ASSOCIATION INSIGHTS: TIA
Fighting Fraud Together
C
argo theft, double brokering, and other types of fraud in the freight industry continue to plague everyone involved with moving goods
and services through the supply chain. The staggering cost of fraud stands between $500 million and $700 million annually, that is roughly 10 percent of the industry’s value.
TIA has been very active in helping our members and different sectors of the industry combat fraud. To help members combat fraud, TIA has brought members to Capitol Hill to testify on the problem and share their experiences. We have also introduced a free course “Fraud in the Supply Chain,“ which helps brokers develop selection policies to combat fraud. TIA will launch a quarterly fraud report in the spring/ summer this year that will highlight how often fraud happens in the industry, what commodities are most targeted, and how much fraud is costing shippers, brokers, and carriers annually. Additionally, we will release an updated Framework to Combat Fraud. This comprehensive framework covers all the types of fraud currently perpetuated in the supply chain and feedback on how to handle these situations when faced with them. And we established a Fraud Task Force to harness the collective wisdom and experiences of our members to mitigate and eradicate fraud.
While this issue is quite overwhelming to many of us, there are certain actions that can be taken to help protect your company (and reputation) from falling victim to fraud. One way to help your company avoid
becoming a victim is to recognize red flags when it comes to protecting yourself This past summer, TIA released our Fraud in the Supply Chain white paper outlining the red flags to look for in companies:
1. Recently activated authority
2. Multiple recent address changes (and huge jumps across the country in address changes)
3.
The insurance certificate policy for all equipment is missing or not produced
4. Motor Carriers with a P.O. Box
5. Driver/Dispatch refusal to give out driver cell number
6. Refusal to track on tracking apps
7. Double brokering reports via TIA Watchdog and other carrier vetting services
8. Requesting a lesser rate than the posted amount 9. Operates in a suspected double-brokering hot spot
10. No or disproportionately low vehicle/driver inspections compared to power units reported on MCS-150 (check the numbers at
safer.fmcsa.dot.gov).
11. Request for quick pay, especially if you have not used a particular carrier
before
12. Discrepancies in the number of
drivers, equipment and number of miles
13. Claims that drivers are “owner-operator lessors” - could be true. The best
way to check is the placard on the side of the truck. It must display the name and USDOT# of the carrier arranged by the broker. Often requires shipper assistance.
14. Owns a small number of trucks, plus has broker authority
15. Affiliated with another company via address, phone, etc. that has broker authority
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