The vehicle transportation industry is an essential part of the automotive ecosystem, connecting dealers, brokers and carriers to move cars across the country. But in recent years, fraud has become an increasingly serious concern. What was once limited to occasional scams has now evolved into a more organized, digital and far-reaching threat. In fact, there has been a 1,500% increase in vehicle theft since 2022. 

So, what’s behind the rise in fraud, and what can we do to stay ahead?

Factors Driving the Increase in Fraud

• Digital Transformation: Online booking systems, digital load boards and instant quoting tools have made vehicle transport faster and more convenient. However, they have also created more opportunities for bad actors to hide behind fake websites and identities or employ social engineering tactics. Without strong verification methods built into every transaction, scammers can easily impersonate a trusted business and disappear after receiving payment.
• Increased Need for Transportation: In addition to the shift to digital, with more limited inventory and fewer trade-ins coming in, automotive dealers are now having to acquire vehicles outside of their traditional sources and their immediate geographic area. In fact, the distance dealers are now willing to buy from is now over 600 miles on average, up from around 450 miles five years ago. This necessity also creates a sense of urgency, which can be exactly what scammers prey on. When someone is under pressure to acquire a vehicle and its transport, they’re more likely to overlook red flags.
• Regulatory Enforcement Challenges: Due to the nature of vehicle transport, it can be difficult to track and enforce against theft or other fraudulent issues that arise. Fraudsters often operate across state lines and move quickly, making it challenging to investigate and prosecute cases promptly to recover losses or prevent repeat offenses. Scams that live entirely online are even harder to trace.
• Lucrative Targets: With an average cargo theft value of $200,000, vehicle transport can be an attractive target for fraud. Even if a scammer isn’t able to get their hands on the vehicle itself, the transportation transaction can involve thousands of dollars. Scammers can collect deposits or full payments and then disappear, only to set up shop again under a new name.

With fraud becoming increasingly sophisticated and prevalent across the industry, it’s more important than ever for all parties involved to stay vigilant. Know the warning signs of fraud and make sure you’re protecting yourself, ask the appropriate questions before working with a new transportation partner, and stay educated about what’s happening in the industry and how you can stay ahead of fraudsters.  

By understanding why fraud is rising and knowing what to look for, you can make more informed decisions and help create a more secure and trustworthy transportation ecosystem for everyone involved.