September 16, 2024 / By admin / Logistic • Trucking / 0 Comments
By Mark Fiorini, President of Westgate Global Logistics
Double brokering remains a major concern in our industry. Double brokering is a deceptive practice that disrupts the freight transportation process and exposes shippers to unnecessary risks. It often involves fraudulent activities, such as identity theft, misrepresentation, and cargo theft. We’ve been actively lobbying alongside the TIA in Washington D.C. and urging the FMCSA to take stricter action against these bad actors, but it’s still a widespread issue.
FMSCA’s Response
Many are frustrated with the FMCSA’s negligence in imposing penalties and preventing the continuous fraud that is occurring each day in the industry. There are numerous reports of fraudsters exploiting the FMCSA’s registration system to create fake trucking companies or alter contact information for legitimate ones, enabling them to double-broker loads.
While the FMCSA does provide a list of known scams to watch out for, many are questioning why more hasn’t been done to prevent these fraudulent activities.
You can see a list of known scams to be aware of here: https://www.fmcsa.dot.gov/registration/fraud-alerts
TIA’s Continued Support
On September, I’ll be joining TIA members in Washington, D.C. at the Annual Policy Forum, where we meet with members of Congress and their staff to ask for help with ongoing issues and concerns. The TIA has been vocal with Congress about rampant fraud and urged the FMCSA to take more definitive action against fraudsters. They have also published detailed 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/
Shippers on High Alert
Shippers are also helping to set protocols to verify carriers on the loading docks. They are training employees to check for the correct wrap on the truck, check for altered documents, and verifying driver identity.
Industry organizations, along with shippers, are taking action to combat this problem, but more needs to be done to address the root causes and prevent further fraud.
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