In 2023, the Federal Trade Commission determined consumers lost more than $10 billion due to fraudulent activity, surpassing the all-time high in 2022. The transportation industry is not excluded in these calculations. Examples of fraud in the transportation industry are identified as cargo theft, insurance fraud, equipment fraud, and more. While this reality can be daunting, the Federal Motor Carrier Safety Administration (FMCSA) is working tirelessly to prevent fraudulent activities plaguing the transportation industry.
In a recent podcast episode of the Bodacious Cowboy, Ken Riddle, Director of Registration and Safety Management at FMCSA says, “Fraud is coming at every angle…it’s at the highest of all time.”
Riddle and his team have developed a new database that will combat fraud in several ways. This new database will be available in early 2025. Consumers can look forward to new features like:
- Facial recognition to validate load pickup
- IP address tracking
- The replacement of Motor Carrier (MC) Numbers with Department of Transportation Numbers (DOT)
The FMCSA plays a crucial role in the combat against fraud. Riddle also encourages people to Know Your Customer (KYC). Pertinent information about your customer is the number one way to prevent fraud.
Knichel Logistics CEO, Kristy Knichel, commends the work Ken Riddle and his group are doing. “I have been in the industry for 26 years, and we have not seen it (fraud) this bad my whole career. We applaud the efforts that you (FMCSA) are making.”
Kristy Knichel and her team at Knichel Logistics have also lobbied with the TIA to support legislation (H.R. 8505) aimed at strengthening regulations and empowering the FMCSA to combat fraud effectively. TIA continues working against invasive regulations and advocating for stronger fraud protection measures and clearer worker classification rules.
The transportation industry can lower risks and protect its reputation by fostering an honest and transparent culture. Every day the industry is making strides to create a fair and efficient transportation system for all involved. Stay tuned as we keep you updated on the latest developments from the FMCSA and other key regulatory bodies shaping the future of logistics and transportation.