Most carrier fraud and freight loss is preventable. Experienced freight brokers and shippers know what warning signs to look for before ever booking a load. Here are the 7 biggest red flags that should make you pause — or walk away entirely.
Freight fraud is on the rise. The Federal Motor Carrier Safety Administration reports thousands of cases annually involving carriers with fake or stolen identities. Always verify before you book.
🚩 Red Flag #1 — Authority Is Less Than 6 Months Old
New carriers statistically have higher crash rates and are far more likely to be involved in freight fraud schemes. A carrier that registered their authority last month has zero safety track record. This doesn't mean you can never use new carriers, but it should trigger additional verification steps — call references, verify equipment, and consider requiring a higher insurance threshold.
🚩 Red Flag #2 — Insurance Shows a Pending Cancellation
A pending insurance cancellation means the carrier's insurance policy is about to lapse. If that cancellation goes through while your freight is in transit, you have no coverage for loss or damage. Always check for pending cancellations in the FMCSA record before booking.
Even if the cancellation date is weeks away, do not book loads with a carrier showing a pending insurance cancellation. Insurance issues are often a sign of deeper financial problems.
🚩 Red Flag #3 — Contact Info Doesn't Match FMCSA Records
One of the most common freight fraud techniques is "identity theft" — criminals use a real carrier's DOT or MC number but provide their own phone number and email. When you call or email, you're actually talking to the fraudster, not the real carrier. Always compare the contact information a carrier gives you against what's on file in the FMCSA database. Discrepancies are a serious red flag.
🚩 Red Flag #4 — Carrier Can't Provide a W9 or Carrier Packet
Legitimate carriers have standard carrier packets ready to send. If a carrier refuses to provide a W9, certificate of insurance, or carrier agreement, that's a serious problem. These are standard business documents that any real carrier should have on hand.
🚩 Red Flag #5 — Fleet Size Doesn't Match Their Capabilities
FMCSA records show how many power units a carrier has on file. If a carrier claims to have 50 trucks available but their FMCSA record shows 2 power units, something doesn't add up. Either their records are out of date (bad sign) or they're misrepresenting themselves (worse sign).
🚩 Red Flag #6 — Authority Has Been Revoked Before
The authority history section of an FMCSA record shows whether a carrier's authority has ever been revoked and reinstated. One past revocation might be forgivable with explanation. Multiple revocations are a pattern that warrants extreme caution.
🚩 Red Flag #7 — They Pressure You to Book Without Verification
A legitimate carrier will never pressure you to skip the verification process. If a carrier is urgently pushing you to book immediately, offering rates that seem too good to be true, or resisting your standard onboarding process — trust your instincts. Pressure tactics are a hallmark of freight fraud.
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None of these red flags individually guarantees a carrier is fraudulent or incompetent. But each one is a reason to slow down and verify more carefully. Two or more red flags together should make you very cautious. Trust your instincts — if something feels off, it probably is.