Ownership Attestation

Change in ownership fraud is an increasingly prevalent threat in the freight brokerage industry. Traditionally, motor carriers (MCs) develop trust with brokers over years of reliable operation. However, when an MC sells its business, whether for legitimate reasons or otherwise, and the change of ownership is not properly disclosed, brokers can be unknowingly exposed to significant risk. In these instances, the new owners, potentially malicious actors, inherit the prior carrier’s reputation, relationships, and authority to haul freight.

This fraudulent practice has been exploited by organized crime syndicates. By acquiring a trusted MC, these actors gain access to brokerage networks and appear as longstanding, reputable carriers. They leverage this illusion of continuity to identify and steal high-value freight. Often, they maintain normal operations briefly to remain undetected, then coordinate theft of multiple loads, particularly on long-haul routes, before disappearing, leaving brokers and shippers with significant losses.

This type of fraud has emerged as a pressing concern in recent years. The subtlety of ownership transition fraud means even experienced professionals can be caught off guard. Recognizing the critical nature of this threat, it’s essential for brokers to have tools that detect signals of such ownership changes, helping them proactively safeguard their operations.

The Ownership Attestation tool leverages a set of carefully identified signals and algorithmic patterns that align with a potential change in ownership. While not every signal confirms a change, these patterns often surface when ownership shifts occur. Once such patterns are detected, the motor carrier is flagged as requiring attestation to verify ongoing ownership.

When a carrier is flagged, it triggers a rule within Highway that temporarily disqualifies the carrier until ownership attestation is completed. This rule prompts communication to the carrier’s account managers, notifying them that the registered owner must log in and affirm their ownership.

Upon the owner’s next login, they will need to verify their identity through a government-issued ID and selfie check. They must then attest via a legal document that they remain the rightful owner and assume responsibility for the carrier’s actions. If they instead confirm that ownership has changed, Highway will mark the carrier with an Identity Alert, resetting their standing, so brokers can re-evaluate the new ownership before proceeding.

A: Highway employs a proprietary algorithm designed to detect patterns associated with a potential change in ownership. While some signals are openly discussed, others are intentionally kept confidential to prevent exploitation by bad actors. Additionally, the specific signals used evolve over time, as we continuously adapt to new patterns in fraud. As a result, there is no static or published list of signals, ensuring that our detection remains effective against emerging threats.

A: In the event of a legitimate ownership change, the current owner will need to log in, complete an identity verification, and attest via a legal document that they remain in control of the motor carrier. Once completed, the carrier will regain full platform access, and no rules will block their operations.

A: The ownership attestation process typically takes less than two minutes. Once the attestation is completed, any previously failing rules for the carrier will immediately pass, restoring normal operations.