Red Flags When Vetting a New Carrier

Why Carrier Vetting Matters

Freight fraud is on the rise. Double-brokering, identity theft, and cargo theft have become major problems in the industry. A few minutes of due diligence can save you from a catastrophic loss.

Here are the red flags experienced brokers watch for.

Authority & Registration Red Flags

1. Brand New Authority

An MC number less than 90 days old isn't automatically disqualifying, but it requires extra scrutiny. Fraudulent carriers frequently obtain new authority, run scams, then abandon it.

What to check: When was the authority granted? Is there any operating history under a different MC?

2. Recently Reinstated Authority

A carrier whose authority was revoked and recently reinstated deserves closer examination. Why was it revoked? Insurance lapse? Safety violations? Complaints?

3. No Power Units or Drivers Listed

If FMCSA shows 0 power units and 0 drivers, the carrier may exist on paper only. Legitimate carriers have equipment.

4. Mismatched Information

The address on FMCSA doesn't match their email domain. The phone area code doesn't match their listed state. The contact name doesn't match their authority filing. These discrepancies warrant investigation.

Insurance Red Flags

5. Minimum Insurance Only

A carrier with exactly $750,000 in liability coverage (the federal minimum for most freight) and nothing else may be undercapitalized. Established carriers typically carry more.

6. Insurance Effective Date = Recent

If their insurance policy started last week, pair that with other red flags. New insurance alone isn't concerning, but combined with new authority and no operating history, it's a pattern.

7. Unable to Provide Certificate of Insurance

Any legitimate carrier can produce a COI on request. Reluctance or delay is a warning sign.

Operational Red Flags

8. Willing to Haul Anything, Anywhere, Immediately

Real carriers have lanes, equipment types, and schedules. A carrier that's suspiciously flexible — "Yeah, we can do that, no problem" for every request — may not actually have trucks.

9. Below-Market Rates

If a carrier's rate is significantly below market, ask why. Legitimate carriers know what lanes cost. Fraudulent operators undercut to win the load.

10. Pressure to Move Fast

"We need the rate con in the next 10 minutes or we're moving on." Urgency is a social engineering tactic. Legitimate carriers don't need to rush you past your vetting process.

11. Communication Only Via Personal Email

Carriers using only Gmail, Yahoo, or Hotmail addresses without a company domain aren't necessarily fraudulent — many small carriers operate this way. But it's another data point in your risk assessment.

Safety Red Flags

12. High Out-of-Service Rates

If a carrier's driver or vehicle OOS rate is significantly above the national average, their equipment and/or drivers are being pulled off the road at inspections. That's a safety and reliability risk.

13. Unsatisfactory Safety Rating

This one is straightforward. FMCSA has found their safety management inadequate. Proceed with extreme caution, if at all.

14. Pattern of Complaints

Check FMCSA's complaint history. A carrier with multiple complaints about cargo damage, non-payment, or service failures is telling you who they are.

Your Vetting Checklist

At minimum, before booking a new carrier:

• Verify MC/DOT authority is active on FMCSA
• Confirm insurance is current and adequate
• Check how long they've been operating
• Review safety scores and inspection history
• Verify contact information matches FMCSA records
• Google the company name and phone number
• Request and verify a Certificate of Insurance
• Call the carrier's insurance company to confirm the policy

No single red flag is necessarily disqualifying. But when multiple flags appear together, walk away. There are plenty of legitimate carriers on the road.