March 11, 2025 • 23 mins
Freight fraud is escalating at an alarming rate. Cargo theft, double brokering, and identity fraud have increased by 500% year over year, leaving brokers and carriers struggling to stay ahead.
In this episode of Everything is Logistics, host Blythe Brumleve sits down with Reid Clements of Highway to discuss how identity verification technology is preventing fraud before it happens.
Key Topics:
- The biggest fraud threats in freight today
- How criminals are buying fake MC numbers for as little as $300
- AI-driven fraud, including voice cloning and FMCSA hacks
- How Highway’s single sign-on system is eliminating fraud
- Real-time risk detection and carrier verification tools
This conversation is essential for brokers, carriers, and anyone in freight who wants to avoid costly fraud.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Unknown (00:00):
Welcome
Blythe Brumleve (00:05):
into another episode of everything is
logistics, a podcast for thethinkers in freight. I'm your
host, Blythe Milligan, and weare proudly sponsored by SPI
logistics, and we've got anothergreat show for you live at
manifest, the future of supplychain and logistics. And we've
got Reed Clements from Highway,who I've been trying to get on
this show for a very long time.
It's not without effort. We justkept missing each other. But now
we're here. We're
Reid Clements (00:28):
here. We got it.
Thank you. Thank you so much.
Really happy to be hereabsolutely now,
Blythe Brumleve (00:32):
what do you do for highway? For those who've
been living under a rock, whatdo you do for highway? And then
what does highway do for othercompanies? Yeah, I
Unknown (00:38):
am on the sales team. I think my title is sales. I don't
know if we have other titles,but sales account executive, I
knew I had something formal, butsales, so I'm talking to
brokerages day in, day out,sharing the gospel of highway.
And then to your other question,what is highway? We are an
identity and access managementprovider to help brokers and
(00:58):
carriers connect via a seamlesssingle sign on experience.
That's the formal and then whatwe actually do is we help
carriers on board to brokeragesvia a single sign on experience,
kind of like when you press siteinto Google to get YouTube TV.
We want to help carriers get toapproach experiences like that,
and at the same time, eliminatefraud. If you're to dive in, I'm
(01:19):
ready to go deep here. Allright, all right, all right. So,
so fraud became a big problem.
Post pandemic, really pandemic.
Post pandemic, when freight gota big highlight on it, like
everyone in the entire world sawthe word supply chain, and then
supply chain got very popular.
And with popularity, you havethe good guys and the bad guys,
the good actors, bad actors, thebad actors saw fraud as a golden
like, golden egg, like, whywould I not try this? Because
(01:41):
fraud lives in a environmentwhere there's kind of three
things are necessary, prospectof gain, right? What can I get
from this? And in freight, it'sthe actual freight. Let me steal
this Anheuser Bucha load, orthis, these, I think I saw a
report eggs were stolen lastweek. So if prospect of gain,
what is the actual freight? Howmuch money can I make from it?
Whether it's double broken theload and getting a small load
(02:01):
and getting a small cut orstealing the load and getting
100,000 a million dollars worthof freight there. So prospective
gain, you have anonymity. We'rewe've all lived in the broker
lifestyle. We know how brokerswork. At the end of the day,
you're picking up a phone andtalk to someone over the phone.
You're emailing them. You're notshaking their hand in a coffee
shop and saying we're going todo business together, more often
than not, you post a load andyou have 100 carriers calling
(02:23):
you, so you have no idea whothey are. So it's a big
anonymity aspect to it. And thethird would be cost of your
gain, anonymity, urgency infreight, every single broker is
doing 100 things at once for allof their customers, and the game
of speed. So is this valuable?
(02:43):
You don't know me, so there'slow risk. And with urgency comes
air. Human error is having toofast. So frog became rampant.
How he came in to solve theproblem. Now, from
Blythe Brumleve (02:54):
what I understand, you guys connect
into the VIN number. Or is thathow it
Unknown (03:00):
works? Yeah, they're bunch of different ways. So the
first is, who is this person?
Are they? Do they belong here?
So are you human? Are you whereyou're supposed to be? Do you
have permission to be here fromthe carrier level? And then you
go deeper and look at their MC,D, O T to say, Do you have the
authority? Do you have theinsurance necessary to hold my
freight, that
Blythe Brumleve (03:18):
kind of thing?
So on board them, so they're onboarding a carrier onboarding,
even
Unknown (03:21):
just looking it up like before you onboard, is this the
right person? Okay? And thenthen you have the VIN level
data, which we get from multipleavenues. But then the COI, the
insurance cert itself, will listthe VINs. What we do, that's
proprietary, is connected tocarries. ELD, so if you have 10
trucks and you're on Sam, Sarah,or motive, or what have you,
ELD, we connect to the ELDaccount to say you do have 10
(03:43):
trucks, and here they are, andthere's the bins listed, or you
claim to have 10 there's onlyone truck that's moved in the
past seven days. Like, Where's,where's the rest of the trucks?
Why aren't there in yourinsurance policy? Why are you
planning 10, but you're lying,or vice versa. Why are you
planning 10 without 80? What'sgoing on here?
Blythe Brumleve (03:56):
That's I saw one of y'all demos at freight
waves. Yeah, it was somebody, Iguess, one of these carriers was
saying that they're going tocover like 12 different loads,
and then you only had eighttrucks, and so that put it up, I
guess, higher on your dashboardand highway, if you have a
highway account, correct me, ifI'm wrong, but it's like a
dashboard, and then in thedashboard, that priority item
(04:19):
goes up to the Top, yeah, warnyou that this person might not,
they might
Unknown (04:23):
Exactly. Oh, you got it, yeah. It's a trigger warning
for for anyone to know. And thatspecific news, we call it an
overbooked carrier alert. Likethe guy has eight trucks. He's
booked 12 loads from 12different brokerages. Each
broker thinks you're booking oneload with HR carrier, which is
what you're supposed to do. Likeyou wouldn't book 12 loads of
the eight truck carrieryourself, but 12 different
brokers have now booked to thiseight truck carrier, and he
(04:45):
accepted all 12 loads. Since wehave a network effect of serving
these brokers, we can see thatthis eight truck carrier has
booked 12 loads that are goingall across the country. If it
was like chatting to Atlanta,it's possible, right? But we're
not going to trigger an alert,because they're short hauls. You
can do more than. Unloading day.
