Trucking Companies: The New Target for Scammers
In the wake of COVID-19, the trucking industry has seen a marked increase in fraud and scams. Here’s what’s going on
The dangers of the COVID-19 novel coronavirus pandemic don’t end at health risks. The confusion caused by the situation is leaving many people vulnerable to scams, and con artists have noticed. There’s been a considerable increase in fraud targeting some of the most-needed industries in these times.
The logistics industry is more critical than ever as the nation faces widespread supply shortages. That’s why it’s also more crucial that trucking companies defend against fraud. In the middle of all the coronavirus confusion, there’s a growing number of scams targeting truckers.
CARES Act Fraud
The recently passed CARES Act provides small businesses with loan forgiveness. While this program is undoubtedly helpful to small trucking companies, it also presents the perfect opportunity for scammers. There’s been a substantial amount of fraudulent calls offering loans and taking advantage of business owners seeking help from the CARES Act.
Logistics companies applying for support from the CARES Act may inadvertently disclose sensitive information to these scammers; many may not think twice about releasing credit card information or Social Security numbers to these callers. Since they’re already expecting opportunities for loan forgiveness, they’re more susceptible to calls falsely claiming to offer it.
Identity Theft
Fraudulent CARES Act calls aren’t the only trucking scams going around right now. In January, the Better Business Bureau (BBB) warned of a repackaging scam that stole a local trucking company’s name. Impersonating Westerman’s Express, the identity thieves offered fake work-from-home positions.
The impersonators offered people $3,000 a month to repackage and reship items, a relatively common type of scam. The people posing as legitimate logistics companies often steal their victims’ credit card numbers in the process. At the same time, the actual companies can lose the trust of their customer base.
As more people lose their jobs because of the coronavirus pandemic, they’re more likely to fall for these scams. In their desperation, they might accept any job offer without checking to see if it’s legitimate. Trucking companies should be on the lookout for increased identity theft during this time.
Cyberattacks
The trucking industry predates the digital age, but that doesn’t mean it isn’t susceptible to digital crime. Recent scams targeting truckers include cyberattacks, as seen in the Total Quality Logistics (TQL) data breach. In February, hackers infiltrated TQL’s systems and stole data about thousands of customers.
The data breach included customer Social Security numbers and bank information. It was so significant that it inspired a class action lawsuit against TQL, claiming more than $5 million in damages. Cyberattacks like this have always been a threat, but with the opportunities opened by COVID-19, they’re becoming more frequent.
Protecting Against Trucking Scams
The coronavirus pandemic may have caused an increase in trucking scams, but logistics companies aren’t defenseless. As with many things, prevention is better than a cure. If trucking companies can identify possible threats early, they can stay safe from fraud and cyberattacks.
The first step in identifying scams is knowing about common ones. By staying informed about them and knowing ways other companies have fallen victim, trucking companies can learn what to look out for. All logistics operations should keep their ear to the ground about emerging scams.
Truckers should verify everything, even if a deal looks legitimate. Whenever a company receives an offer or call, especially from an unknown source, it should look into its validity before making a deal. Since identity theft is a prevalent threat, this applies to known sources, too.
To protect against cyberattacks, logistics companies should practice safe internet behaviors such as not clicking on suspect links, using multifactor authentication and implementing anti-malware software. Larger companies may even consider turning to an external cybersecurity vendor.
No One Is Safe From Scammers
There’s no single target that scammers go after. Everyone, from family-owned trucking businesses to multinational logistics companies, is at risk. Despite these rising threats, if companies stay informed and practice preventive measures, they can continue to work safely.
