In today’s fast-moving logistics and freight industry, phone-based scams are an increasing threat. Fraudsters are becoming more sophisticated, using techniques like phone spoofing to manipulate employees into sharing sensitive information. The result? Costly fraud schemes, including load phishing, identity theft, and stolen shipments. IIn this blog, we’ll explore how phone fraud occurs, its connection to freight fraud, and most importantly, the practical steps you can take to prevent it.
The Growing Threat of Phone Fraud
While double brokering and cargo theft dominate fraud discussions, phone spoofing remains an overlooked yet highly damaging tactic. Fraudsters disguise themselves or act as the carrier you just booked a load with, to trick employees into believing they are legitimate carriers or service providers.
The freight industry’s lack of caller verification makes it vulnerable to scams. For example, a fraudster might pose as a carrier you’ve booked, requesting sensitive information like rate confirmations. Without proper verification, a carrier rep may unknowingly share critical details with the wrong person.
This simple, yet dangerous mistake can open the door to several types of fraud:
Load Phishing: Fraudsters call to acquire load details or routing information to steal shipments or conduct fraudulent transactions.
Dispatch Services: Scammers may pose as dispatch companies, offering non-existent services or misdirecting freight.
Identity Theft: Fraudsters may gain access to sensitive information by impersonating legitimate carriers.
Double Brokering: By using phone fraud to trick brokers and carriers into engaging with fake intermediaries.
Chameleon Carriers: Fraudsters create fake carrier identities and take advantage of repeated booking opportunities before they disappear.
Stolen Loads: By posing as legitimate carriers, scammers can gain access to shipments and reroute or steal them.
Stopping Phone Fraud: Tips to Protect Your Freight Business
To prevent phone fraud from affecting your operations, it’s crucial to implement strategies that can help verify the identity of callers.
Here are some tips for stopping phone fraud before it starts:
- Leverage Technology to Authenticate Phone Numbers
Implement phone number validation technology to authenticate incoming calls and verify they come from trusted carriers. This system helps prevent phone spoofing and serves as a first line of defense against fraudsters trying to deceive your team.
- Prohibit Sharing Sensitive Information Over the Phone Without Verification
Establish strict protocols for sharing sensitive information over the phone. Never release load details, payment terms, or contracts unless the caller’s identity is verified through a secondary method, like email, system checks, or a callback.
- Educate Your Team on Common Scams and Red Flags
The best defense against phone fraud is a well-trained team. Educate staff on common scams and equip them with tools to spot red flags, preventing fraud before sensitive information is shared.
- Establish a Clear Process for Confirming Carrier Information
Establish a standardized process to confirm carrier details and verify identities through multiple channels before sharing sensitive information, ensuring you work with legitimate carriers and prevent fraud.
- Utilize Secure Communication Channels
Use secure communication channels like encrypted messaging or email for sensitive transactions, reducing the risk of fraud and interception.
Leading the Way in Fraud Prevention
Phone fraud is just one of the many ways that fraudsters can disrupt your operations, but with the right tools, education, and best practices, you can reduce the risk significantly.
By adopting advanced technologies like Highway’s Carrier Identity® Engine, integrating Highway into your VoIP system to verify phone numbers, and establishing internal protocols for call identification confirmation, your business can stay ahead of fraud before it becomes a problem.