But if it's more than x percentor X number of miles, if it's
within this same schedule,pickup delivery date, you're
(05:06):
gonna get an alert he'soverbooked his
Blythe Brumleve (05:09):
assets. What's the craziest type of fraud
you've seen so far
Unknown (05:13):
in terms of, like, manipulative activity, or like
stolen freight, or like helpslipped through
Blythe Brumleve (05:18):
manipulative and the craziest, like load that
was stolen. Yeah, trying to bestolen. I'm
Unknown (05:23):
not gonna go specific on the type of freight or the
customer, but the higher thevalue of freight, the more eyes
on it, the more the FBI getsinvolved, of course. So the
easiest thing I can think of is,like precious metals or alcohol,
stuff like that that are if yousteal the load, it's easy to
resell that. You take it acrossthe border and people want to
buy that kind of thing. Ofthing. So those are always the
(05:45):
hot ticket for automation. Youshould always be on red alert.
The higher the value, the morered alert you should be on. From
that perspective, then, in termsof creativity, to manipulate
something, you have the VoIPphone numbers. That's a very
easy indicator. If you're atruck driver, why do you have a
VoIP instead of a cell phone?
Right? It's pretty simple. Thethe fraudulent phone numbers
themselves, instead of a VoIP,it's a phone number, but you
(06:08):
scoop the phone number, you canget an app and change your phone
number to recalling or thefraudulent emails. The biggest
you put a zero and seven, Oh,who's going to look at that in
an email or an l7 I lower, yeah,it's stuff like, That's wild.
And then the more creative,like, the more sophisticated
hacking the FMCSA, changing theFMCSA information, which is what
(06:29):
everyone uses the source oftruth for so long, but now you
think you're talking the rightperson, but your FMCSA data was
just hacked, and it's thefraudster who's impersonating
the good guy. The good guyscrewed. The broker worker with
the good guy screwed. There's amess. And
Blythe Brumleve (06:44):
how does that work? If, like, the FMCSA gets
hacked, do they alert everyonethat they've been hacked? Or
probably not, like, how doesthat?
Unknown (06:52):
I'm not going to speak ill of the government, but you
know, they don't know half thetime, right? Why would the FMCSA
know that this person who'strying to log in and change a
couple things. Okay, okay,they're requesting a new code to
change your password and get in,or something like that. Or, I
think Jordan, our founder,talked about this like, a year
(07:13):
ago, but there's some reallysophisticated crime rings that
downloaded the entire from CSAdatabase and did a query to
search any misspelled email,because at the end of the day, a
carrier or you and I couldmisspell our own email when
signing up with the government.
And then that's your formalemail. Or you sign up for an
email you misspelled ityourself, right? And then
they'll find those queries ofemails that were just one letter
(07:34):
off or something. And thenthey'll make the correct email,
so that when you're looking themup, are you talking the right
person, the wrong person, theright person is actually the
wrong email. But you don't thinkthat. Why would you talk the
wrong email? So there's,
Blythe Brumleve (07:46):
how are y'all, I guess I with all of these,
like, new, you know, sort of AIvoice cloning type things. How
are you guys prepared to helpwith that type of level of
fraud? Because that was one ofthe things as a podcaster, I
knew about sort of my voicecloning for a long time, that I
could go and I could get thisdone for 30 seconds for $10 a
(08:08):
month, right? But now other,many more people are going to
have access to this technologyall across the globe. How? What
is the philosophy againstcombating that?
Unknown (08:18):
Yeah, there's a lot of avenues you can go down here,
but I'm going to take a step upand talk about the life cycle of
the load and what you can do tocombat each part. So you have
communications, you havesourcing, you have vetting,
onboarding, monitoring,tracking, and then post load,
(08:38):
delivery, gathering the correctinformation, the details on what
happened there. So that's kindof the life cycle of the load.
That's where highway wants tolive. Is every piece of the life
cycle load. So communications,first and foremost, before you
even onboard or Vedic care, youtalk to them. They email you,
they call you, vice versa. So wehave an email plugin and a phone
plugin. Email plugin lives onyour Gmail, on your outlook, on
(09:00):
your front app to give you aquick indicator. Red light your
light. Green light just a goodguy or a bad guy. Same for the
phone system. When a carriercalls in, if you have the VoIP
plug in, it lives in the phonesystem. And just like a spam
filter on all of our phones, RedAlert. This is not who you think
it is. This is a from the VoIP.
This is a spoofed phone number.
This. This phone number alreadyhas nine fraud reports on their
(09:21):
profile, and the carrier isassociated with it's just going
to block the call. Socommunications is there
sourcing? Find every singlecarrier we have your ELDs
connected. So where are yourtrucks right now? It's a good
indicator for where their trucksare right. So help you find the
right capacity. Are they passingor failing your custom risk
assessment that you host inhighway? So as soon as you look
up a carrier, green light, redlight. Use them. Don't use them.
(09:43):
Onboarding, powered by theidentity engine, right? Are you
who you say you are? It's asingle sign on multi factor
authentication process that has80 different permutations of
challenging the person on. Areyou who you claim to be or not?
Right? And if you fail, thatyou're out. I didn't even
Blythe Brumleve (09:58):
fail. I didn't think about it for. That lens,
because I thought that you guys,you know, I tried to simplify it
in my head, that you're justconnecting the carrier to the
VIN number, and then that's kindof it, and then it's up to the
broker and the carrier. Used tobe
Unknown (10:09):
that easy, right? It used to be that easy. That's
evolved. I guess you have to bea cyber security expert to
figure out all this stuff. Soyou have all that we can go very
deep with identity proofing,which is where you can take your
license out and scan it and scanit and scan the barcode, then
you put your face up and you dothe all the fun. So that's what
the Department of Defense uses,right? It's identity proofing.
Are you who you claim to be, anddo you match? So we can go as
(10:30):
deep as that. We can keep itpretty lightweight, depending on
what we know of the carrier, andthen onboarding, track and
trace, low level compliance.
It's all part of highway, yeah.
