How MOTUS is helping FMCSA combat identity theft, unauthorized account access, and one of the trucking industry’s most dangerous habits.

By Andrey Shulik, CIC/CRM

Why FMCSA Is Tightening Security — and Why That’s a Good Thing

For years, small trucking companies have relied on dispatchers, permit agents, compliance consultants, licensing services, and other third-party providers to help keep their businesses running. There is nothing wrong with seeking professional assistance. In many cases, these service providers play an important role in helping motor carriers navigate regulatory requirements and administrative tasks.

Many of America’s small trucking businesses are owned and operated by hardworking immigrants. These business owners often face significant challenges, including limited time, limited administrative resources, language barriers, and the overwhelming demands of operating a transportation company. Between servicing customers, managing drivers, maintaining equipment, and complying with regulations, it is understandable why many carriers seek outside help.

Unfortunately, this reality has also created a dangerous habit throughout parts of the trucking industry: sharing usernames, passwords, and account credentials.

Far too often, trucking company owners provide access to critical systems by simply handing over their login information. In some cases, they share Login.gov credentials, FMCSA accounts, email passwords, banking access, insurance portals, and other sensitive business systems with individuals they barely know.

Even more concerning, many of these arrangements are established without:

• Written contracts
• Confidentiality agreements
• Privacy policies
• Cybersecurity protections
• Professional liability insurance
• Documented operating procedures
• Proper verification of the service provider’s legitimacy
• Any meaningful control over who actually has access to company data

Many business owners assume that because someone is helping them with permits, dispatching, safety, compliance, or insurance, that person can be trusted with complete access to their business. Unfortunately, that assumption can create significant risk.

Identity Theft in Transportation Has Become a Serious Problem

The transportation industry has experienced increasing concerns surrounding identity theft, fraudulent carrier operations, unauthorized account access, and so-called “chameleon carriers” that attempt to hide poor safety records or enforcement history behind new company identities. As a result, industry participants have significantly increased their focus on verification and accountability.

Freight brokers and shippers frequently use sophisticated onboarding platforms to verify who actually owns and controls a trucking company before awarding freight. Insurance companies are paying closer attention to ownership structures, operational control, and the identities of individuals who represent transportation businesses. Government agencies are also implementing stronger controls designed to reduce fraud and improve accountability.

MOTUS should be viewed in this broader context.

MOTUS Is About More Than Registration

Many carriers see MOTUS as simply a replacement for older FMCSA systems.That view misses a much larger point.

MOTUS was designed to help ensure that individuals accessing carrier information are properly identified and authenticated. The system relies on Login.gov identity verification and is built around the principle that every user should have their own verified identity. This represents a significant shift from longstanding industry habits.

Historically, many companies operated under a simple approach:

“Just give the dispatcher my password.”

Or:

“My permit company handles everything, so they have all my logins.”

Or:

“My cousin set up the account and knows the password.”

Those practices may have been common, but they were never good security. MOTUS is designed to eliminate the need for credential sharing by allowing authorized users to be given appropriate access without requiring the owner to surrender control of the account.

Sharing Login.gov Credentials Is Not Okay

A Login.gov account is intended to represent a specific individual’s verified identity.

When a trucking company owner shares Login.gov credentials with another person, several problems immediately arise:

Nobody can determine who actually performed actions within the system. Multiple individuals may be operating under a single identity. Sensitive company information becomes vulnerable to misuse. Unauthorized changes become difficult to investigate. Former service providers may continue to possess access long after the business relationship ends.

The risk becomes even greater when credentials are shared with individuals or businesses that operate without contracts, licensing, professional insurance, cybersecurity controls, or formal accountability.

Unfortunately, some trucking companies routinely grant complete access to people they have never met in person and know only through social media, messaging apps, or informal referrals.

No business owner would casually hand over the keys to every truck in the fleet to a stranger. Yet many routinely hand over complete access to their digital business.

The Proper Way to Use MOTUS

The model that FMCSA is promoting is actually quite straightforward.

Each individual should maintain their own Login.gov account. Each user should complete their own identity verification.

The business owner should control the company’s MOTUS account in administrator capacity. If assistance is needed, the company administrator can grant appropriate access rights to authorized users. If a relationship ends, those permissions can be modified or removed.

This creates accountability while allowing legitimate service providers to continue helping carriers manage regulatory responsibilities.

Most importantly, it creates a clear record of who is accessing the system and what actions they perform.

