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DOT Secretary Sean Duffy signs the English Language Proficiency executive order. (Photo: Department of Transportation)

Secretary Duffy: DOT will use AI to tackle carrier identity issues

On June 27, 2025, U.S. Transportation Secretary Sean Duffy announced a comprehensive initiative to address carrier identity fraud in the trucking industry, leveraging artificial intelligence (AI) to enhance enforcement and accountability. The announcement, made during an episode of FreightWaves’ WHAT THE TRUCK?!? with host Tim Dooner, detailed a multi-faceted approach to tackle issues like double brokering, virtual addresses, and the illegal sale of Motor Carrier (MC) numbers, which contribute to freight fraud and safety concerns.

The Department of Transportation (DOT), through the Federal Motor Carrier Safety Administration (FMCSA), plans to deploy AI tools to identify patterns of fraud, such as carriers operating under assumed identities or rented MC numbers. This initiative responds to a directive from President Trump in April 2025, which called for a nationwide audit of non-domiciled Commercial Driver’s Licenses (CDLs). The audit aims to scrutinize state procedures for issuing these licenses to ensure compliance with federal standards and eliminate abuse. Duffy emphasized that these measures would enhance safety by cracking down on unqualified drivers posing risks on U.S. roads.

Additionally, the initiative includes a pro-trucker package addressing industry challenges like parking shortages and bad brokers. It proposes increased funding for truck parking projects, work-hour flexibility, and the removal of speed limiters, aiming to improve driver conditions and operational efficiency. The DOT is also revising the DataQs system to ensure due process for drivers challenging violations, further supporting fair treatment in the industry.

Duffy’s announcement underscores the DOT’s commitment to using advanced technology to clean up the trucking industry, ensuring transparency and accountability. By integrating AI, the DOT aims to streamline processes, reduce fraudulent activities, and foster a safer, more reliable freight ecosystem. This initiative reflects a strategic response to the evolving challenges in the $2 trillion freight industry, balancing technological innovation with practical support for truckers.

(Gray market carriers: AI is coming for you…)

Freight Fraud Video of the Week 🤩

At FreightWave’s Freight Fraud Symposium Brett Suma unpacked how the Wabash acquisition of TrailerHawk is changing the game for shippers and 3PLs.

Be on alert for freight fraud and cargo theft this weekend

(From the 2014 Independence Day Parade in Washington, D.C. [Photo: Wikimedia Commons])

On July 1, 2025, Sourcing Journal reported that cargo theft rates are expected to surge over the Fourth of July weekend due to tariff uncertainty and increased freight movement, according to Overhaul, a supply chain intelligence firm. Danny Ramon, Overhaul’s director of intelligence, noted that holiday weekends typically see theft rates spike by 50 to 100 percent, as cargo left unattended for extended periods becomes vulnerable. The 2025 Fourth of July, falling on a Friday, will leave warehouses and facilities unattended for three days, heightening risks.

Tariff uncertainty is exacerbating the situation, as retailers are stockpiling warehouses to prepare for potential trade disruptions, making them prime targets for thieves. This stockpiling, driven by fears of new tariffs, has led to fuller warehouses and more cargo on roads earlier than usual, ahead of the holiday and back-to-school seasons. Salesforce data indicates that nearly one-third of U.S. consumers are also frontloading purchases due to tariff concerns, increasing the value of goods in transit and potential returns for thieves. Overhaul projects a 22 percent year-on-year increase in cargo theft by the end of 2025, with steady rises observed in the first half of the year compared to 2024.

Ramon highlighted that thieves target high-value items like electronics and apparel but will steal nearly anything due to the ease of selling goods on e-commerce platforms, which reduces intermediaries and boosts profits. To mitigate risks, Overhaul advises clear communication of holiday hours within supply chains, ensuring no deliveries are scheduled when facilities are closed and discouraging drivers from parking outside facilities during the holiday weekend. These measures aim to reduce opportunities for theft during this high-risk period, as the combination of economic uncertainty and increased cargo movement creates a perfect storm for criminal activity in the freight industry.