New Laws & Regulation Needed to Crack Down on Double Brokering, Identity Theft

Double brokering, identity theft and other fraud have been on the rise. Bad actors in the industry take advantage of trucking owner/operators and can cost them thousands of dollars.

Many of the trucking industry’s top players have called on the Federal Motor Carrier Safety Administration (FMCSA) to enforce and fully implement existing laws and regulations that would curb fraud and abuse.

Here’s what you need to know about current double brokering fraud and abuse trends:

• Currently, unlicensed and unbonded dispatch services who operate as brokers can evade regulations because they aren’t classified as brokers.
• FMCSA attempts to clarify the role of dispatch services and lists factors that, if a dispatch service provider meets, would classify them as a broker. This would make it easier for the FMCSA to hold them accountable to regulations.
• The group published the following in a list of other factors that indicate a dispatch service should have brokerage authority:
  • The dispatch service accepts a shipment without a truck/carrier, then attempts to find a truck/carrier to move the shipment.
  • The dispatch service is soliciting to the open market of carriers for the purposes of transporting a freight shipment.
• Small trucking owner-operators are frustrated that brokers consistently disregard regulations written to establish fairness and transparency between motor carriers and brokers.
• Some industry players believe the FMCSA needs a “cop on the block” to fight brokered-freight fraud, claiming that their guidance is lackluster and not enough to stop bad actors.

Read the original article here: Overdrive Online – FMCSA needs a ‘cop on the block’ fighting brokered-freight fraud

Whether you’re a new or existing trucking owner-operator, i’s important to be on the lookout for bad actors who take advantage of the market. If you need additional support or have questions regarding business strategy, funding and more, our business experts are happy to help. Contact Transcap today!