A Needed Cultural Change

Technology, cybersecurity, and fraud prevention are no longer issues reserved for large corporations. Small trucking companies face the same threats as larger businesses, often with fewer resources available to protect themselves.

The industry must move beyond a culture where passwords are written on scraps of paper, shared through text messages, sent through social media platforms, or provided to anyone offering administrative assistance.

Professional service providers can and should continue supporting motor carriers. However, that support must be provided through secure access controls, proper authorization procedures, and individual user identities.

MOTUS is not simply another government website. It is part of a larger effort to improve security, reduce fraud, combat identity theft, and ensure accountability within the transportation industry. Carriers who embrace these changes will be better positioned to protect their businesses, their operating authority, and their future.

Because protecting access to your company is every bit as important as protecting the keys to your truck.

How Nuclear Verdicts and Legal System Abuse Are Reshaping Transportation and Raising Consumer Prices

By Andrey Shulik, CIC/CRM

Most Americans never think about the legal system when they buy groceries, order products online, or purchase building materials for a home project. Yet a growing body of research suggests that significant changes in the civil litigation environment are increasing costs throughout the economy, particularly within the transportation industry that serves as the backbone of America’s supply chain.

At the center of this discussion are two terms that have become increasingly common in insurance, transportation, and legal circles: nuclear verdicts and social inflation. While these concepts may sound like industry jargon, their effects can eventually reach small businesses and consumers across the country.

Understanding Nuclear Verdicts

A nuclear verdict generally refers to a jury award that exceeds $10 million. While severe injuries and losses can justify substantial compensation, many insurers, trucking companies, and industry researchers argue that the frequency and size of these awards have increased dramatically in recent years.

The transportation industry has become particularly vulnerable to large verdicts because commercial trucks are involved in high-severity accidents, operate in public view, and typically carry significant insurance limits. Plaintiff attorneys often view trucking companies as attractive litigation targets because of the perception that transportation businesses have substantial financial resources or insurance coverage available to pay claims.

Research conducted by the American Transportation Research Institute (ATRI) has documented a significant increase in both the number and size of large verdicts against trucking companies. According to ATRI, verdict awards in trucking litigation have grown at a rate that far exceeds both general inflation and healthcare cost inflation.

The Concept of Social Inflation

Insurance economists often use the term social inflation to describe increases in claim costs that cannot be explained solely by traditional economic inflation.

The Insurance Information Institute (Triple-I) and the Casualty Actuarial Society (CAS) have published research indicating that social inflation has contributed billions of dollars in additional commercial auto liability losses over the past decade. Their research suggests that liability claim costs have increased beyond what would normally be expected from standard economic factors.

Several factors are commonly associated with social inflation:

• Larger jury awards
• Longer and more complex litigation
• Growing acceptance of large damage awards
• Third-party litigation funding
• Expanded theories of liability
• Increased attorney advertising
• Changes in public attitudes toward corporations and insurers

Researchers note that social inflation is difficult to measure precisely because it involves a combination of legal, societal, and economic influences. Nevertheless, actuarial studies have found evidence that claim costs in commercial auto liability have risen substantially faster than underlying inflation trends.

Why Trucking Has Become a Primary Target

Few industries feel the impact of litigation trends more directly than trucking.

Every trucking company must maintain liability insurance. When claim severity increases, insurers must adjust premiums to reflect anticipated future losses. The result is often higher insurance costs for motor carriers, regardless of whether an individual company has experienced a serious claim.

Transportation companies today face multiple financial pressures:

• Rising insurance premiums
• Larger deductibles and self-insured retentions
• Increased legal defense costs
• Reduced availability of insurance capacity
• Greater pressure to adopt extensive risk management programs

Sentry Insurance, which insures transportation businesses throughout the United States, has publicly stated that legal system abuse contributes to nuclear verdicts and escalating litigation expenses that ultimately increase insurance costs within the trucking industry. The company has also identified legal reform initiatives as one of its major public policy priorities.

Legal System Abuse: What Reform Advocates Mean

Supporters of legal reform often emphasize that their goal is not to prevent legitimately injured individuals from receiving compensation. Instead, they argue that certain legal practices can distort outcomes and create costs that extend beyond the parties directly involved in a lawsuit.

Among the practices frequently cited are:

Third-Party Litigation Funding

Third-party litigation funding occurs when outside investors provide financing for lawsuits in exchange for a share of any future settlement or verdict. Critics argue that this arrangement can encourage prolonged litigation and higher settlement demands. Supporters maintain that it helps plaintiffs pursue legitimate claims that they otherwise could not afford.

