As the freight industry adopts new solutions to fight fraud, we need to consider the bigger picture.

Fraud has been an issue in the freight industry for a long time. As fraud has gotten more sophisticated, there’s been an urgency around creating failsafes. Solutions are emerging, but in the process, the industry risks overcorrecting in ways that have had unexpected consequences. In the last few years, as companies have deployed technology to fight fraud, I’ve seen firsthand how overzealous algorithms flag legitimate carriers.

This is a slippery slope, particularly for small trucking companies that may not be able to recover from being wrongly flagged.

Looking ahead, if too many of these small trucking companies are put out of business, it affects the entire industry. When small trucking companies disappear, larger trucking companies grow. For shippers, less companies means less transparency, rising prices and less competition.

It’s going to take time and cooperation to come up with solutions that don’t unfairly punish the small, owner-operated companies. In the meantime, here are a few things we can do to the turn the tide.

1. Know your broker and carrier. There’s no technology that can take the place of a steady relationship with your broker and carriers.

2. Sharpen up the solutions to fighting fraud– together. As an industry, we need to focus on finding solutions to counter fraud that don’t have unintended negative consequences for the little guys.

3. Offer flagged carriers an opportunity to tell their story. Don’t just assume that a red flag means a carrier has done something wrong. When I see a legitimate business being flagged, I want to see all the relevant information and then make a decision for myself, based on facts.

I’m positive we can prevent fraud without putting the owner-op under the bus. What are your thoughts? Let’s talk.

Until next time,

Liz Wayne