Blythe Brumleve (10:39):
What is, I guess, sort of the typical
pushback that you might get froma customer who might want to and
then how do you answer that? Our
Unknown (10:48):
biggest when I'm talking to a prospect, the
there's two reasons theywouldn't buy sophistication and
price. Price aside, we all knowprice is price? Do you bring
value? The value is there ornot? Sophistication is the other
one? We do a lot for you, andwhen a broker sends it for
highway, you're gonna understand20% of what we do, and you're
(11:10):
not gonna have any idea what 80%of it does. Then once you've
been a customer for a year,you're gonna understand 50% of
it, and 50% you'll have no ideawhat's happening that's on
purpose. Like you don't knowwhat Google is doing when you
press send into Google. Youdon't know what Wi Fi is doing.
When you log into Wi Fi, youdon't have to know. You trust
it. You work it. But I thinksophistication of you're buying
something you've never heard of,you never seen of, you didn't
know is necessary until you justlost four loads last week.
(11:34):
That's typically the pushback.
Blythe Brumleve (11:35):
And then I would imagine that for a lot of
those people who push back onprice, once they lose a few
loads. Then they, they comearound.
Unknown (11:42):
It's a boomerang. Yeah, you made some, you know, six
months ago, and then the inboxis open, respond, and we'll come
back. What
Blythe Brumleve (11:49):
is sort of, I guess, the percentage of, maybe
growth of fraud that has evolvedsince, yeah, yeah. It sounds
like it's just changing everyday.
Unknown (11:59):
I read cargo net stuff, because COVID is very popular,
and they post a lot of stats. Iwant to say, like every year
it's growing by like, 200% 300%400% but the caveat there is,
it's not 300% since 2020 it's300% over 2022 and then 500%
over 2023 and then 80% over 2024so it's not a little bit more
(12:21):
each year. It's compoundingexponentially every year.
Blythe Brumleve (12:23):
And is that because of technology or just it
because maybe some regulationsthat we lack in the United
States?
Unknown (12:29):
Yeah. I mean, maybe both. Yes, yes. I think it all
boils back to what we saidfirst, prospective gain,
anonymity, urgency. It's a hotbed for for stolen items. Like,
why would prospective gain? Youget caught often, and if you do
get caught, then your MC isbroken, like, you get
unauthorized. You're caught.
Just go buy a 300 RMC number andstart again. Is that really how
(12:50):
easy it is? Yeah, you and I canmake an MC right now. Everything
is logistics, LLC, trucking,right? We can build it. It's 300
bucks.
Blythe Brumleve (12:59):
What? Yeah, I had no idea was that easy to get
it. Had to get a CDL or and thenMC the bear to
Unknown (13:06):
entry is very low, which
Blythe Brumleve (13:07):
is maybe a good thing. Yeah,
Unknown (13:10):
right, nothing and everything. But yeah, any
Blythe Brumleve (13:13):
good customer stories that you can share with
us, or you can leave thecustomer name out, or case,
yeah, I mean,
Unknown (13:17):
we have public customer testimonies if you go to
highway.com hit the articles orPartners tab, whatever it is,
you can see a bunch of customerswho want to publicly announce
that they partner with highway.
And here's their stats of 90%fraud prevention or 100% fraud
prevention, which is wonderful.
They're all great stories. Allof a sudden, we're on the spot.
I know, mode just announced. ChRobins did a big announcement.
(13:41):
Finish a did one? Taylorlogistics has done one, but
they're on the website.
Blythe Brumleve (13:45):
Wow, yeah, so we'll make sure. We'll
definitely link to it in theshow notes, so you guys can
check it out. If you'veobviously been living under a
rock and have not, you know,read any of this, because you
guys are everywhere. It feelslike you're also, like,
integrated with everyone aswell. Yeah, integrations
Unknown (13:58):
are necessary because you can have a wonderful
product, and that doeseverything for you. But if it's
not integrated, then you stillhave the human error aspect,
like, did you actually do thisor not? Whereas, if it's
integrated the system, it's asystem wide, company wide
initiative, like, it's either inor it's out, it's fully
integrated. There's no, you'renot the one going in saying,
Yes, we use them, or no, wedon't. It's system wide. It's
(14:19):
integrated. So it has, I mean,that's the beauty of a full
software solution, is it toucheseverything. Where you live.
Blythe Brumleve (14:25):
What does this sort of the onboarding process
look like for a carrier, for
Unknown (14:29):
like a brokerage signing up today? Oh, maybe
both. Yeah. So carriers, singlesign on. You press into highway,
if you've been before, you gostraight to, how do I get paid
by this broker? And sign theirBCA, and you're done. So it's 20
seconds. If you've never been tohighway. It's about a four
minute process. You have to getverified, go through the full
SSO and then verify theinformation we already know
about you, locations, you runinsurance, payment details, w9
(14:51):
all the onboarding stuff. Socare. Onboarding can be 20
seconds. It can be four minutes.
We onboard like 25,000 carries aday. I think the median is 27
Seconds, and that's foreverybody, which is pretty blows
my mind. So that's Carrieonboarding, and then as a new
customer comes to Highway,depends on what CMS they're on
and on how long it's going totake. You have your great it's a
horrible word to say. You haveyour more modern TMS systems
(15:14):
that that you can integratequickly with. Yeah, exactly.
Versus rev Nova, Turbo, tiethree PL systems, guys like
that, where you can sign up forhighway and within seven days,
you're fully live, baked in, andyou're on or you have the bigger
brand names that have beenaround for forever, McCloud,
mercurygate, those types thatmay take 3060, days to get
(15:34):
integrated, because it's acarrier process. But yeah,
Blythe Brumleve (15:40):
what does, how does if I'm a broker and I'm
sitting down at my desk and Ihave my four screens that are
open, where does highway sort ofsit in my day to day? Is it? Is
it taking up one of thosescreens? And then I'm doing
other things? Yeah,
Unknown (15:53):
so let's put a couple different hats on. You're a
broker on the floor, you're acarrier app, or your Creator of
the grave highway is absolutelyone of those screens, because
part of highway is sourcingcapacity. How do I find carriers
who go from Milwaukee to DesMoines that are reefer carriers
that have smart waycertifications, that have at
least three trucks, no more than50? Because I don't want any big
fleets. I don't want any onesiesTuesdays that have 100,000 in
(16:15):
cargo coverage, insurance.
