Episode 05 of the Fight Fraud Series with Dana Randazzo, COO — Auto Hauler Exchange
Most shippers who vet carriers themselves are doing a one-time lookup. They check the MC number on FMCSA's SAFER system, request a certificate of insurance, and file it. If the carrier clears those two hurdles at setup, they're considered vetted. Sometimes indefinitely.
That's not a vetting process. It's a snapshot of one day. Insurance lapses. Authority gets revoked. Safety ratings change. A one-time check catches none of it. In Episode 5 of the Fight Fraud Series, Dana Randazzo breaks down what real carrier vetting looks like, what you can verify yourself on FMCSA, and why continuous monitoring is the only defense that holds over time.
What you can check yourself on FMCSA SAFER
FMCSA's SAFER system is publicly accessible at safer.fmcsa.dot.gov at no cost. No login required. The Company Snapshot tool lets you search any carrier by USDOT number, MC number, or company name and returns key compliance data in seconds.
Operating authority status. Confirms the MC number is active and not revoked or suspended. A carrier with revoked authority has no business being assigned your load.
Authority age. Shows how long the carrier has held their current authority. Brand-new authority — less than 90 to 180 days old — combined with a below-market rate is one of the most consistent red flags in carrier fraud. Bad actors frequently operate on freshly acquired or purchased MC numbers to avoid a paper trail.
Safety rating. Carriers are rated Satisfactory, Conditional, or Unsatisfactory. Satisfactory means the carrier has passed a compliance review. Conditional means deficiencies were found that require correction. Unsatisfactory is disqualifying.
Inspection and crash history. The SAFER snapshot shows out-of-service rates for vehicles and drivers over the past 24 months. Compare the carrier's out-of-service percentage against national averages — both are displayed. A carrier significantly above national average has a documented compliance problem.
The 7 BASICs. FMCSA's Safety Measurement System (SMS) scores carriers across seven Behavior Analysis and Safety Improvement Categories: unsafe driving, crash indicator, hours-of-service compliance, vehicle maintenance, controlled substances and alcohol, hazardous materials compliance, and driver fitness. For vehicle transport, unsafe driving and vehicle maintenance are the most relevant. Carriers with scores above intervention thresholds in multiple categories are operating with known safety deficiencies.
How to verify a COI — and why the carrier shouldn't be the one providing it
Requesting a certificate of insurance is step one. But the COI is only as reliable as the source it came from. Fraudulent insurance certificates are common in carrier impersonation schemes — a bad actor operating under a stolen MC number can produce a convincing fake COI in minutes using publicly available policy information from the real carrier.
"AHX uses a third-party vetting system and checks where insurance emails are actually coming from." — Dana Randazzo, COO, Auto Hauler Exchange
The correct process: request the COI, then confirm the coverage directly with the insurance company listed on the certificate, not with the carrier. Call the insurer using a number you find independently — not one on the certificate itself. Confirm the policy is active, that coverage limits match what's on the COI, and that the policy hasn't been cancelled or modified since the certificate was issued.
One additional check most shippers skip: verify that the email or phone number the COI came from matches the contact information listed in FMCSA records. A COI arriving from a Gmail address when the carrier's FMCSA-registered email is a company domain is a significant red flag.
Red flags that should stop a vetting process cold
Authority less than 90 days old. New authorities lack operational history and are easier to establish fraudulently. AHX requires a minimum of 180 days of active authority before a carrier can be approved.
Free email addresses. Legitimate carriers typically use company email domains. A carrier communicating via Gmail, Yahoo, or Hotmail for business transactions is worth questioning.
Below-market rates. A rate well below market typically signals one of three things: the carrier has cut corners on insurance or compliance, they intend to demand more money once they have your vehicle, or they're trying to win the load quickly before you complete vetting.
Pressure to book quickly. Urgency is one of the most reliable signals of fraud. A carrier pressing you to book before you've completed vetting has a reason to want you to skip it.
Contact information that doesn't match FMCSA records. Always verify outbound — call the number listed in FMCSA records, not the number the carrier gave you.
Recent company name or ownership changes. Changes to company name, address, or principal officers can indicate a flagged entity trying to operate under a new identity.
What AHX's 30% approval rate actually means
"AHX actually only approves about 30% of carriers that apply. We really are showing the best of the best carriers. We truly do not just allow any carrier that pops on." — Dana Randazzo, COO, Auto Hauler Exchange
The AHX standard requires 180 days of active operating authority. Active insurance meeting coverage thresholds, verified through a third-party system that confirms both the policy and the origin of the insurance documentation. ELD connections for real-time tracking on every load. Clean safety ratings with no disqualifying violations. And approximately 150 checks beyond the baseline, including ownership verification, background analysis, and performance history.
Those who don't make it through are primarily failing on authority age, coverage, or safety record. A carrier that's been operating for 60 days with minimum insurance and an unresolved violation might pass a standard check. They won't pass AHX vetting.
Why a one-time check isn't enough
"You may have found a carrier you work great with. Everything is good. But things happen. Insurance falls off, coverage lapses. You want to make sure you're working with a company that has continuous monitoring." — Dana Randazzo
A carrier that passed vetting at onboarding may have a suspended authority or lapsed coverage six months later. Insurance policies expire, get cancelled mid-term, or have coverage reduced without triggering any notification to the shipper who originally verified the COI. Safety scores change as new inspection data is recorded.
AHX monitors every carrier on the platform continuously after approval. When insurance drops below the required threshold, or authority is suspended or revoked, the carrier is automatically paused. They can't be assigned to loads until updated and verified documentation is received. The shipper never sees the gap because the gap never reaches them.
Dana gives a specific example: a carrier with a million-dollar cargo policy whose coverage quietly drops to $500,000 mid-year. Without continuous monitoring, that change is invisible. The carrier keeps hauling loads. The coverage the shipper assumed was in place no longer exists.
Most shippers and brokers vet at onboarding. What happens to the carrier after that is no one's problem until a load goes wrong and it becomes yours.
For how the broker model's vetting gaps enable fraud, read Marketplace vs. Broker vs. Load Board.
For AHX carrier requirements in full: Requirements for Becoming a Carrier on the Exchange.
For how AHX vets and monitors carriers: How We Vet Carriers for Insurance, Monitoring, and Compliance.
Watch Episode 5 free at autohaulerexchange.com/fight-fraud.
Sources: FMCSA SAFER system, safer.fmcsa.dot.gov; FMCSA Safety Measurement System (SMS); FleetWorks, "Carrier Vetting Process: Complete Guide for Brokers," 2024; AHX State of Transparency in Vehicle Transportation.
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