The Transportation Intermediaries Association (TIA) has released its April 2025 State of Fraud in the Industry report, sounding the alarm on an unprecedented rise in freight fraud across the $343 billion third-party logistics (3PL) sector.

Based on member surveys and data collected from TIA’s Watchdog platform, the report reveals a growing crisis with mounting financial losses and increasingly sophisticated fraud schemes. Small and mid-sized brokers—many with annual revenues under $5 million—are facing an unsustainable burden.

Key Takeaways from the Report:

• Mounting Financial Damage:
  22% of TIA members reported losing over $200,000 to fraud in the past six months alone. Another 10% spent similar amounts just on prevention measures.

• Most Common Scams:

  • Unlawful brokerage, where fraudsters pose as legitimate brokers, was cited by 34% as the top issue.

  • Cargo theft continues to rise, especially targeting common goods like electronics and household products.

  • Identity spoofing complicates the verification process, making it harder to detect fraudulent carriers.

• Widespread Impact:
  A staggering 83% of respondents experienced three or more types of fraud during the reporting period. Major hotspots included Texas, California, South Carolina, and Washington—but incidents were reported nationwide.

• Spike in Activity:
  Between September 2024 and February 2025, TIA’s Watchdog logged over 1,600 fraud cases—a 65% increase compared to the previous reporting period, despite being two months shorter.

Fighting Back with Tech-Enabled Solutions

In response to the surge, TIA has released a Post-Fraud Incident Checklist to guide members through containment and reporting. The association is also lobbying federal agencies and lawmakers for stronger enforcement, including cleansing fraudulent carriers from FMCSA databases and passing consumer protection legislation.

But beyond regulatory action, technology is also stepping in.

Fraud prevention platforms like Hault.co are making a measurable difference. By using AI-powered driver ID and facial recognition technology, Hault helps shippers and brokers verify identities in real-time—dramatically reducing risk at the point of driver check-in. The system flags impersonators, ensures only verified drivers access freight, and operates without the need for deep system integrations.

As the logistics industry faces an increasingly complex threat landscape, combining regulatory support with technology-driven security is key to staying ahead.

To view the full TIA report and download the Post-Fraud Incident Checklist, visit TIA News.