Overhaul’s FraudWatch: a new paradigm in freight fraud prevention

Freight fraud has emerged as one of the most rapidly growing and financially devastating risks in today’s global supply chain landscape. With global cargo theft losses exceeding $80 billion in 2023 and the average cost of a successful fictitious pickup surging to $365,000 per incident in Q1 2024, the industry has been desperately seeking more effective solutions. Enter Overhaul’s FraudWatch, a winner of the 2025 FreightWaves Fraud Fighter Awards, which has revolutionized the approach to freight security.

Unlike traditional tools that focus on recovery after theft has occurred, FraudWatch breaks new ground by proactively identifying and stopping fraud attempts before they can impact the bottom line. This shift from reactive to preventive risk management marks a breakthrough in how the industry combats increasingly sophisticated cargo theft schemes.

“It is a team sport; you need everyone involved in your supply chain to be actively involved in combating fraud for your efforts to be successful,” Overhaul wrote in its application materials. “Knowing who is working to keep your supply chain secure is only possible with granular visibility. You can’t make assumptions or hope for the best: it’s about using real data and real visibility to stop fraud in its tracks.”

At its core, FraudWatch offers real-time, pre-shipment risk detection powered by Overhaul’s AI-driven Intelligence platform. The solution verifies carrier and driver identities, flags suspicious behavior, and prevents loads from being assigned to bad actors before theft can occur.

FraudWatch analyzes data across Overhaul’s global shipment footprint and employs advanced machine learning and natural language processing to detect red flags—whether it’s mismatched booking data, suspicious communications, or a newly registered MC number with no verifiable history. It then delivers real-time risk scores and fraud alerts directly into existing transportation workflows, making prevention both scalable and actionable.

What truly sets FraudWatch apart is its two-step verification process. It is “the only carrier verification and fraud detection solution that delivers two-step verification to eliminate threat of double brokering – carrier/driver verification at point of carrier assignment and again at point of shipment pick up.” This comprehensive approach provides an unprecedented level of security in an increasingly high-risk environment.

The impact of FraudWatch has been significant. The solution is market-tested on thousands of shipments, saving customers over $100 million in potential losses during its early adoption phase in 2024 alone. In fact, 14% of all U.S. motor carriers that FraudWatch screens at pickup are flagged as high-risk—7% identified as potential bad actors and 12% found to be operating without proper FMCSA authority.

These findings illustrate how widespread fraud risks remain, even among seemingly vetted carriers. FraudWatch’s secondary screening at pickup—a key differentiator—adds an extra layer of protection, preventing significant losses that would otherwise go undetected. In early deployment, 8% of FraudWatch-enabled shipments encountered a high-risk carrier, driver, or double-brokering attempt—risks that were proactively stopped before the load was compromised.

The solution integrates with Overhaul’s broader security infrastructure, enabling escalation to internal intelligence and recovery experts for further investigation and coordinated law enforcement engagement when a fraud pattern is detected. This full-spectrum approach—monitor, detect, verify, and escalate—gives logistics providers a level of control and confidence previously unattainable in the freight industry.

“The only way fraud will stop/decrease is if the criminals start getting caught in the act,” Overhaul emphasized, highlighting the importance of their coordinated approach to fraud prevention.

Overhaul’s commitment to freight security extends beyond technology. In a notable case, their watch officers noticed suspicious markings on a tractor that had arrived to pick up a customer’s freight. Upon investigation, they discovered that “the carrier whose name was on the side of the tractor was not the actual carrier, and that the carrier listed on the side of the tractor did not operate in the same state as the origin location.”

As a result, they turned the driver away and cancelled several loads that were scheduled to be picked up by the same fraudulent carrier. “Had they left the origin, our client would never have seen those 6 truckloads again,” Overhaul explained.

In another significant collaboration, Overhaul supported the California Highway Patrol and the San Bernardino Police Department in an investigation that led to major arrests in auto theft and drug trafficking. The team worked closely with BNSF security leads and law enforcement agencies to recover products for multiple customers, demonstrating their capability to not only prevent fraud but also assist in the recovery of stolen goods when necessary.

Looking ahead, Overhaul cautions that “the future of fraud will be technology enabled.” They have observed technology driving fraud into new methods including document forgery, and as technology, including AI, advances, they anticipate it being used more extensively in fraudulent activities. “One likely development on the near horizon is the use of AI bots to cast a wider net when phishing or AI avatars to be used in video verification calls,” they warn.

For companies looking to protect themselves against these evolving threats, Overhaul recommends getting “plugged in to the industry, attend events, work with organizations like Overhaul that can seamlessly connect you with Law Enforcement and teach you how to protect yourself.” They also emphasize the importance of industry collaboration: “Work together, share intelligence and best practices, be transparent.”

FraudWatch’s launch represents not just a technological milestone but a strategic response to an urgent industry challenge. By combining AI, real-time data, and deep industry expertise, FraudWatch has set a new standard for proactive, intelligent risk management in the supply chain. In an era where digital impersonation, phishing scams, and fictitious pickups are becoming more common—and more costly—Overhaul’s innovative solution provides the industry with a powerful weapon in the fight against freight fraud.

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