tracking patterns, identity mismatches, FMCSA profile edits, or VOIP-based driver phones that could be linked to fraudulent entities.
Automate fraud response: Establish real-time alerting workflows for route deviations, location ping gaps, or sudden contact changes—and ensure your team knows how to respond.
Use risk scoring in load assignment: Don’t just rely on past relationships; implement fraud and performance scores into your tendering process to avoid high-risk carriers before a load is booked.
Engage with FMCSA tools and reporting: Leverage FMCSA’s updated registration and complaint portals to verify credentials and report suspicious behavior. The more the industry collaborates, the stronger the shield.
Parting Thoughts
FMCSA’s modernization push, including Identity and Business Verification and the new MOTUS carrier registration system, is an important step to help safeguard the industry and consumers.
Shippers, 3PLs and brokers — your customers and partners — are realizing that the right technology and robust processes are integral to mitigating fraud risk, preventing transportation disruption, and protecting revenue.
The human element, however, is another key component that should not be overlooked. Shippers and brokers need to have ongoing conversations with carrier partners to make sure they’re dealing with reliable partners.
By building trusted relationships, sharing best practices and mutual fraud experiences, and continually innovating, the industry can better navigate the evolving landscape of cargo fraud.
