The freight industry is undergoing a transformation reminiscent of fintech's early days, where Plaid connected bank accounts to lending decisions. Now, Highway is building the verification rails for trucking, as cargo theft evolves from double-brokering to direct schemes. According to FreightWaves, Highway's Chief Commercial Officer Michael Caney stated, “Highway is Plaid. Highway is allowing a user, a carrier user, to say: ‘We’re asking the question — are you willing to tell the truth about who you are? And are you willing to let the world know if something changes?’ And when they’re not, that’s a tell.”
The Changing State of Freight Fraud
The nature of cargo theft has shifted dramatically. Double-brokering schemes, once the dominant threat, have given way to direct theft, FreightWaves reported. This shift is partly due to identity verification tools from Highway and others that have made impersonation more difficult. “The reason that we see direct theft rising is because it’s no longer easy to impersonate a carrier,” Caney said. “We’ve made it harder. You actually have to be picking up freight for a while.” The challenge now lies in detecting when legitimate carriers “break bad.” Highway monitors roughly 2.5 million loads a month, watching for behavioral anomalies that signal trouble: a five-truck operation suddenly booking 100 loads, unfamiliar carriers moving into high-value commodity lanes, or sudden spikes in user additions. “There are things that you can detect where you say, ‘Man, that guy’s gonna start stealing freight soon,’” Caney added.
Detection and Enforcement
Chameleon carriers—operations that shed identities to escape enforcement history—are another persistent threat. Caney argues detection is straightforward when carriers must verify principal ownership through facial recognition, provide real names without VPN masking, and match VINs on electronic logging devices against scheduled auto policies. “Not all electronic logging device providers are created equal,” Caney said. Highway has begun shutting off data feeds from providers that fail its integrity standards, telling one recently: “If you don’t change the way that you send data, we’re gonna say that any connected ELD through this particular provider is no good and brokers shouldn’t trust it.”
Economic Pressures Behind Fraud
Behind the fraud epidemic lies an uncomfortable economic reality. For years, shippers squeezed rates to the point where some brokerages operate on 3 to 4 percent gross margins—not EBITDA, but actual gross margin. “When shippers [were] providing the rates, and there’s some brokerages operating out there at 3 and 4 percent gross margin—barely breaking even, they’re just trying to stay in business—their incentive alignment’s off,” Caney said. “Shippers have pushed it till it’s breaking.” That pressure cascades downward. Carriers can’t afford compliance investments. Non-domiciled and limited-term CDL holders account for a disproportionate share of stolen loads. Fraud itself has become professionalized, requiring more working capital to operate, meaning bad actors must target higher-value shipments. “Fraud’s a business,” Caney stated. “It’s organized, it is well thought out, there’s technology behind it, and it now costs more to run a fraud business.”
Enforceable Standards vs. Data Commentary
Caney offered five key points during a recent conference appearance. One stood out: “Data shows you risk, but it doesn’t prevent it.” The solution, he argues, lies in making the transaction itself the enforcement point. Highway’s platform goes beyond passive data analysis by integrating identity verification into the booking process, effectively creating an “enforceable standard” that can stop fraud before a load is stolen.
| Highway Monitoring Metrics | Value |
|---|---|
| Loads monitored per month | 2.5 million |
| Brokerage gross margin squeeze | 3–4% |
| Primary theft shift | From double-brokering to direct theft |
| Key detection methods | Geocoding facilities, behavioral anomaly detection, ELD data integrity checks |
What This Means for Your Procurement Team
For procurement and logistics directors, the message is clear: relying solely on data commentary without enforceable verification leaves shippers exposed. Highway’s approach—tying identity verification to the transaction itself—mirrors how financial services reduced fraud. The same technology that made impersonation harder is now forcing fraudsters to become legitimate carriers before they “break bad.” The implication is that shippers should evaluate identity verification platforms not just for data insights but for their ability to enforce standards across the supply chain. As fraud becomes more organized and costly, procurement teams must ensure their broker and carrier vetting processes include real-time behavioral monitoring and direct data feed enforcement.
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