Create my filter. Here's everycarrier who runs that lane. You
meet your criteria. Are theypassing, filling my rules? So
there's a sourcing and vettingaspect to it that your your reps
are going to need. They're goingto want them. You don't have to
have them, but you're going towant that right there. Your
compliance team, ideally, isonly managing exceptions at that
point when the when your broker,who, who really wants to use
(16:36):
this carrier, be found yourrules, you're going to bubble it
up to your compliance team tosay, hey, they're fine, but it's
only for this which is not fraudrelated. Maybe it's performance
related or safety scores, butcan we use this care? And then
the compliance guy is going todig in and say, Well, normally
we wouldn't, but their ELD isconnected, so I see their truck
in Milwaukee right now, sooverride let them in. So they're
going to use it a few times aday. And then you have your
(16:57):
track and trace team, which isgoing to have it open all the
time. You have your have youryour there's different hats, and
how often they're going to useit. I wouldn't say every person
and every broker is going tohave a highway login at all, but
depending on how nuanced youwant to get and how deep you
want to go, they're going tohave the highway UI pulled up,
or they're going to be fullyintegrated through TMS. They're
just going to log into TMS tosee it right there. You can go
(17:19):
both ways. But so
Blythe Brumleve (17:21):
what happens if you discover a problem after
you've already booked thecarrier?
Unknown (17:26):
Yeah? Yeah, that's a that's a big problem, right?
Yeah. So you so the beauty ofhighway being integrated is that
we do web hook integrations, orAPI integrations to TMS systems.
It's an API integration. Itmonitors carriers every five
minutes, three, five or sevenminutes being on the TMS. So on
that schedule, you're going toget the alert insurance changed,
or CSA scores under threshold,or Fraud Report, right Fraud
(17:47):
Report, it goes from passing tofailing, integrating your TMS
like that, or you have a webhookintegration, which webhook is
push and pull, and it'simmediate. As soon as something
happens, it's immediate, theresponse is in your TMS right
there. Now to your point, youalready booked the load. Maybe
the carrier's on the load,actively, Red Alert. Like
everyone all eyes on you'recalling the carrier, what's
going on? You're tracking theELD. Where's your truck right
(18:08):
now? There's not much.
Blythe Brumleve (18:10):
I just put it two and two together. You kept
saying, like, Red Alert, greenalert, highway, the highway
lights. I just put that
Unknown (18:17):
together. Yeah. Took me a minute. I'm right there, but
it took me about a year. Soyou're like a year and 20
minutes fast.
Blythe Brumleve (18:25):
Now you came from freight waves, yeah. And
what was it? What was thereason? What it maybe is the
biggest difference betweenfreight waves and then making
the transition over to Highway,yeah?
Unknown (18:36):
So I was at freight waves for four years, and it was
wonderful. I love my time there,and I love the team, and they
put me in a position to besuccessful and get me into the
right doors, right in front ofthe right people, great mentors.
You remember a lot of people.
There are great people. Thebiggest difference is that
sonar, I was on the sonar teamdoing data for Freightways.
Sonar is a data vendor sellingyou data, and there are
solutions built off of the datathat you can purchase as well.
(18:59):
Highway is a solution, not adata vendor. So, you know, no
broker comes to highway to buyour data. You come to highway
buyer solution and enforce thatcompany wide. That's the biggest
difference, I would say,between, like, a freight wave
sonar product versus highwaySaaS solution versus data
provider. Yeah, it's
Blythe Brumleve (19:19):
all intelligence. Yeah, it's one of
those where it highway from, myunderstanding, is one of those
that you it sounds like it'sbecome very pivotal to a
broker's day or a carrier state,for
Unknown (19:30):
sure. It's definitely, it's touched frequently, for
sure.
Blythe Brumleve (19:34):
So what? What's next for highway? What do you
guys got, you know, cooking?
Unknown (19:39):
Yeah, um, there's, there's, there's, there's three
kind of big initiatives. I don'tknow what I'm allowed to talk
about, because I'm just a salesguy, yeah, we can save it for
later. Yeah, we can say forlater. There's three big ones. I
think the one that we're like, Iposted on LinkedIn about it in
response, we were rolling out acarrier product. I. Um, that's
(20:00):
free for carriers to vetbrokers. Are you talking to the
right person, or is this someonein person, the broker? What's
their days to pay, their credit,the everything about the broker,
but for carriers. So the samehighway login, when a carrier
logs in the highway now they cansee, here's all my current
brokers I work with. Let melearn more about them. Make sure
I'm doing the right person, orthey're signing up to a new
broker. Is this the right guy ornot? So it's a free product for
(20:20):
carriers to vet brokers.
Blythe Brumleve (20:22):
That's super interesting, because then you're
putting the power back intocarriers. Well, carriers
Unknown (20:25):
get hammered by all angles all the time, so we're
not going to charge for it. It'sright there for you. They're
already in the highway network.
You're already here while wecharge you for doing something
you're already doing. Just givethem some more benefit.
Blythe Brumleve (20:37):
Yeah, that's awesome. All right. Well, Reed,
I anything else that you feel isimportant to mention that we
haven't already talked
Unknown (20:43):
about, oh, we I feel like we went all sorts of
directions, which is great. Idon't know if you want to reach
out to us. Read at highwayservice, at highway support, at
highway you can get to a lot ofways. Go to our website,
highway.com, and you can get ademo. From there, a lot of
information. But
Blythe Brumleve (20:58):
yeah, yeah, better safe than sorry. Sign up
for highway, yeah, thank you.
Thanks
Unknown (21:01):
very much. Yeah. Really appreciate it.
Blythe Brumleve (21:07):
I hope you enjoyed this episode of
everything is logistics, apodcast for the thinkers in
freight, telling the storiesbehind how your favorite stuff
and people get from point A toB. Subscribe to the show. Sign
up for our newsletter and followour socials over at everything
is logistics.com and in additionto the podcast, I also wanted to
let y'all know about anothercompany I operate, and that's
(21:28):
digital dispatch, where we helpyou build a better website. Now,
a lot of the times, we hand thistask of building a new website
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than it takes to actually buildthe dang website. Well, that
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doesn't happen at Digitaldispatch. We've been building
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strong foundation. Until then, Ihope you enjoyed this episode.
I'll see you all real soon andgo Jags, you?
