FMCSA’s new ID verification slows motor carrier approvals – early data signals fraud crackdown impact.

Fraud prevention rollout: April 2025 brings identity checks to trucking

Starting in early 2025, the Federal Motor Carrier Safety Administration (FMCSA) began rolling out major changes to its Unified Registration System (URS) to curb rampant carrier fraud. One key piece of this FMCSA fraud prevention initiative took effect on April 1, 2025: mandatory identity verification via IDEMIA (a security technology provider) for all new motor carrier applicants. This new identity verification in trucking involves capturing a government-issued photo ID and a live facial “selfie” to confirm the applicant’s identity before their USDOT and operating authority registration can proceed. It also includes stricter business address validation – ensuring each carrier’s principal place of business is legitimate (not a virtual P.O. box or fake address) – as FMCSA tightened rules to reject registrations with addresses that don’t meet requirements. These steps, combined with earlier measures like requiring multi-factor login for online accounts and halting instant online PIN issuance, form a broader fraud crackdown. The agency even contracted IDEMIA to handle ID checks and shield sensitive data, providing the service at no extra cost to users.

Timeline of the Changes:  FMCSA’s anti-fraud rollout ramped up through late 2024 and early 2025. By late 2024, FMCSA had suspended online PIN requests (which fraudsters were exploiting to hijack existing accounts) and previewed the new identity proofing process. The full facial recognition and ID upload requirement went live for all new applicants in April 2025 (fmcsa.dot.gov). (Existing carriers will also have to undergo verification when they update their info, with ~800,000 current registrants eventually needing to verify identity as well. FMCSA officials rolled out the changes in phases, demonstrating the tech at industry events and assuring that help would be available – including ~300 in-person enrollment centers across the country for those who can’t easily complete the digital process. The goal was a more secure, modernized registration “one-stop shop” that keeps “bad actors” out of the system without overburdening legitimate carriers. Ken Riddle, FMCSA’s registration director, expressed confidence: “We think that 99.9% of everybody will be able to pass [the ID verification] if they are who they say they are, and pass it the first time at the kitchen table”(overdriveonline.com). In other words, virtually all honest applicants with proper IDs should sail through the process in one go.

Filed-to-published rate plummets post-ID verification

Initial data from April 2025 show a dramatic shift in new carrier application trends. At CarrierOK, we track FMCSA motor carrier authority applications through each stage (Filed → Published → Granted), and have observed a sharp drop in the percentage of filings reaching the “Published” stage after the ID verification rule kicked in. The Filed-to-Published conversion rate – typically around 60–65% in months prior – cratered to roughly 30% in April. In other words, well over half of all applications filed in April failed to advance past FMCSA’s screening to the Federal Register published stage, whereas before April the majority would have made it through. Crucially, the total number of applications filed did not fall much; would-be carriers are still submitting applications at a steady clip. It’s the approval rate to publication that collapsed, implying that FMCSA’s new identity checks are weeding out a huge chunk of applications (likely fraudulent or incomplete ones) before they ever reach the public review period.

Figure: “FMCSA approval rates crash post-ID verification.” This CarrierOK chart shows the monthly counts of Filed vs. Published new carrier applications, and the Filed-to-Published conversion rate (white line). After FMCSA’s identity verification became mandatory in April 2025, published counts (light blue) dropped by over 50%, while filings (dark blue) held steady – driving the conversion rate down from ~65% to ~30%.

This Filed→Published drop is a key leading indicator of the crackdown’s impact. The published stage represents applications that cleared initial vetting and enter a 21-day public comment period before final approval. A steep decline in the Filed-to-Published ratio suggests a high fallout rate during FMCSA’s new screening process. In short, many applicants are hitting a roadblock due to the IDEMIA identity checks or address validation and thus never make it to publication. The data provides early evidence that “FMCSA’s fraud prevention measures are having an effect,” as CarrierOK’s Steven Ferreira noted, by filtering out suspect applications before they can get motor carrier authority. A 50%+ decline in published authorities in the month after implementing facial ID verification is a dramatic signal that the agency has tightened the funnel. Legitimate new entrants are still applying (since filings remain near previous levels), but a large portion of submissions – presumably those by fraudsters or those unable to verify – are being stopped in their tracks. This metric is crucial to watch going forward: if the Filed-to-Published rate stays low, it means the front-end identity proofing is continuing to successfully catch questionable applications. It also means fewer new authorities will be entering the market in coming weeks.

