Inside the $800 Million Trucking Fraud Problem | Ep 18

In this episode, I sat down with Dale Prax, CEO of Direct Expedite LLC and founder of freightvalidate.com. He’s a broker with more than 25 years of experience in logistics and he’s on a mission to end fraud in trucking.

We talked about trends in freight fraud and what new carriers can do to set them apart, build relationships and book loads in the first months of operation.

Learn more about his work at freightvalidate.com.

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Episode Highlights

Discussion on Factoring and Fraud:

• Prax appreciates the work done by Bobtail in providing guidance to carriers.
• Fraud in the trucking industry has become sophisticated, with criminals bypassing vetting processes.
• Prax shares anecdotes about fraud, such as the selling of MC numbers by retiring operators, which fraudsters use to deceive customers.

Fraud and Safety Issues:

• Fraud is not just a financial issue but also a safety concern, as it can impact a driver’s ability to maintain their vehicle and comply with safety regulations.
• Detention times also pose safety risks, as they can leave drivers rushed, frustrated, and sleep-deprived.
• Prax criticizes unethical brokerage practices, such as underpaying drivers for detention time despite receiving higher rates from shippers.

Related: How to Avoid Freight Scams and Fraud in Trucking

Vetting Carriers:

• Direct Expedite looks for professionalism, compliance with laws, and a strong reputation in carriers.
• Prax emphasizes the importance of personal relationships in vetting and suggests that carriers should be wary of brokers operating out of virtual offices or PO boxes.

Fraud Trends and Solutions:

• Fraud in the trucking industry has increased, with more sophisticated scams and double brokering schemes.
• Prax expresses frustration with regulatory bodies for not enforcing existing laws that could mitigate these issues.
• Prax developed FreightValidate.com to help businesses verify the legitimacy of carriers and brokers.
• He advocates for using technologies like facial recognition for identity verification, despite some industry resistance.
• The conversation touches on the slow adoption of technology and administrative hurdles in implementing better fraud prevention measures.
• Prax believes that more brokers should adopt advanced vetting technologies to protect the industry from fraud.

If you have questions, send them our way! Write to hello@bobtail.com.