Cargo theft has fundamentally shifted from highways to inboxes. Fraudsters now exploit the digital handoff between shipper, broker and carrier — acquiring dormant carrier authorities, compromising email systems and impersonating legitimate operators to pick up freight with full authorization. Freight is now vulnerable before it even leaves the dock.

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The American Transportation Research Institute’s (ATRI) recent report on cargo theft estimates total motor carrier losses between $456.7 million and $937.4 million annually across the U.S. trucking industry. The scale has accelerated dramatically. In Q2 2025, U.S. cargo theft rose 33% year-over-year to 525 incidents, according to FreightWaves, while Highway’s Q3 2025 Freight Fraud Index shows the platform blocked over 605,000 fraudulent email attempts, 62,000 fraudulent phone numbers and identified 149 unauthorized FMCSA contact changes in a single quarter. These figures only capture the direct cost of missing cargo. When freight vanishes, shippers must scramble to keep production lines running and customer commitments intact.

As fraud attempts multiply and recovery becomes increasingly unlikely, shippers need ironclad verification standards from their logistics partners. By examining the three tactics fraudsters deploy most, we can see exactly what shippers should demand from their brokers.

The “sold MC” scam: when legitimate credentials hide fraud

The first tactic exploits a vulnerability in how the industry verifies carrier credentials. Fraudsters have learned to purchase dormant but legitimate motor carrier authorities on the secondary market. The MC number passes standard vetting with valid insurance, an acceptable safety record and proper FMCSA registration. Brokers book what appears to be a vetted carrier — one that may have successfully hauled freight months earlier. Once fraudsters acquire the MC, they update contact information and insurance details while the carrier’s clean history remains intact. The driver arrives at the dock with proper paperwork and a legitimate MC number. By the time anyone realizes the carrier’s ownership changed hands, the freight is already gone. 

The scam exposes a critical vulnerability in carrier vetting. Traditional verification focuses on static credentials at a single point in time, but credentials can remain legitimate while control of the carrier changes hands. Once fraudsters load the freight, recovery becomes unlikely. ATRI data shows that shippers never recover 73.5% of stolen motor carrier cargo, leaving them to manage the fallout with their customers.

Email compromise and digital interception

The second major attack vector exploits vulnerable shipper communication channels. Fraudsters compromise dispatcher or carrier inboxes and insert themselves into existing email threads between shippers, brokers and carriers. 

They intercept rate confirmations before the legitimate carrier sees them, update pickup instructions and reroute freight while appearing legitimate. After stealing the information they need, they delete email threads, leaving no immediate trace. Shippers authorize pickup based on email correspondence that looks identical to normal processes. 

Every step of the process looks routine until the freight never arrives.

Phone-based impersonation

The third tactic bypasses email security entirely. Bad actors use VoIP technology to spoof legitimate carrier phone numbers, making caller ID unreliable. They call brokers and sometimes shippers directly to confirm pickup details, update delivery instructions or report “system issues” that require manual coordination. In some cases, they pose as carrier representatives reporting a “compromised email” to gain sympathy and bypass verification steps.

Standard communication protocols — email confirmation followed by phone verification — can be compromised at both points. High-value shipments that require extra coordination are particularly vulnerable. Once the scammers have load details, they dispatch a driver with enough information to pick up freight without raising suspicion.

The questions shippers should ask

The most effective defense against freight fraud involves treating verification as an ironclad operating procedure. Companies that build systematic checks into every transaction, from initial carrier vetting through final delivery confirmation, will see far better outcomes than those relying on sophisticated but inconsistently applied security measures.

Shippers can’t control their brokers’ or carriers’ security practices, but they can require transparency. Shippers should ensure they ask logistics partners these critical questions before signing any contracts: 

1. How do they verify carrier identity at the point of booking, and do they re-verify before sharing pickup details? 
2. Do they deliver rate confirmations through secure channels that require multifactor authentication, or via standard email? 
3. Can they detect unusual account behavior like logins from unfamiliar locations, sudden changes in dispatch patterns or requests to update payment information? 
4. Do they have a process to confirm pickup directly with the actual carrier using independently verified contact information? 
5. What platforms do they use for continuous carrier monitoring beyond onboarding vetting? 
6. If a theft occurs, how quickly can they report it to industry platforms to aid recovery and protect other shippers?

Internally, shippers should require dock staff to verify carrier identity against the original booking information rather than just the paperwork presented at pickup. For high-value shipments, implementing a two-call verification process works well: one outbound call to the broker confirming carrier details, one to the carrier using a phone number sourced independently. 

Confirming delivery directly with the customer or receiving facility rather than relying solely on the carrier or broker adds another layer of protection. Any last-minute changes to carrier information, pickup times or delivery locations should trigger additional verification. 

The overarching principle: shippers should diligently vet broker security capabilities, treating this process as a non-negotiable selection criterion — and never an afterthought.

Where leverage lives

Freight fraud will continue to evolve. To combat it, brokers and the 3PLs shippers rely on must adapt their verification protocols.

For shippers, their best leverage against fraud lies in the standards they set: requiring brokers to demonstrate continuous monitoring, secure communication protocols and rapid incident response. 

Resilient supply chains will treat identity verification and digital hygiene as non-negotiable fundamentals rather than optional safeguards.

Author Bio

Mike Beckwith serves as Vice President of Operations within Odyssey Logistics’ 3PL and Brokerage business, overseeing operational strategy and growth.

With more than a decade of experience across operations, sales leadership, and process design, Mike is known for building high-performing teams and implementing technology-driven solutions that enhance service and efficiency. He has also contributed to industry education through his work with the University of Tennessee at Chattanooga’s Supply Chain Academy, helping develop future supply-chain leaders. Mike remains committed to strengthening partnerships, elevating service standards, and positioning Odyssey as a world-class leader in logistics and supply chain management.