Theft, the art of one taking what isn’t theirs, is a malpractice which likely dates back to caveman economies. As long as there’s someone with something, an another someone will covet that something’s value and may resort to illicit methods to swipe the said something which isn’t rightfully theirs.
In the modern day, all marketplaces are vulnerable to this phenomenon, including the trucking industry. Since the days when the first fleets of commercial trucks hit the roads, cargo theft has afflicted stakeholders: carriers; brokers; shippers; and government agencies.
However, gone are the days of crowbars and broken padlocks. The advent of more technologically advanced, and subsequently dependent, supply chains has led to an evolution in the execution of cargo theft. Today, instances of it are smarter, faster, more cunning, more deceiving, and more prevalent than any other period in trucking’s history.
An example of cargo theft’s beguiling makeover is the fictitious pickup—a scheme where cargo is stolen by fraudulent means, like a truck driver using phony identification or a fictious business posing as a real trucking company hired to haul a load.
In fact, fictious pickups have become a more popular form of cargo theft in the trucking industry. According to theft solutions provider CargoNet there were 127 more cases of fictious pickups in 2023 compared to 2022.
While it’s still necessary to lock warehouses and trucks, supply chain professionals must also safeguard their supply chains from a newer, more sophisticated, digital form of theft. The following are ways to mitigate fictious pickups.
Harness the power of authentic communication
Akin to the preachings of boomer supply chain professionals to their children: “Get off the computer!”
A way of determining the legitimacy of a carrier is through a quick phone call. More sophisticated bad actors will use fake or duped phone numbers, but nonetheless, a cautionary dial can be revealing. Some fraudsters may’ve passed on the due diligence of setting up an actual phone line for their fake number to ring to—a dead end that will identify the hoax.
As a freight broker/intermediary, Commerce Express Inc. verifies the authenticities of all carriers it partners with on customer shipments. This added diligence helps reduce the risk and increases the transparency and security of each transaction.
Using verification tools
Another layer of theft prevention is the use of tools to verify the legitimacy of carriers. The Federal Motor Carrier Safety Administration (FMCSA), a government agency, provides resources to help confirm whether a trucking company is who it says it is. The FMCSA’s SAFER System (Safety and Fitness Electronic Records) stores phone numbers and other information, allowing users to cross-reference carrier contact details and identify potential discrepancies.
In addition to federal databases, online search engines are also a resource worth tapping into. If the entity being evaluated doesn’t have a website or, if they do, the website has minimal information or prompts security warnings by internet browsers, it’s increasingly likely that fraud is in play.
Lastly, the age of the carrier in question can reveal insight into its credibility. If the carrier appears to be only a couple months, weeks, or even days old, further qualification is strongly recommended. While trucking companies continue to sprout up every day, a tell-tale sign of a scam is the lack of operating history. Commerce Express’ rigorous vetting process includes a requirement that hired carriers must be in business for longer than six months.
Diligent checking of documentation
Another characteristic of fictitious pickups is deception through fraudulent paperwork, a scam which tricks victims into handing their cargo over to thieves. Bad actors have gotten awfully cunning at producing illegitimate copies of legitimate documents, such as insurance certificates or bills of lading.
Shippers should train on-site staff to recognize signs of fraud and security measures they can take to avoid being victims. Should a staff member suspect a bad actor posing as a driver, they should contact the involved parties and cross-reference information on all documents. And, for prosecutorial posterity, they should photograph the driver’s likeness, truck, and license, evidence that would surely aid an investigation of fraud if such an event occurred.
Service perspective: Commerce Express’ carrier vetting
As a freight broker, Commerce Express Inc. acknowledges it’s at an inherent risk of being targeted through fraudulent practices, like fictious pickups. However, the Commerce Express team works closely with their shipper-customers and transportation partners to ensure complete visibility for all parties.
“Our team rigorously vets prospective carriers before we make the important decision to entrust one with a client’s load. We have a qualification process which includes proving if a carrier is credible, reputable, and in business for at least six months. We also verify the identities of truck drivers, trucks and equipment, and other personnel involved in each transaction,” Commerce Express Managing Director Andrew Koval states.
Can Commerce Express provide peace of mind, security for your cargo?
Recent Comments