Why granted authorities haven’t fallen (yet)

One might look at April’s numbers of granted authorities (i.e. new MCs actually activated) and wonder if the fraud crackdown made any difference – so far, grant counts remain high. In fact, April 2025 saw roughly the same or even slightly higher number of authorities granted compared to March, and even year-over-year, the grant volume is up. However, this is misleading due to timing. Granted authority figures are a lagging indicator because of the built-in 21-day gap between publication and grant. The authorities granted in April were largely filed and published in March (or early April) before the new verification bottleneck fully hit. Essentially, April’s grant tally reflects the “old pipeline” of applications that sneaked in prior to the strict ID checks. As CarrierOK noted in its May 9 commentary, the real slowdown will surface with a delay. We anticipate grant volumes to drop in May and June, once the smaller cohorts of published applications from late March and April work their way through the waiting period. Early May data already show fewer carriers in the queue for granting, so a dip in issued authorities is likely imminent.

For example, if only 30% of April’s ~9,200 filings got published, then late May and June will see correspondingly fewer grants (since those April filings are what would be granting after 21 days). By June, the grant numbers should more fully reflect the post-ID verification regime – probably declining significantly from the highs of early 2025. In short, don’t be fooled by the current grant counts; they’re temporarily propped up by pre-April applications. The pipeline of new motor carrier authority approvals is in fact narrowing, just on a slight delay. This has implications for capacity and industry entrants: a slowdown in new carriers activating authority could begin to materialize in late Q2 once the backlog clears. CarrierOK will be watching these lagging metrics closely to quantify how big the drop in new entrants ultimately becomes.

Fraudsters may shift tactics as new entries get harder

With FMCSA effectively slamming the door on the easiest path for fraudsters (creating fresh carrier identities out of whole cloth), bad actors are likely to pivot their strategies. If you’re a scammer who until now could register a bogus trucking company online and obtain an MC number with stolen or fake credentials, the new facial ID requirement is a serious obstacle. We expect to see increased attempts at hijacking or recycling dormant carrier accounts instead. In fact, industry reports suggest there’s already a black market for existing carrier authorities: organized fraud rings have been buying up old MC numbers in bulk (overdriveonline.com). By purchasing or taking over a defunct or inactive carrier’s identity, criminals can use a “seasoned” authority that looks legitimate, thus bypassing scrutiny on new applications. Some nefarious actors will pay tens of thousands of dollars for a clean, aged MC number with a good safety record, effectively treating it as a commodity to commit freight fraud. Others may resort to outright identity theft – for example, using phishing and social engineering to obtain a carrier’s login credentials or DOT PIN, then changing the company’s contact information to seize control of the account (a practice FMCSA has been fighting since 2023).

FMCSA is not oblivious to this shift. The agency’s long-term fraud strategy includes forcing verification on existing accounts as well: eventually every carrier will need to validate their identity when updating registration (fmcsa.dot.gov). This will help root out scammers who managed to infiltrate the system in the past. FMCSA also cracked down on address fraud (requiring a verifiable physical business address) to prevent fake office locations that criminals often used (freightwaves.com). Still, there is concern that as new registrations get tougher, fraudulent brokers or carriers may turn to exploiting established credentials, be it via buying companies or partnering with complicit insiders. We may also see a rise in double-brokering scams using stolen carrier identities, since creating a new shell carrier is no longer the path of least resistance. Industry stakeholders are urging motor carriers to be vigilant: protect your company’s DOT login information, watch for any unauthorized changes to your FMCSA records, and be cautious if you’re approached about selling your authority. The crackdown is closing one door for fraud, but savvy scammers will look for another – perhaps by impersonating legitimate carriers rather than inventing fake ones.

