April 2025 Introduces Identity Checks for Trucking Industry
The Federal Motor Carrier Safety Administration (FMCSA) began implementing major updates to its Unified Registration System (URS) in early 2025 in an effort to combat carrier fraud. A significant change took effect on April 1, 2025: mandatory identity verification for all new motor carrier applicants. This requirement, part of the FMCSA’s broader fraud prevention initiative, involves applicants submitting a government-issued photo ID and a live "selfie" to verify their identity before receiving USDOT and operating authority registration. Additionally, FMCSA has implemented stricter business address validation, ensuring that motor carriers provide a legitimate physical address rather than a virtual P.O. box or fraudulent location. These measures, along with previous updates such as multi-factor login and the halting of instant online PIN issuance, are designed to combat fraud. FMCSA has contracted with security technology provider IDEMIA to manage these identity checks and safeguard sensitive data, all at no additional cost to applicants.
Timeline of FMCSA's Fraud Prevention Rollout
FMCSA’s anti-fraud measures began intensifying in late 2024 and continued into early 2025. By the end of 2024, the agency had suspended online PIN requests, which fraudsters had been exploiting to hijack existing accounts. The new identity verification process was previewed and officially rolled out for all new applicants in April 2025. Existing carriers will also need to verify their identities when updating their information, eventually requiring verification from approximately 800,000 registered carriers. The changes were implemented in stages, with FMCSA demonstrating the new technology at industry events and assuring that support would be available, including nearly 300 in-person enrollment centers nationwide for those unable to complete the digital process. The goal is to create a secure, modernized registration system that keeps fraudsters out without burdening legitimate carriers. Ken Riddle, FMCSA’s registration director, expressed confidence that the new verification process would be seamless for most applicants: “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.”
Sharp Decline in Published Applications Post-ID Verification
Initial data from April 2025 highlights a noticeable shift in motor carrier application trends. CarrierOK tracks FMCSA motor carrier authority applications through each stage (Filed → Published → Granted), and has observed a dramatic drop in the percentage of applications that reached the “Published” stage after the ID verification requirement was enforced.
The conversion rate from Filed to Published, which typically hovered around 60-65%, plummeted to approximately 30% in April. This means that more than half of the applications filed in April were not approved to move on to the public review stage, while historically, most would have. Despite this, the total number of applications filed remained consistent, indicating that would-be carriers are still submitting applications at a steady rate. The sharp decrease in the conversion rate suggests that FMCSA’s new identity checks are filtering out a significant portion of applications before they reach the public review period, likely due to fraud or incomplete submissions.
Understanding the Decline in Published Authorities
The drop in Filed-to-Published conversion rates is a significant indicator of the new fraud prevention measures at work. The Published stage marks applications that have passed initial screening and are open for a 21-day public comment period before final approval. A sharp decline in this rate suggests that FMCSA’s new identity verification and address validation measures are successfully rejecting suspect applications before they enter the public review phase. According to CarrierOK’s Steven Ferreira, this early data shows that FMCSA’s crackdown is making an impact by weeding out fraudulent applications before they can get motor carrier authority.
Despite this drop, the number of granted authorities has remained high, which might appear misleading. This is because granted authority figures are a lagging indicator, reflecting applications that were submitted and published before the new ID verification requirements were fully implemented. In the coming months, grant volumes are expected to decline as the backlog of applications from late March and early April work through the system. Early May data suggests fewer carriers are in the queue for granting, indicating that a reduction in granted authorities is likely.
Why FMCSA's Fraud Prevention Measures Are Likely to Affect New Carrier Supply
The slowdown in new carrier approvals could have long-term effects on industry capacity. With the FMCSA’s new verification processes filtering out potentially fraudulent applications, fewer new authorities are expected to be granted in the coming months. This reduced flow of new entrants could impact the availability of motor carriers in the second quarter of 2025, as the effects of these changes ripple through the approval pipeline.
Fraudsters Adapt to New Barriers
With the FMCSA effectively closing the door on the simplest route for fraudsters—creating fake trucking companies and obtaining an MC number using stolen or false credentials—bad actors are likely to adjust their tactics. Fraudsters may increasingly turn to hijacking or reactivating dormant carrier accounts. Reports suggest there’s already a black market for existing carrier authorities, where organized fraud rings are buying up old MC numbers in bulk to use for fraudulent activities.
FMCSA is addressing this issue as part of its long-term fraud strategy, which will eventually require all carriers to verify their identity when updating their registration information. This will help identify and remove fraudulent carriers that previously infiltrated the system. FMCSA has also cracked down on address fraud by requiring verifiable physical business addresses, which fraudsters have often used to hide their activities. However, there is concern that the increase in difficulty for new registrations may lead fraudulent brokers or carriers to exploit established credentials.
Impact on Small and Non-Tech-Savvy Carriers
While FMCSA’s new ID verification process is a step forward for security, it could present challenges for small fleets and owner-operators who are not tech-savvy. The process requires a smartphone or computer with a decent camera for the ID scan and selfie upload. While FMCSA has stated that the majority of applicants should have no problem passing the verification process, early trials have indicated some users may encounter difficulties.
To assist those who struggle with the technology, FMCSA has provided nearly 300 enrollment assistance centers across the country, where applicants can receive help with the process. The new verification system is free of charge, and no additional fees are required. For applicants who are less familiar with digital processes, FMCSA still offers a paper-based filing method, though it is slower and may be phased out in the future.
Looking Ahead: Monitoring the Impact of FMCSA's New Verification Measures
FMCSA’s fraud prevention efforts are already having a noticeable impact on motor carrier applications. With fewer applications moving from Filed to Published, it’s clear that the new identity verification system is weeding out fraudulent carriers. However, it will take time for the full effects to be felt, particularly as the agency works through the backlog of applications that were filed before the new rules were in place.
The long-term impact will be felt in reduced numbers of new carriers entering the market, potentially affecting capacity. Industry players will need to monitor these trends closely, as the pipeline for motor carrier authority approvals tightens.
Stay Vigilant Against Fraud
While FMCSA’s new verification system has reduced the opportunity for fraudsters to register new trucking companies, fraud has not disappeared—it’s simply evolving. As fraudsters shift to tactics like hijacking dormant carrier accounts, it’s important for carriers to stay vigilant. CarrierOK offers daily monitoring services that track key changes to company records, such as address updates, phone number changes, or shifts in insurance status, helping identify fraud before it can take hold.
