How Training and Technology Can Effectively Reduce Fraud Risk: Strategies for Success

Fraud and scams are big worries in the freight industry. As technology evolves, so do the ways fraudsters operate.

Lisa Haubenstock from Truckstop has seen a significant rise in fraud cases over the last few years. “We’ve tracked reports for 30 years,” she explains, highlighting how the trend is alarming.

Unlike other industries, trucking has unique vulnerabilities. Cyberattacks, theft, and double brokering are just a few issues disrupting the industry. “We fight fraud on multiple fronts,” says Haubenstock. This complex landscape invites bad actors to exploit weaknesses.

Many freight companies are not prepared for these attacks. Haubenstock notes that outdated practices contribute to this vulnerability. “Firms are operating with old systems, which leaves them exposed,” she says.

Notably, many firms lack cybersecurity training. Poor training allows fraud to thrive. For instance, one compromised account can lead to significant issues. “Due diligence and regular training are vital for everyone,” says Haubenstock. Understanding risk is also crucial for making wise business decisions.

Brokers play a key role in keeping their operations secure. “Building solid relationships with carriers can help ensure everyone is educated about these issues,” she adds. Carriers often need extra help to understand security measures.

Simple training can protect against scams. Many scams, like spoofed emails asking for addresses, still work remarkably well because people often fall for them. Haubenstock points out that updated training must occur continuously as scams evolve. For example, some scams now use fake QR codes.

Companies must assess the readiness of their teams to face these attacks. Fortunately, well-designed training can significantly reduce risks. Fraud often stems from human mistakes, influenced by individual pressures.

In high-pressure scenarios, a salesperson might choose a risky option, conflicting with the company’s risk policies. Haubenstock suggests using technology to enhance security measures. “Automating certain processes can focus attention where it’s needed,” she says.

Bad actors become increasingly skilled. To combat this, companies should choose the right tech partners. Truckstop, for example, gathers vast amounts of data to better understand risks in the industry. Their product, Risk Factors, helps identify risks associated with VoIP and IP addresses.

As fraud continues to evolve, staying vigilant is more important than ever. A comprehensive view of patterns can help combat future losses.