Freight fraud casts a long shadow over the trucking industry. Fraudulent activity costs carriers, brokers, and shippers hundreds of millions annually. In response to this growing threat, the Federal Motor Carrier Safety Administration (FMCSA) is rolling out a new identity verification initiative to stop fraud at the source.
This new approach is part of FMCSA’s broader effort to modernize and secure freight operations by verifying who’s actually behind a carrier’s registration. Implementing this approach effectively could reinforce trust, promote accountability, and protect businesses from increasingly sophisticated scams.
Understanding the FMCSA’s identity verification initiative
Historically, bad actors have exploited gaps in the registration and oversight process to pose as legitimate carriers or brokers. These scams often include fake insurance documents, cloned motor carrier numbers, and the re-use of credentials from shuttered or suspended operations. In some cases, criminals even rebrand unsafe or out-of-service carriers to make them appear newly compliant.
To deter fraud, FMCSA is introducing a more robust identity verification process during registration. Every new motor carrier, broker, or freight forwarder must verify their identity through the Unified Registration System (URS) process and a partnership with Idemia. This includes submitting verifiable personal or business identification, biometric data, and ownership details to ensure the entity is who it claims to be.
Why identity verification matters for the industry
Identity verification may seem like a minor administrative step, but it plays a significant role in combating fraud. By confirming the legitimacy of each registrant and tying registrations to real individuals and businesses, FMCSA can prevent the re-entry of fraudulent or unsafe operators into the system. Taking this step reduces fraud risk and elevates safety and compliance standards across the board.
For legitimate carriers and brokers, identity verification results in a more equitable playing field. Those who cut corners or manipulate the system will face increased scrutiny, while reputable operators benefit from less competition with ghost carriers and fraudulent entities.
Partnerships and technology enhancing the process
In addition to the FMCSA’s regulatory changes, private sector partnerships are essential in eliminating fraud. Industry platforms like Freight Validate are helping verify documents and credentials submitted by carriers, reducing the risk of fraud before a shipment hits the road. Tools like this allow brokers and shippers to screen carriers more thoroughly and avoid bad actors.
While not directly part of the FMCSA initiative, security programs like the Transportation Worker Identification Credential (TWIC) continue to offer physical security verification for port and terminal access. TWIC cards are issued after a background check and biometric screening, making them a strong line of defense in verifying worker identity in sensitive freight environments.
While TWIC primarily applies to port and maritime environments, the philosophy is the same: verified identity equals stronger security. FMCSA’s initiative is taking this approach to the over-the-road trucking sector.
How does this affect fleets and brokers?
The new verification process introduces additional steps in the application process for motor carriers. If your business is obtaining new operating authority or updating registration details, expect to submit more detailed ownership and identity documentation. Delays could occur if records aren’t in order, making it important to prepare ahead of time.
Brokers will also need to watch closely. As FMCSA continues tightening controls, brokers will likely face higher expectations in vetting the carriers they work with. Systems like Freight Validate can help fill this gap by flagging credentials or discrepancies in ownership history.
The upside for carriers and brokers is a cleaner, more reliable freight industry. Stronger verification helps weed out double brokers, shell companies, and fraudulent operators that give the industry a bad name and create legal and financial liabilities.
A more transparent future
The FMCSA’s new identity verification process is a long-overdue step that brings more transparency to trucking. The initiative could curb fraud-related losses and improve accountability for carrier and broker applicants.
Another consideration is how Motive’s Face Match feature (governed by Motive’s Biometric Services Addendum), using the high-definition resolution of Motive AI Dashcam, can help fleet managers verify transactions when layered with third-party, private-sector verification tools and programs. Face Match (not available in Illinois) uses facial recognition to help identify drivers and assign vehicle activity, so you know who’s operating your vehicles.
Fleet security is evolving. Motive is leading the way.
Who knows what the future holds for fleet tech? We know that Motive offers other fraud detection tools like the Motive Fleet Card, and prevention tools like AI Omnicam, and the Engine Immobilizer to help keep your vehicles, drivers, and cargo secure.
While the FMCSA’s new procedures may add an extra step or two, they lay the groundwork for a more secure industry.
