Staff Reporter

Emerging AI technologies are often touted for their potential to optimize the freight industry. However, a troubling reality is surfacing: AI is also enhancing freight theft on a significant scale.

Why isn’t this darker side getting more attention? While many concerns focus on job displacement and plagiarism, the stealthiness of AI’s capabilities makes it hard to detect. Yet, strategies exploiting these technologies are already in motion.

It’s crucial to understand that even the most vigilant can fall victim to scams, as generative AI increasingly mimics real business practices, empowering crime syndicates to operate more effectively.

This situation is akin to an arms race, requiring a unified effort from tech developers and human operators to shield cargo from these modern cyber threats.

The Challenge of Distinguishing Real from Fake

Criminal organizations are adept at evading detection by operating outside U.S. borders and creating new fraudulent documentation as needed. With AI, their efficiency has multiplied.

“Generative AI makes fraud infinitely scalable and almost automatic,” warns Dr. Richard Paul, a senior consultant at BAYNCORE with expertise in computer simulation and AI.

“Anyone can set up an AI bot to scour the internet for key pieces of information. When combined, these tools can generate documents, emails, and messages that seem legitimate.”

Brittany Graft, COO of the fraud prevention platform Highway, shares these concerns. “Phishing schemes used to be identifiable by poor grammar or misplaced logos.

Now, AI helps criminals craft experiences that closely resemble those brokers and carriers expect,” she notes. “This makes it harder for even the most discerning eye to spot a scam.”

Graft adds that phishing attempts are already succeeding due to their convincing nature. Clicking on these links can lead to sites that look indistinguishable from the real thing. Once brokers and carriers enter their credentials on fake login pages, their accounts—and even email inboxes—are quickly compromised. From there, AI tools can infiltrate load boards, hijack freight, and create chaos.

The situation worsens as bad actors can use generative AI to generate numerous fraudulent carriers or brokers, complete with cloned websites and perfectly crafted emails. Even if a handful of these fraudsters are caught, the larger threat remains largely unaddressed.

Kaylee Nix, President of FreightWaves Group, states, “Freight brokers are facing ever-higher accountability standards. This crisis demands a coordinated effort from the industry to share best practices and tackle this urgent problem.”

In response, the logistics industry’s leading media platform is hosting a FreightWaves Fraud Symposium on May 14 to help brokers better safeguard their businesses and customers.

Leveraging Technology Against Scammers

While AI has enabled a new wave of criminal activity, brokers and carriers are also turning to advanced technologies to defend against these AI-powered threats. Fraud prevention tools have become vital in combating this sophisticated issue.

Graft emphasizes the need for technology to verify identities as AI improves at mimicking reality.

What tools are available? Digital identity wallets, like ID.me, are now targeting deepfakes, utilizing biometrics for facial verification and liveness detection, despite privacy concerns. Carrier vetting platforms, such as FreightValidate and Carrier411, provide insights into operators’ histories—or, in many cases, the absence of a legitimate history.

Some SaaS systems, like Highway, employ machine learning to monitor phone calls and emails for signs of fraud, such as spoofed numbers and email addresses.

As the digital battle continues, some fraud detection tools are shifting to a proactive approach, executing real-time behavioral monitoring to identify subtle patterns.

The scale of freight theft is staggering—up 1,500% since 2021, according to the American Trucking Association. It’s a lot to digest, and we will need every available resource, both human and technological, to protect our supply chain.