Key Takeaways

  • Leverage of Verified Location Data: Freight brokers can significantly reduce carrier fraud and improve supply chain integrity by leveraging verified location data from trusted real-time transportation visibility platforms.
  • Operational Security Enhancement: Implementing verified location data allows freight brokers to authenticate shipment locations, prevent double brokering, and ensure carrier compliance, enhancing operational security.
  • Education and Transparency: Educating staff and building transparent relationships with carriers, along with choosing reputable data sources, are crucial steps in effectively combating carrier fraud and safeguarding freight operations.


When a freight broker is tasked to be an intermediary between shippers and carriers, they are entrusted with the responsibility and liability of ensuring that shipment’s success. While technology has streamlined many processes to improve freight brokerage performance, it has also given rise to new challenges, particularly in the form of carrier fraud. One effective strategy for freight brokers to protect themselves from such fraudulent activities is by leveraging verified location data.

Understanding Carrier Fraud

Carrier fraud within the freight industry can take various forms, including falsifying shipment locations, double-brokering loads, or even using fake carrier credentials. These fraudulent activities can result in legal problems, financial losses, damaged reputations, and disrupted supply chains. To mitigate these risks, freight brokers need the right tools and strategies, and verified location data can be a powerful ally.

Verified Location Data Explained

Verified location data refers to information about the real-time or historical geographical position of carriers and their shipments that has been confirmed and authenticated by trustworthy sources, such as a real-time transportation visibility platform (RTTVP). The RTTVP data is obtained and verified directly from the transportation assets via GPS, ELD, API Integration, and a mobile app for drivers.

Four Ways to Defend Your Brokerage

Protecting Against Falsified Shipment Status

One of the primary ways freight brokers can utilize verified location data is to ensure the authenticity of shipment locations. Using an RTTVP as a single connection to location data from all your carriers’ assets, brokers can receive accurate and up-to-date information about the exact location of the freight in transit. This enables brokers to easily work with carriers, regardless of tracking method, and cross-verify any reported locations with the verified data, reducing the risk of carriers falsifying their location status. This can also help verify the carrier asset is in plausible proximity to meet the expected pick-up time on a pending load.

Preventing Double Brokering

Double brokering occurs when a carrier, without the knowledge of the original broker, sells the same shipment to another carrier or broker. This can lead to confusion, delays, and financial losses. Verified location data helps in preventing double-brokering by providing brokers with real-time information about the movement of the freight. If a discrepancy arises between the reported and verified locations, brokers can quickly identify potentially fraudulent activities and take corrective measures.

Ensuring Carrier Compliance

Freight brokers often rely on carriers to comply with specific terms and conditions outlined in their contracts. Verified location data can be used to monitor carrier compliance by tracking the agreed-upon routes and delivery timelines. Any deviations from the agreed-upon parameters can raise red flags, prompting brokers to investigate further and potentially avoiding fraudulent scenarios. Freight brokers can also use this data to validate and appeal any detention claims in question.

Defending Against Spoofed Location Data

Recently, some bad actors have managed to spoof location data via mobile app updates. A driver app can report consistent pings as on-time or arrived, but in reality, the freight may be lost, stolen, or the bad actor may have intentions of holding the freight hostage. This creates a focus on the ability to trust your data. For this reason, Descartes MacroPoint™ has announced a new feature, included as part of their RTTVP, to defend against hi-tech fraud of this nature.

FraudGuard AI by Descartes MacroPoint™ evaluates billions of location and event data points submitted by carriers to look for potential fraud. If data is detected as fake or spoofed, meaning it is not accurately representing the location or status of the load, the tracking update will be blocked, and the user will be notified of the potential issue.

It is important to understand the intention is not to just punish bad carriers, but to embrace and highlight good carriers as a critical partner in success. That means using technology to empower, measure, and reward performance, which in return helps raise the tide for everyone. For this reason, Descartes MacroPoint releases a semi-annual list of top carriers to celebrate those who achieve high levels of compliance and performance in line with the top 1% of the Descartes MacroPoint carrier network.

How to Get Started

Choosing Reliable Data Sources

To fully harness the power of verified location data, freight brokers must collaborate with reliable and reputable data providers. Real-time transportation visibility platforms that authenticate location data can be valuable partners. Brokers should prioritize providers with a proven track record, high carrier adoption, and robust security measures to ensure the integrity of the data they receive.

Educating Staff and Partners

Implementing a comprehensive strategy to combat carrier fraud goes beyond technology; it involves educating staff and fostering a culture of vigilance. Brokers should train their teams to recognize potential signs of fraud and emphasize the importance of verifying location data. Additionally, building strong relationships with carriers based on trust and transparency can deter fraudulent activities.


As the freight industry continues to evolve, so do the challenges it faces, particularly in the realm of carrier fraud. Freight brokers must proactively adopt advanced technologies and strategies to protect their businesses and maintain the integrity of the supply chain. Leveraging verified location data emerges as a critical tool in this fight, enabling brokers to validate the authenticity of shipment information, prevent double brokering, ensure carrier compliance, and ultimately build a more secure and resilient freight ecosystem. By embracing these technological advancements, freight brokers can navigate the complex landscape of carrier fraud with confidence and safeguard the future of their operations.

If you are interested in learning more, schedule a demo and speak with a MacroPoint team member.