Phantom Damages

Some reform advocates argue that juries should hear evidence regarding the amount actually paid for medical treatment rather than only the amount initially billed. They contend that substantial differences between billed and paid amounts can lead to inflated damage calculations.

Venue Shopping

Venue shopping refers to filing cases in jurisdictions perceived to be more favorable to plaintiffs. Critics argue that this practice can create inconsistent legal outcomes and contribute to larger verdict awards.

Jury Anchoring

Jury anchoring occurs when extremely high dollar figures are suggested during litigation, potentially influencing how jurors evaluate damages. Some states have considered reforms intended to address these tactics.

The Hidden Impact on Small Businesses

For many small business owners, nuclear verdicts may seem like a problem affecting only trucking companies, insurance carriers, and attorneys. In reality, the economic consequences can spread far beyond the courtroom.

Transportation costs influence nearly every product sold in America. Food products, clothing, electronics, construction materials, medical supplies, and consumer goods all rely on freight transportation at various stages of production and distribution.

When liability costs increase, trucking companies often face higher insurance premiums. Those additional expenses become part of operating costs and may ultimately be reflected in freight rates. Manufacturers, distributors, wholesalers, and retailers then absorb or pass along those increased costs.

The result is a ripple effect that touches many parts of the economy.

For a small retailer, transportation cost increases may reduce profit margins. For a construction contractor, they may increase the cost of materials. For consumers, they may contribute to higher prices for everyday goods.

The Broader Economic Debate

The U.S. Chamber of Commerce Institute for Legal Reform has estimated that costs associated with the U.S. tort system represent hundreds of billions of dollars annually and amount to thousands of dollars per household. Research published by the organization suggests that litigation-related costs have grown faster than inflation and GDP over recent years.

At the same time, many legal professionals and consumer advocates argue that substantial verdicts can reflect the true costs of catastrophic injuries and serve an important role in holding negligent parties accountable. They caution against reforms that could limit access to justice or reduce compensation for seriously injured individuals.

This debate ultimately centers on a difficult policy question:

How can society ensure fair compensation for victims while maintaining a legal environment that does not create excessive costs for businesses, consumers, and the broader economy?

There is no simple answer, which explains why legislatures across the country continue to grapple with these issues.

Legislative Responses

Several states have recently enacted or considered legal reforms addressing topics such as comparative negligence, disclosure of litigation funding, admissibility of medical billing evidence, venue rules, statutes of limitation, and jury procedures.

Organizations representing trucking companies, insurers, manufacturers, and other business groups have been actively involved in these discussions, arguing that greater transparency and balance are needed within the civil justice system.

At the same time, plaintiff attorneys and consumer advocates continue to oppose many of these proposals, arguing that existing legal remedies remain essential for protecting injured parties and ensuring accountability.

Conclusion

Nuclear verdicts and social inflation may appear to be distant issues confined to courtrooms and insurance companies, but their effects often extend far beyond legal proceedings.

For trucking companies, the consequences can include rising insurance costs and increased operational expenses. For manufacturers and retailers, transportation costs can become more expensive. For consumers, those costs may ultimately appear in the prices paid for everyday goods and services.

As litigation trends continue to evolve, the debate over legal system abuse, tort reform, and nuclear verdicts is likely to remain one of the most significant public policy issues affecting the transportation industry and the broader economy.

References

1. American Transportation Research Institute (ATRI), Understanding the Impact of Nuclear Verdicts on the Trucking Industry, 2020.
2. Insurance Information Institute (Triple-I) and Casualty Actuarial Society (CAS), Social Inflation and Loss Development – An Update, 2023.
3. Insurance Information Institute (Triple-I), Social Inflation: What It Is and Why It Matters.
4. U.S. Chamber of Commerce Institute for Legal Reform, Tort Costs in America, Third Edition, 2024.
5. U.S. Chamber of Commerce, The Hidden Costs of Lawsuits Continue to Grow.
6. U.S. Chamber of Commerce, Lawsuit Costs Are Escalating, and U.S. Households Are Paying the Price.
7. Sentry Insurance Government & Regulatory Affairs, 2025 Legal System Abuse Reform Report.
8. Sentry Insurance transportation industry materials and customer communications regarding legal system abuse reform and transportation litigation trends.