Welcome
Blythe Brumleve (00:05):
into another episode of everything is
logistics, a podcast for thethinkers in freight. I'm your
host, Blythe Milligan, and weare proudly sponsored by SPI
logistics, and we've got anothergreat show for you live at
manifest, the future of supplychain and logistics. And we've
got Reed Clements from Highway,who I've been trying to get on
this show for a very long time.
It's not without effort. We justkept missing each other. But now
we're here. We're
Reid Clements (00:28):
here. We got it.
Thank you. Thank you so much.
Really happy to be hereabsolutely now,
Blythe Brumleve (00:32):
what do you do for highway? For those who've
been living under a rock, whatdo you do for highway? And then
what does highway do for othercompanies? Yeah, I
Unknown (00:38):
am on the sales team. I think my title is sales. I don't
know if we have other titles,but sales account executive, I
knew I had something formal, butsales, so I'm talking to
brokerages day in, day out,sharing the gospel of highway.
And then to your other question,what is highway? We are an
identity and access managementprovider to help brokers and
(00:58):
carriers connect via a seamlesssingle sign on experience.
That's the formal and then whatwe actually do is we help
carriers on board to brokeragesvia a single sign on experience,
kind of like when you press siteinto Google to get YouTube TV.
We want to help carriers get toapproach experiences like that,
and at the same time, eliminatefraud. If you're to dive in, I'm
(01:19):
ready to go deep here. Allright, all right, all right. So,
so fraud became a big problem.
Post pandemic, really pandemic.
Post pandemic, when freight gota big highlight on it, like
everyone in the entire world sawthe word supply chain, and then
supply chain got very popular.
And with popularity, you havethe good guys and the bad guys,
the good actors, bad actors, thebad actors saw fraud as a golden
like, golden egg, like, whywould I not try this? Because
(01:41):
fraud lives in a environmentwhere there's kind of three
things are necessary, prospectof gain, right? What can I get
from this? And in freight, it'sthe actual freight. Let me steal
this Anheuser Bucha load, orthis, these, I think I saw a
report eggs were stolen lastweek. So if prospect of gain,
what is the actual freight? Howmuch money can I make from it?
Whether it's double broken theload and getting a small load
(02:01):
and getting a small cut orstealing the load and getting
100,000 a million dollars worthof freight there. So prospective
gain, you have anonymity. We'rewe've all lived in the broker
lifestyle. We know how brokerswork. At the end of the day,
you're picking up a phone andtalk to someone over the phone.
You're emailing them. You're notshaking their hand in a coffee
shop and saying we're going todo business together, more often
than not, you post a load andyou have 100 carriers calling
(02:23):
you, so you have no idea whothey are. So it's a big
anonymity aspect to it. And thethird would be cost of your
gain, anonymity, urgency infreight, every single broker is
doing 100 things at once for allof their customers, and the game
of speed. So is this valuable?
(02:43):
You don't know me, so there'slow risk. And with urgency comes
air. Human error is having toofast. So frog became rampant.
How he came in to solve theproblem. Now, from
Blythe Brumleve (02:54):
what I understand, you guys connect
into the VIN number. Or is thathow it
Unknown (03:00):
works? Yeah, they're bunch of different ways. So the
first is, who is this person?
Are they? Do they belong here?
So are you human? Are you whereyou're supposed to be? Do you
have permission to be here fromthe carrier level? And then you
go deeper and look at their MC,D, O T to say, Do you have the
authority? Do you have theinsurance necessary to hold my
freight, that
Blythe Brumleve (03:18):
kind of thing?
So on board them, so they're onboarding a carrier onboarding,
even
Unknown (03:21):
just looking it up like before you onboard, is this the
right person? Okay? And thenthen you have the VIN level
data, which we get from multipleavenues. But then the COI, the
insurance cert itself, will listthe VINs. What we do, that's
proprietary, is connected tocarries. ELD, so if you have 10
trucks and you're on Sam, Sarah,or motive, or what have you,
ELD, we connect to the ELDaccount to say you do have 10
(03:43):
trucks, and here they are, andthere's the bins listed, or you
claim to have 10 there's onlyone truck that's moved in the
past seven days. Like, Where's,where's the rest of the trucks?
Why aren't there in yourinsurance policy? Why are you
planning 10, but you're lying,or vice versa. Why are you
planning 10 without 80? What'sgoing on here?
Blythe Brumleve (03:56):
That's I saw one of y'all demos at freight
waves. Yeah, it was somebody, Iguess, one of these carriers was
saying that they're going tocover like 12 different loads,
and then you only had eighttrucks, and so that put it up, I
guess, higher on your dashboardand highway, if you have a
highway account, correct me, ifI'm wrong, but it's like a
dashboard, and then in thedashboard, that priority item
(04:19):
goes up to the Top, yeah, warnyou that this person might not,
they might
Unknown (04:23):
Exactly. Oh, you got it, yeah. It's a trigger warning
for for anyone to know. And thatspecific news, we call it an
overbooked carrier alert. Likethe guy has eight trucks. He's
booked 12 loads from 12different brokerages. Each
broker thinks you're booking oneload with HR carrier, which is
what you're supposed to do. Likeyou wouldn't book 12 loads of
the eight truck carrieryourself, but 12 different
brokers have now booked to thiseight truck carrier, and he
(04:45):
accepted all 12 loads. Since wehave a network effect of serving
these brokers, we can see thatthis eight truck carrier has
booked 12 loads that are goingall across the country. If it
was like chatting to Atlanta,it's possible, right? But we're
not going to trigger an alert,because they're short hauls. You
can do more than. Unloading day.
But if it's more than x percentor X number of miles, if it's
within this same schedule,pickup delivery date, you're
(05:06):
gonna get an alert he'soverbooked his
Blythe Brumleve (05:09):
assets. What's the craziest type of fraud
you've seen so far
Unknown (05:13):
in terms of, like, manipulative activity, or like
stolen freight, or like helpslipped through
Blythe Brumleve (05:18):
manipulative and the craziest, like load that
was stolen. Yeah, trying to bestolen. I'm
Unknown (05:23):
not gonna go specific on the type of freight or the
customer, but the higher thevalue of freight, the more eyes
on it, the more the FBI getsinvolved, of course. So the
easiest thing I can think of is,like precious metals or alcohol,
stuff like that that are if yousteal the load, it's easy to
resell that. You take it acrossthe border and people want to
buy that kind of thing. Ofthing. So those are always the
(05:45):
hot ticket for automation. Youshould always be on red alert.