Impact on Small and Non-Tech-Savvy Carriers

For the majority of applicants who are legitimate, FMCSA’s new process adds an extra step but also an extra layer of confidence. However, not everyone finds technology-friendly processes, well, friendly. There is some concern that small fleets or owner-operators who aren’t tech-savvy might hit snags in the new ID verification. The process requires a decent camera (for the ID scan and selfie) and comfort with uploading documents online or via smartphone. While FMCSA has assured that almost all real applicants should pass easily – “99.9%… will be able to pass… if they are who they say they are,” as Riddle stated – early trials indicated there could be minor hiccups. During a demo at the Mid-America Trucking Show, an Overdrive reporter testing the system encountered a few glitches and had to retry the facial capture, but still completed the verification in about 15 minutes on the second or third attempt (overdriveonline.com). This suggests that even if the system works, it may not be foolproof on the first go for everyone (for instance, if an ID photo is unclear or the user’s camera has poor lighting).

FMCSA has tried to accommodate less tech-oriented users by providing alternative support. Drivers without a smartphone or those uncomfortable with the selfie process can visit one of 300 enrollment assistance centers nationwide for help. Additionally, there’s no cost for verification and no additional fees for the new process (landline.media), so applicants shouldn’t worry about being charged for these security measures. FMCSA’s resources include FAQs and even a helpline to guide people through the steps. Legitimate carriers who might struggle with computers – say, an older owner-operator who’s used to paper forms – can still file via the old paper-based method for now, though that is slower and likely to be phased out over time.

The main impact on these users will probably be slightly longer processing times or the need for assistance, rather than outright inability to get authorized. In the worst case, a few genuine applicants might abandon or delay their application if they hit too many hurdles (for example, if they don’t realize they must complete the ID step, their application won’t proceed to publication). So far, the evidence suggests most legit carriers are clearing the new checks, but stakeholders should ensure outreach and education so that no one is left behind due to technology gaps.

Looking ahead: monitoring the authority pipeline

The early data from April makes one thing clear: FMCSA’s fraud prevention push – from identity verification to stricter vetting – is quickly shaking up the motor carrier authority process.

Fraudulent new registrations have been dealt a serious blow, as seen by the plunge in Filed-to-Published conversion rates. In the coming weeks, we’ll see the other shoe drop when grant numbers likely fall in line with the reduced published volume. This could translate to fewer new carriers hitting the road in May and June than we’ve seen in previous months, a direct result of the motor carrier authority delays introduced by the new verification bottleneck. It’s a trade-off: some added friction in exchange for rooting out bad actors. The big question is how sustainable these changes are – will fraudsters find new workarounds, and will FMCSA be agile in addressing those? Also, how will legitimate carrier supply be affected if approval rates remain suppressed?

CarrierOK will continue analyzing these trends. Stay tuned for the May and June data to see if grant figures indeed take the predicted dip once the 21-day lag catches up. We’ll also break down the numbers by carrier type and region to spot any patterns – for instance, are certain states seeing more application fallout due to address issues, or are certain segments of trucking more impacted by the delays? Early signs are encouraging that “FMCSA fraud prevention” efforts are working, but the story is still unfolding. For industry players, now is a good time to double-check your compliance and ensure any new applications you file are squeaky clean with all required documentation – the margin for error is slimmer under these checks. _________________

Stay ahead of fraud with daily monitoring

FMCSA’s new verification measures are raising the bar for new applicants — but fraud hasn’t disappeared. It’s evolving.

As bad actors shift from registering fresh MCs to hijacking dormant or legitimate authorities, subtle changes to company information can become the earliest signs of a problem. That’s why CarrierOK offers daily carrier monitoring, tracking critical updates to company records: changes to addresses, phone numbers, emails, insurance status, and more.

These changes often surface before formal enforcement — and catching them early can help prevent fraud losses before they happen.

Want a deeper breakdown of April’s trends or to start monitoring your carrier portfolio for risk signals? Contact us to explore CarrierOK’s daily monitoring tools and data products.