Navigating the fraud minefield in logistics
By Kelly Greenlee, President of RMX Global Logistics
The news is filled with stories about fraud and cyberattacks, and it’s a topic that’s constantly on everyone’s mind in our industry. Understanding the latest scams is no longer optional – it’s essential to protecting your business and reputation.
From carriers having FMCSA credentials hacked, to detention fraud, and even people stealing from drivers’ fuel accounts, fraudsters are not letting up. Cargo theft was up in the second quarter of this year with the average value of shipments targeted around $150k. Being associated with fraudulent activities can harm a company’s standing in the industry, leading to lost business opportunities and strained relationships. Not to mention it impacts the company’s bottom line and disrupts operations.
Hacked fmcsa accounts
One of the main issues stems from apparent loopholes in the FMCSA’s registration system that allow criminals to easily register fake trucking companies. There are more and more reports of scammers changing the contact information with the FMCSA to their own. Criminals can use these companies to commit fraud, such as double-brokering loads. The FMCSA is planning a major overhaul of its registration system, but will this be implemented quickly enough?
The escalating threat of fraud in the trucking industry underscores the importance of partnering with well-trained and technologically equipped brokers. Experienced brokers can identify potential red flags and utilize technology to thoroughly vet carriers. The FMCSA provides a valuable resource with a comprehensive list of known scams and preventative measures. I encourage you to review this information and share it with your team:
https://www.fmcsa.dot.gov/registration/fraud-alerts
What to do if you are hacked? The FMCSA suggests you report it to the local law enforcement and file a complaint with USDOT and with FMCSA. Learn more here: https://www.fmcsa.dot.gov/mission/help/broker-and-carrier-fraud-and-identity-theft
The tia is helping with solutions
The Transportation Intermediaries Association (TIA) continues to take the lead in tracking fraud trends and pushing for policy that would protect us against bad actors. The TIA has warned Congress about rampant fraud and urged the FMCSA to take more definitive action against fraudsters. They have identified 5 types of fraud.
- Cargo theft
- Financial theft
- Identity theft
- Internal theft
- Data/information theft
The TIA has published in-depth examples of these fraudulent activities and best practices for companies to reduce the risk of fraud. Members can access it on the TIA site: https://www.tianet.org/news/tia-releases-updated-version-of-its-framework-to-combat-fraud/
RMX aims to stay vigilant and informed and keep our contacts informed as well. Reach out to us with any questions about hauling your next load!
Sources:
https://www.ttnews.com/articles/trucking-cargo-theft-q2-2024