Cargo theft is soaring, with no sign of decline in sight. In 2023 alone, the U.S. faced losses of $130m due to cargo theft, and experts suspect the actual figure to be even higher. Fraudsters are becoming increasingly innovative in their methods, now exploiting the freight bidding process on load boards to secure loads, among other scams.
In this article, Scanbot SDK explores how thieves utilise new technology to target cargo and demonstrate the effectiveness of using identity verification with a CDL Scanner to counteract these threats.
New load board fraud techniques
Load boards are pivotal in managing cargo distribution across the U.S., connecting shippers and carriers to enable efficient logistics chains. Brokers use them to assign loads to carriers, who then deliver according to agreed conditions.
However, the anonymity of these platforms leaves them vulnerable to exploitation. Users cannot assume their partner’s credentials are genuine – scammers often employ identity theft and exploit loopholes in the bidding process to procure freight.
Two particular fraud schemes are gaining traction.
Load phishing
Scammers use the credentials and information of legitimate trucking companies to deceive brokers into assigning freight to them. They provide contact details, such as email addresses, that appear legitimate to unsuspecting brokers, and the fraudulent carriers operate with fake IDs or CDLs.
Following a convincing email exchange and successful negotiation, the cargo is loaded but never reaches its destination. Instead, the fraudsters divert it for their own purposes, often selling it on the black market.
Double brokering
In a double brokering scheme, a fake broker or carrier wins a bid on the load board. Rather than transporting the load or outright stealing it, they broker it again.
Another unsuspecting carrier then takes over – often for less money than the first, or without being paid at all. This situation damages both the original shipper and the carrier.
Despite their security flaws, load boards remain the most popular means of assigning cargo to carriers in the U.S. Fortunately, there are methods to counteract these fraud schemes.
The role of the Commercial Driver’s License (CDL)
CDLs are mandatory for drivers of large vehicles to ensure they can handle the associated requirements. Like standard driver’s licences, CDLs necessitate written and practical driving tests. Different classes of CDLs determine the type of vehicle a driver can operate.
Every commercial driver must carry a CDL and is restricted to holding only one. CDLs, like regular driver’s licences, contain written information about the driver, which is also encoded in a PDF417 barcode. They are unique, personalised documents used for identification.
Using a mobile CDL Scanner
Where load boards fall short on security, a mobile driver’s licence scanner can bridge the gap.
To ensure your load is in the hands of a legitimate driver, scan their CDL before they take over. The information in the PDF417 barcode is harder to counterfeit than the text on the document. Even if a driver’s licence is a perfect fake otherwise, scanning the barcode can reveal it as fraudulent. Some scammers do forge the barcode as well, so verifying the barcode data against a Driver Licence Data Verification Service is advisable.
Scanning CDLs with a mobile barcode scanner is a quick and cost-effective alternative to dedicated scanning devices. A CDL Scanner can be easily integrated into an employee-facing mobile app for smartphones and tablets, providing portability and multi-functionality.
Ultimately, scanning a CDL takes only milliseconds but could prevent significant load losses. In the long term, CDL scanning and verification can substantially reduce load board fraud.
Introducing the Scanbot Driver’s Licence Barcode Scanner SDK
Integrate the Scanbot U.S. Driver’s Licence Scanner SDK into your app to automatically extract personal data from CDLs. The Scanbot SDK scans all common 1D and 2D barcodes, including the PDF417 barcode on the back of any AAMVA commercial driver’s licence.
You can extract data like driver names in 0.2 seconds without disrupting employee workflows and easily verify the document. The SDK boasts an accuracy of 98.7% and reads barcodes even in poor lighting conditions.
The Scanbot Driver’s Licence Barcode Scanner SDK functions anywhere, anytime, without internet access.
Since the SDK operates solely on the user’s mobile device, it does not connect to third-party servers, ensuring compliance with stringent data protection regulations and safeguarding sensitive personal data on CDLs.
Read the full blog from Scanbot SDK here.
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