Fraud is a growing concern in the transportation industry, affecting businesses of all sizes. At Balz Inc., we’ve experienced firsthand the severe disruptions that fraud can cause—lost revenue, strained relationships, and compromised operations. These challenges have made us more vigilant and determined to protect our customers and carriers.

Through this blog, we aim to raise awareness about the types of fraudulent activity in our industry and share actionable strategies to combat them. Together, we can build a more secure and trustworthy transportation ecosystem. By understanding the many faces of fraud we can build a better awareness of fraudulent activity.

Understanding the Many Faces of Fraud

Fraud can occur at various points in the transportation process, often involving tactics that exploit vulnerabilities in communication, documentation, and verification. Here are some of the most common and damaging types of fraud:

1. Double Brokering is a common scheme that jeopardizes load security and accountability. A carrier agrees to transport a load from a broker but then assigns it to another carrier without notifying the broker. This wreaks havoc and creates liability confusion, payment complications, and poor service quality.  At Balz Inc., we carefully vet our carriers using tools like TIA Watchdog and FMCSA’s Safer database to ensure they have a strong track record and valid operating authority.

2. MC Number Hijacking occurs when scammers steal a legitimate carrier’s Motor Carrier (MC) number. They impersonate that company to secure loads, often disappearing once they receive payment or advance funds. At Balz Inc. we run our own MC number to make sure all information is accurate about our company on FMCSA’s SAFER database. We do the same with potential carriers and lookout for red flags, such as mismatched contact details or recently activated numbers. We inquire with carriers about these red flags and make decisions based on all gathered information.

3. Fuel Advance Fraud involves scammers posing as carriers to request advance payments for fuel, claiming it’s needed to move a load. Once the advance is issued, they vanish without completing the transport. At Balz Inc., we do not provide fuel advances.

The Power of Proactivity

While it is important to note the red flags and the damaging types of fraud, that is only part of the equation. To find solutions we must be proactive in our daily work to protect businesses and the transportation industry alike. Balz Inc., ensures fraud protection at every level:

1. We establish trust through documentation. Clear, transparent communication backed by thorough documentation is the cornerstone of fraud prevention. At Balz Inc., we require the following from carriers:

• Operating authority and W-9 forms.

• Insurance certificates listing us as certificate holders.

• Signed contracts and agreements that outline responsibilities.

2. We offer real-time verification and updates and go beyond initial vetting by maintaining ongoing communication with carriers. For example, we regularly provide our customers and shippers with updates on driver details, including:

• Driver’s name and company name.

• Truck and trailer numbers.

• Truck color and the name of the company on the truck.

• Where the driver is coming in from.

• Expected arrival and departure times.

These updates help shippers/receivers and our customers confirm that the carrier we’ve dispatched matches the one at their dock.

3. We use technology as leverage to maintain real time updates. Technology is a powerful ally in fraud prevention and we incorporate tools like load-tracking software, TIA Watchdog & FMCSA checks to monitor carriers and the shipments in real time. These systems flag inconsistencies that may indicate fraudulent activity.

4. Fraud prevention education is a team effort. We provide regular training for our staff on recognizing warning signs and best practices for carrier vetting. Additionally, we share these insights with customers and carriers, empowering them to spot fraud early.

Working Together to Mitigate Risk

Combating fraud requires collective effort. At Balz Inc., we believe in fostering partnerships built on trust, transparency, and shared responsibility. Here’s how we work with our stakeholders:

• For Customers: We keep them informed at every stage, providing peace of mind through transparency and regular updates.

• For Carriers: We build strong relationships by ensuring fair payment terms and offering guidance on compliance and fraud prevention.

Fraud prevention is not just a reactive process—it’s a proactive culture. By working together, we can safeguard the integrity of the transportation industry and ensure smoother operations for everyone involved.

Stay Vigilant, Stay Protected

Fraud in the transportation industry isn’t going away overnight, but with awareness, vigilance, and proactive measures, we can reduce its impact. At Balz Inc., we’re committed to staying ahead of the curve, protecting our partners, and helping the industry navigate these challenges.

If you’ve experienced fraud or want to learn more about how to protect your operations, reach out to us. Together, we can keep your freight—and your trust—safe.