The higher the value, the morered alert you should be on. From
that perspective, then, in termsof creativity, to manipulate
something, you have the VoIPphone numbers. That's a very
easy indicator. If you're atruck driver, why do you have a
VoIP instead of a cell phone?
Right? It's pretty simple. Thethe fraudulent phone numbers
themselves, instead of a VoIP,it's a phone number, but you
(06:08):
scoop the phone number, you canget an app and change your phone
number to recalling or thefraudulent emails. The biggest
you put a zero and seven, Oh,who's going to look at that in
an email or an l7 I lower, yeah,it's stuff like, That's wild.
And then the more creative,like, the more sophisticated
hacking the FMCSA, changing theFMCSA information, which is what
(06:29):
everyone uses the source oftruth for so long, but now you
think you're talking the rightperson, but your FMCSA data was
just hacked, and it's thefraudster who's impersonating
the good guy. The good guyscrewed. The broker worker with
the good guy screwed. There's amess. And
Blythe Brumleve (06:44):
how does that work? If, like, the FMCSA gets
hacked, do they alert everyonethat they've been hacked? Or
probably not, like, how doesthat?
Unknown (06:52):
I'm not going to speak ill of the government, but you
know, they don't know half thetime, right? Why would the FMCSA
know that this person who'strying to log in and change a
couple things. Okay, okay,they're requesting a new code to
change your password and get in,or something like that. Or, I
think Jordan, our founder,talked about this like, a year
(07:13):
ago, but there's some reallysophisticated crime rings that
downloaded the entire from CSAdatabase and did a query to
search any misspelled email,because at the end of the day, a
carrier or you and I couldmisspell our own email when
signing up with the government.
And then that's your formalemail. Or you sign up for an
email you misspelled ityourself, right? And then
they'll find those queries ofemails that were just one letter
(07:34):
off or something. And thenthey'll make the correct email,
so that when you're looking themup, are you talking the right
person, the wrong person, theright person is actually the
wrong email. But you don't thinkthat. Why would you talk the
wrong email? So there's,
Blythe Brumleve (07:46):
how are y'all, I guess I with all of these,
like, new, you know, sort of AIvoice cloning type things. How
are you guys prepared to helpwith that type of level of
fraud? Because that was one ofthe things as a podcaster, I
knew about sort of my voicecloning for a long time, that I
could go and I could get thisdone for 30 seconds for $10 a
(08:08):
month, right? But now other,many more people are going to
have access to this technologyall across the globe. How? What
is the philosophy againstcombating that?
Unknown (08:18):
Yeah, there's a lot of avenues you can go down here,
but I'm going to take a step upand talk about the life cycle of
the load and what you can do tocombat each part. So you have
communications, you havesourcing, you have vetting,
onboarding, monitoring,tracking, and then post load,
(08:38):
delivery, gathering the correctinformation, the details on what
happened there. So that's kindof the life cycle of the load.
That's where highway wants tolive. Is every piece of the life
cycle load. So communications,first and foremost, before you
even onboard or Vedic care, youtalk to them. They email you,
they call you, vice versa. So wehave an email plugin and a phone
plugin. Email plugin lives onyour Gmail, on your outlook, on
(09:00):
your front app to give you aquick indicator. Red light your
light. Green light just a goodguy or a bad guy. Same for the
phone system. When a carriercalls in, if you have the VoIP
plug in, it lives in the phonesystem. And just like a spam
filter on all of our phones, RedAlert. This is not who you think
it is. This is a from the VoIP.
This is a spoofed phone number.
This. This phone number alreadyhas nine fraud reports on their
(09:21):
profile, and the carrier isassociated with it's just going
to block the call. Socommunications is there
sourcing? Find every singlecarrier we have your ELDs
connected. So where are yourtrucks right now? It's a good
indicator for where their trucksare right. So help you find the
right capacity. Are they passingor failing your custom risk
assessment that you host inhighway? So as soon as you look
up a carrier, green light, redlight. Use them. Don't use them.
(09:43):
Onboarding, powered by theidentity engine, right? Are you
who you say you are? It's asingle sign on multi factor
authentication process that has80 different permutations of
challenging the person on. Areyou who you claim to be or not?
Right? And if you fail, thatyou're out. I didn't even
Blythe Brumleve (09:58):
fail. I didn't think about it for. That lens,
because I thought that you guys,you know, I tried to simplify it
in my head, that you're justconnecting the carrier to the
VIN number, and then that's kindof it, and then it's up to the
broker and the carrier. Used tobe
Unknown (10:09):
that easy, right? It used to be that easy. That's
evolved. I guess you have to bea cyber security expert to
figure out all this stuff. Soyou have all that we can go very
deep with identity proofing,which is where you can take your
license out and scan it and scanit and scan the barcode, then
you put your face up and you dothe all the fun. So that's what
the Department of Defense uses,right? It's identity proofing.
Are you who you claim to be, anddo you match? So we can go as
(10:30):
deep as that. We can keep itpretty lightweight, depending on
what we know of the carrier, andthen onboarding, track and
trace, low level compliance.
It's all part of highway, yeah.
Blythe Brumleve (10:39):
What is, I guess, sort of the typical
pushback that you might get froma customer who might want to and
then how do you answer that? Our
Unknown (10:48):
biggest when I'm talking to a prospect, the
there's two reasons theywouldn't buy sophistication and
price. Price aside, we all knowprice is price? Do you bring
value? The value is there ornot? Sophistication is the other
one? We do a lot for you, andwhen a broker sends it for
highway, you're gonna understand20% of what we do, and you're
(11:10):
not gonna have any idea what 80%of it does. Then once you've
been a customer for a year,you're gonna understand 50% of
it, and 50% you'll have no ideawhat's happening that's on
purpose. Like you don't knowwhat Google is doing when you
press send into Google. Youdon't know what Wi Fi is doing.
When you log into Wi Fi, youdon't have to know. You trust
it. You work it. But I thinksophistication of you're buying
something you've never heard of,you never seen of, you didn't
know is necessary until you justlost four loads last week.
