There has been a lot of talk in the freight industry regarding the new tariffs. Carrier Assure does not participate in trade policy, but we do deal with the after effects when freight market chaos takes shape: specifically, fraud.
A few weeks ago, we conducted a poll on LinkedIn to see how people in the industry were preparing their fraud prevention strategies due to tariffs. The results?
- 43% of people said they have already changed their fraud prevention plan.
- 21% of people said they are going to.
- 36% of people said they have not or are not sure they should.
And that last statistic? THAT is where the risk is.
The truth is that while tariffs may not directly be the source of fraud instances, they certainly open the door for them. And there is not a complete dialogue happening about this.
How Tariffs Create Opportunities for Freight Fraud
Cassandra Gaines, our CEO, and one of the first to point out how trade policy ripple effects create freight blind spots, goes one step further.
Tariffs change trade routes, meaning that:
1. Freight cargo is going through different ports and/or hubs and inexperienced players are increasing capacity to the market to offload freight overflow.
2. Shippers are seeking out the cheapest option, meaning the "too good to go with" rate is beginning to look less alarming.
3. Brokers are pressured to move more quickly, and when speed (and adding capacity to move freight) takes precedence over due diligence, logistics fraud can take place.
But this is not all, here are some overlooked insights to help you understand our current freight situation:
1. Disrupted trucking routes mean new blind spots
Tariffs often require freight cargo to take different trucking routes.
A product that was shipped from the West Coast may now go to the Gulf, or East Coast in an effort to stay as far away from the cost hikes as possible. This might not always mean higher rates but there is definitely more complexity involved.
For freight brokers, this creates an entirely new level of risk: new, unfamiliar over the road carriers, with little to no track record or experience with on time performance and safe deliveries, entering new, unfamiliar lanes.
And when speed is more important than confidence, these bigger gaps become risky vulnerabilities we need to be aware of.
2. Spot market exposure will Increase
Truckstop reports they see tariff shakeups force more freight shipment through the spot market rather than long-term contracts. Spot cargo loads come in quickly and generally with a minimal carrier vetting period. That is when the fraudsters target the freight market with more intent.
Fraudsters, already having little or no history (and we have documented some of them being completely fake with our Carrier Assure score), can easily slip into your logistics network.
Ghost MCs, and double brokers absolutely love the spot market, knowing urgency can trump caution.
3. Smaller players get impacted first
Tariffs increase operating costs, and that pressure is heaviest on small and mid-size carriers, which end up cutting corners in response, such as:
- Reducing their insurance coverage to save money.
- Leasing or selling their MC to someone else.
- Promising too much capacity or too many lanes to win the loads.
That’s a cocktail for confusion and fraud. A carrier might technically exist on paper, but behind the scenes, someone else is operating under their name, with no accountability.
4. Freight Volume spikes = less due diligence and less carrier vetting
Every time there is a volume spike due to some policy, the operational teams are overwhelmed, which leads to brokers and shippers making quick decisions and forgetting important checks.
The next disruption is already flying towards us. Let's not lose your freight cargo in it.
What Does This Mean For Your Fraud Prevention Plan?
If your fraud prevention plan hasn't been updated since Q4 2024, you're likely missing a few things:
- Lane-based carrier vetting filters
- Trucking authority age minimums
- Entity cross-checking
- Real-world trucking activity validation
That’s where Carrier Assure’s algorithm comes to play. Carrier Assure Reports:
- Help you Cross-reference DOT inspection sites against claimed service lanes
- Identifying suspicious authority behaviors
- Showing when a carrier hasn't been seen on the road for months (which is indicative of a sold MC)
- Assisting logistics brokers in tracing contact information back to potentially fake or shared MCs
With the Carrier Assure software vetting platform, you can vet carriers beyond paperwork and rely on multiple data points, which helps mitigate risks that can arise when the logistics market is in flux.
Tariffs Aren't The Threat. Unpreparedness Is.
Tariff policy comes and goes. Cargo fraud doesn't wait and cargo fraud prevention is always important.
Carrier Assure reports help logistics brokers across the country prepare, not panic, when they have access to data that matters when markets get messy.
If you'd like to see what smarter carrier software vetting looks like in practice, request a demo of the Carrier Assure software platform today.
