TIA Warns Congress of Widespread, Rampant Fraud
The lobbying group representing 3PLs and brokerage firms asserts that rampant fraud in the trucking industry has burgeoned into an $800 million issue, and the Federal Motor Carrier Safety Administration (FMCSA) is not adequately addressing the issue.
The lobbying group representing 3PLs and brokerage firms asserts that rampant fraud in the trucking industry has burgeoned into an $800 million issue, and the Federal Motor Carrier Safety Administration (FMCSA) is not adequately addressing the issue.
During a hearing, when questioned about the types of fraud observed, Tucker, CEO of Tucker Company Worldwide, emphasized that the problem involves criminals posing as both brokers and trucking companies.
He emphasized that it shouldn't be categorized as carrier or broker fraud, but rather as criminal activity. Tucker also highlighted instances of fraud related to dispatch services, often based in other countries, which, unlike U.S.-based services, are not obligated by the FMCSA to obtain a license or registration.
“There’s a surge of malicious actors engaging in illegal activity, registering with FMCSA as carriers and perpetrating fraud, theft and holding freight hostage in situations without any legal consequences,” said Jeffrey Tucker, testifying on behalf of the Transportation Intermediaries Association at a hearing before the U.S. House Transportation and Infrastructure Committee on Wednesday.
Courtesy: FreightWaves