(11:34):
That's typically the pushback.
Blythe Brumleve (11:35):
And then I would imagine that for a lot of
those people who push back onprice, once they lose a few
loads. Then they, they comearound.
Unknown (11:42):
It's a boomerang. Yeah, you made some, you know, six
months ago, and then the inboxis open, respond, and we'll come
back. What
Blythe Brumleve (11:49):
is sort of, I guess, the percentage of, maybe
growth of fraud that has evolvedsince, yeah, yeah. It sounds
like it's just changing everyday.
Unknown (11:59):
I read cargo net stuff, because COVID is very popular,
and they post a lot of stats. Iwant to say, like every year
it's growing by like, 200% 300%400% but the caveat there is,
it's not 300% since 2020 it's300% over 2022 and then 500%
over 2023 and then 80% over 2024so it's not a little bit more
(12:21):
each year. It's compoundingexponentially every year.
Blythe Brumleve (12:23):
And is that because of technology or just it
because maybe some regulationsthat we lack in the United
States?
Unknown (12:29):
Yeah. I mean, maybe both. Yes, yes. I think it all
boils back to what we saidfirst, prospective gain,
anonymity, urgency. It's a hotbed for for stolen items. Like,
why would prospective gain? Youget caught often, and if you do
get caught, then your MC isbroken, like, you get
unauthorized. You're caught.
Just go buy a 300 RMC number andstart again. Is that really how
(12:50):
easy it is? Yeah, you and I canmake an MC right now. Everything
is logistics, LLC, trucking,right? We can build it. It's 300
bucks.
Blythe Brumleve (12:59):
What? Yeah, I had no idea was that easy to get
it. Had to get a CDL or and thenMC the bear to
Unknown (13:06):
entry is very low, which
Blythe Brumleve (13:07):
is maybe a good thing. Yeah,
Unknown (13:10):
right, nothing and everything. But yeah, any
Blythe Brumleve (13:13):
good customer stories that you can share with
us, or you can leave thecustomer name out, or case,
yeah, I mean,
Unknown (13:17):
we have public customer testimonies if you go to
highway.com hit the articles orPartners tab, whatever it is,
you can see a bunch of customerswho want to publicly announce
that they partner with highway.
And here's their stats of 90%fraud prevention or 100% fraud
prevention, which is wonderful.
They're all great stories. Allof a sudden, we're on the spot.
I know, mode just announced. ChRobins did a big announcement.
(13:41):
Finish a did one? Taylorlogistics has done one, but
they're on the website.
Blythe Brumleve (13:45):
Wow, yeah, so we'll make sure. We'll
definitely link to it in theshow notes, so you guys can
check it out. If you'veobviously been living under a
rock and have not, you know,read any of this, because you
guys are everywhere. It feelslike you're also, like,
integrated with everyone aswell. Yeah, integrations
Unknown (13:58):
are necessary because you can have a wonderful
product, and that doeseverything for you. But if it's
not integrated, then you stillhave the human error aspect,
like, did you actually do thisor not? Whereas, if it's
integrated the system, it's asystem wide, company wide
initiative, like, it's either inor it's out, it's fully
integrated. There's no, you'renot the one going in saying,
Yes, we use them, or no, wedon't. It's system wide. It's
(14:19):
integrated. So it has, I mean,that's the beauty of a full
software solution, is it toucheseverything. Where you live.
Blythe Brumleve (14:25):
What does this sort of the onboarding process
look like for a carrier, for
Unknown (14:29):
like a brokerage signing up today? Oh, maybe
both. Yeah. So carriers, singlesign on. You press into highway,
if you've been before, you gostraight to, how do I get paid
by this broker? And sign theirBCA, and you're done. So it's 20
seconds. If you've never been tohighway. It's about a four
minute process. You have to getverified, go through the full
SSO and then verify theinformation we already know
about you, locations, you runinsurance, payment details, w9
(14:51):
all the onboarding stuff. Socare. Onboarding can be 20
seconds. It can be four minutes.
We onboard like 25,000 carries aday. I think the median is 27
Seconds, and that's foreverybody, which is pretty blows
my mind. So that's Carrieonboarding, and then as a new
customer comes to Highway,depends on what CMS they're on
and on how long it's going totake. You have your great it's a
horrible word to say. You haveyour more modern TMS systems
(15:14):
that that you can integratequickly with. Yeah, exactly.
Versus rev Nova, Turbo, tiethree PL systems, guys like
that, where you can sign up forhighway and within seven days,
you're fully live, baked in, andyou're on or you have the bigger
brand names that have beenaround for forever, McCloud,
mercurygate, those types thatmay take 3060, days to get
(15:34):
integrated, because it's acarrier process. But yeah,
Blythe Brumleve (15:40):
what does, how does if I'm a broker and I'm
sitting down at my desk and Ihave my four screens that are
open, where does highway sort ofsit in my day to day? Is it? Is
it taking up one of thosescreens? And then I'm doing
other things? Yeah,
Unknown (15:53):
so let's put a couple different hats on. You're a
broker on the floor, you're acarrier app, or your Creator of
the grave highway is absolutelyone of those screens, because
part of highway is sourcingcapacity. How do I find carriers
who go from Milwaukee to DesMoines that are reefer carriers
that have smart waycertifications, that have at
least three trucks, no more than50? Because I don't want any big
fleets. I don't want any onesiesTuesdays that have 100,000 in
(16:15):
cargo coverage, insurance.
Create my filter. Here's everycarrier who runs that lane. You
meet your criteria. Are theypassing, filling my rules? So
there's a sourcing and vettingaspect to it that your your reps
are going to need. They're goingto want them. You don't have to
have them, but you're going towant that right there. Your
compliance team, ideally, isonly managing exceptions at that
point when the when your broker,who, who really wants to use
(16:36):
this carrier, be found yourrules, you're going to bubble it
up to your compliance team tosay, hey, they're fine, but it's
only for this which is not fraudrelated. Maybe it's performance
related or safety scores, butcan we use this care? And then
the compliance guy is going todig in and say, Well, normally
we wouldn't, but their ELD isconnected, so I see their truck
in Milwaukee right now, sooverride let them in. So they're
going to use it a few times aday. And then you have your
(16:57):
track and trace team, which isgoing to have it open all the
time. You have your have youryour there's different hats, and
how often they're going to useit. I wouldn't say every person
and every broker is going tohave a highway login at all, but
depending on how nuanced youwant to get and how deep you
want to go, they're going tohave the highway UI pulled up,
or they're going to be fullyintegrated through TMS. They're
just going to log into TMS tosee it right there. You can go
(17:19):
both ways. But so
Blythe Brumleve (17:21):
what happens if you discover a problem after
you've already booked thecarrier?
Unknown (17:26):
Yeah? Yeah, that's a that's a big problem, right?
Yeah. So you so the beauty ofhighway being integrated is that
we do web hook integrations, orAPI integrations to TMS systems.
It's an API integration. Itmonitors carriers every five
minutes, three, five or sevenminutes being on the TMS. So on
that schedule, you're going toget the alert insurance changed,
or CSA scores under threshold,or Fraud Report, right Fraud
(17:47):
Report, it goes from passing tofailing, integrating your TMS
like that, or you have a webhookintegration, which webhook is
push and pull, and it'simmediate. As soon as something
happens, it's immediate, theresponse is in your TMS right
there. Now to your point, youalready booked the load. Maybe
the carrier's on the load,actively, Red Alert. Like
everyone all eyes on you'recalling the carrier, what's
going on? You're tracking theELD. Where's your truck right
(18:08):
now? There's not much.
Blythe Brumleve (18:10):
I just put it two and two together. You kept
saying, like, Red Alert, greenalert, highway, the highway
lights. I just put that
Unknown (18:17):
together. Yeah. Took me a minute. I'm right there, but
it took me about a year. Soyou're like a year and 20
minutes fast.
Blythe Brumleve (18:25):
Now you came from freight waves, yeah. And
what was it? What was thereason? What it maybe is the
biggest difference betweenfreight waves and then making
the transition over to Highway,yeah?
Unknown (18:36):
So I was at freight waves for four years, and it was
wonderful. I love my time there,and I love the team, and they
put me in a position to besuccessful and get me into the
right doors, right in front ofthe right people, great mentors.
You remember a lot of people.
There are great people. Thebiggest difference is that
sonar, I was on the sonar teamdoing data for Freightways.
Sonar is a data vendor sellingyou data, and there are
solutions built off of the datathat you can purchase as well.
(18:59):
Highway is a solution, not adata vendor. So, you know, no
broker comes to highway to buyour data. You come to highway
buyer solution and enforce thatcompany wide. That's the biggest
difference, I would say,between, like, a freight wave
sonar product versus highwaySaaS solution versus data
provider. Yeah, it's
Blythe Brumleve (19:19):
all intelligence. Yeah, it's one of
those where it highway from, myunderstanding, is one of those
that you it sounds like it'sbecome very pivotal to a
broker's day or a carrier state,for
Unknown (19:30):
sure. It's definitely, it's touched frequently, for
sure.
Blythe Brumleve (19:34):
So what? What's next for highway? What do you
guys got, you know, cooking?
Unknown (19:39):
Yeah, um, there's, there's, there's, there's three
kind of big initiatives. I don'tknow what I'm allowed to talk
about, because I'm just a salesguy, yeah, we can save it for
later. Yeah, we can say forlater. There's three big ones. I
think the one that we're like, Iposted on LinkedIn about it in
response, we were rolling out acarrier product. I. Um, that's
(20:00):
free for carriers to vetbrokers. Are you talking to the
right person, or is this someonein person, the broker? What's
their days to pay, their credit,the everything about the broker,
but for carriers. So the samehighway login, when a carrier
logs in the highway now they cansee, here's all my current
brokers I work with. Let melearn more about them. Make sure
I'm doing the right person, orthey're signing up to a new
broker. Is this the right guy ornot? So it's a free product for
(20:20):
carriers to vet brokers.
Blythe Brumleve (20:22):
That's super interesting, because then you're
putting the power back intocarriers. Well, carriers
Unknown (20:25):
get hammered by all angles all the time, so we're
not going to charge for it. It'sright there for you. They're
already in the highway network.
You're already here while wecharge you for doing something
you're already doing. Just givethem some more benefit.
Blythe Brumleve (20:37):
Yeah, that's awesome. All right. Well, Reed,
I anything else that you feel isimportant to mention that we
haven't already talked
Unknown (20:43):
about, oh, we I feel like we went all sorts of
directions, which is great. Idon't know if you want to reach
out to us. Read at highwayservice, at highway support, at
highway you can get to a lot ofways. Go to our website,
highway.com, and you can get ademo. From there, a lot of
information. But
Blythe Brumleve (20:58):
yeah, yeah, better safe than sorry. Sign up
for highway, yeah, thank you.
Thanks
Unknown (21:01):
very much. Yeah. Really appreciate it.
Blythe Brumleve (21:07):
I hope you enjoyed this episode of
everything is logistics, apodcast for the thinkers in
freight, telling the storiesbehind how your favorite stuff
and people get from point A toB. Subscribe to the show. Sign
up for our newsletter and followour socials over at everything
is logistics.com and in additionto the podcast, I also wanted to
let y'all know about anothercompany I operate, and that's
(21:28):
digital dispatch, where we helpyou build a better website. Now,
a lot of the times, we hand thistask of building a new website
or refreshing a current one offto a coworker's child, a
neighbor down the street orstranger around the world, where
you probably spend more timeexplaining the freight industry
than it takes to actually buildthe dang website. Well, that
(21:49):
doesn't happen at Digitaldispatch. We've been building
online since 2009 but we're alsoearly adopters of AI automation
and other website tactics thathelp your company to be a
central place to pull in all ofyour social media posts, recruit
new employees and give potentialcustomers a glimpse into how you
operate your business. Our newwebsite builds start as low as
(22:10):
$1,500 along with ongoingwebsite management, maintenance
and updates starting at $90 amonth, plus some bonus freight,
marketing and sales contentsimilar to what you hear on the
podcast. You can watch a quickexplainer video over on digital
dispatch.io, just check out thepricing page once you arrive,
and you can see how we can buildyour digital ecosystem on a
(22:33):
strong foundation. Until then, Ihope you enjoyed this episode.
I'll see you all real soon andgo Jags, you?
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