Fighting freight fraud an immediate focus at annual meeting of brokers' group
Two years after then-TIA President Anne Reinke described double brokering as 'out of control,' none of the three TIA officials who spoke at this year's gathering gave any hint that fraud is on the decline. Reinke's comments in 2023 were directed at double brokering; this year it was fraud in general, of which double brokering is one part.
The meeting here with more than 1,500 attendees is the first for Chris Burroughs as president of the TIA. He moved into the top slot last September after Reinke took over leadership of the Intermodal Association of North America.
Burroughs, in his first remarks to a TIA conference as president, said the organization has been 'tackling this problem' since the 2012 passage of a federal antifraud law. He noted it was one of the first pieces of legislation he had worked on at TIA after joining the organization that year.
Nonetheless, Burroughs said, 'the situation has obviously exploded into a massive fraud.'
2020 data from the Federal Motor Carrier Safety Administration said that the agency had more than 80,000 complaints of freight fraud in its database, a figure Burroughs said was 'staggering and quite frankly unexpected.'
'It's tarnishing our industry and our reputation,' he said.
He cited a list of actions TIA has taken that have no enforcement mechanism but do raise the profile of the freight fraud issue: a task force, 'best practices' brokers can follow to reduce the amount of fraud, white papers, work with other organizations and the launch of a media campaign 'to continue to raise awareness on this issue.'
'We're also working directly with Congress and the federal agencies to push forward and getting regulations that are already on the books enforced,' Burroughs said.
Rob Kemp, the president and founder of K-R Sales Inc. and DRT Transportation and incoming chair of the TIA, said he recently had a frustrating experience in his own company's battle with fraud.
'We just had a situation not too long ago. We ended up calling the FBI and were disappointed to hear the FBI say, and you guys have probably heard this, 'We can't help you.' So if they can't help you, who can help you?' Kemp said.
Mark Christos, the president of SolvLogix Inc. and outgoing chair of the TIA, opened the conference with a push for the TIA as a bulwark against fraud.
'Every time I've been on the phone with a shipper or a prospective customer who has reservations about something really unfortunate that happened with them, relative to brokerage, I find that it's not with a TIA member,' Christos said. 'Same thing with the carrier side. They will tell us stories, all legitimate. I will ask the carrier, who is that with specifically? And they'll all say it is not a TIA member.'
Burroughs also took the opportunity to tamp down the view that brokers and carriers are at odds with each other. Perceptions of that relationship hit bottom in spring 2020, when in the face of extremely low rates soon after the pandemic started, truckers took to the streets of Washington to protest the low levels and blamed brokers. Bob Voltmann, who had the TIA head job before Reinke, made a stunning short video defending his members. He was ousted soon after, and it was never clear whether the video was the cause of his departure.
Tensions between the two groups may be arising again over the issue of broker transparency, with the FMCSA recommending new regulations.
'Carriers and brokers obviously need each other,' Burroughs said. He did not mention the broker transparency regulations but said that 'instead of trying to expose this sensitive business data, we should focus on the real issues, building trust, enhancing efficiencies and strengthening our partnerships together. Brokers don't survive without carriers.'
'We don't want to be enemies, but when bad policy threatens our industry, we will obviously stand up,' he added.
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The post Fighting freight fraud an immediate focus at annual meeting of brokers' group appeared first on FreightWaves.
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Instead, if you're concerned it may be legitimate, call the actual entity the person contacting you claims to be from and do so by looking up that entity's real number and website yourself. 'Stop and verify. If it feels urgent, if they're rushing you and creating alarm, and you weren't expecting that contact, go directly to the company or agency that they're claiming to be and check it out,' Fletcher said. Never move money on demand. If you do end up engaging, a clear sign something is wrong is that you're told you have to move money fast. You may be told you have to transfer money out of an account that has been compromised in order to 'protect it.' Or to send money to get yourself out of some sort of (fake) trouble. No legitimate business, government agency or law enforcement entity would require this. Never pay money for the promise of getting more money. Anything financial that sounds too good to be true usually is. 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Among the lies they might tell: Your Social Security number is linked to serious crimes. They're calling about suspicious activity on your account. Or you're in trouble with the law and have to post bond. Or they may offer something that is too good to be true, like easy money for a simple task. In exchange, they will ask you to pay something up front. Among other types of imposter scams are: Tech support scams: These can take the form of a pop-up security alert or audible alarm on your computer, purporting to be from Microsoft or Apple. The message might be that your computer has been hacked, and it will include a number to call for help. Sometimes the criminals will tell you they need to get remote access to your computer to fix something. Prize and sweepstakes scams: It's never the victim's lucky day when a scammer, posing as a representative of a sweepstakes or lottery entity, contacts you and tells you that you have to pay money to get your big prize. To help spot a potential financial scam, keep an eye out for common red flags: A government agency or company contacts you out the blue and makes threats and demands. There are currently imposters even pretending to represent the FTC itself. The FTC notes it 'will never demand money, make threats, tell you to transfer money, or promise you a prize.' The same is true of any reputable business or government agency. You're told to go to a bitcoin ATM or make a bank transfer. Last year, the FTC found that 33% of older adults who reported losing $10,000 or more to an imposter scam said cryptocurrency was the method of payment requested, while 20% said they were asked to make a bank transfer and 16% said they were told to pay in cash. The most typical crypto payment involved sending someone to a bitcoin ATM, which some scammers may refer to as a 'safety locker,' Fletcher said. 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Instead, if you're concerned it may be legitimate, call the actual entity the person contacting you claims to be from and do so by looking up that entity's real number and website yourself. 'Stop and verify. If it feels urgent, if they're rushing you and creating alarm, and you weren't expecting that contact, go directly to the company or agency that they're claiming to be and check it out,' Fletcher said. Never move money on demand. If you do end up engaging, a clear sign something is wrong is that you're told you have to move money fast. You may be told you have to transfer money out of an account that has been compromised in order to 'protect it.' Or to send money to get yourself out of some sort of (fake) trouble. No legitimate business, government agency or law enforcement entity would require this. Never pay money for the promise of getting more money. Anything financial that sounds too good to be true usually is. And that's especially the case when you're being told you need to pay something upfront to get something desirable in return (e.g. a commission, a job, prize winnings, etc.) Don't assume you're too smart to be duped. A scammer can catch anyone at a particularly vulnerable moment. For example, you might already be in a heightened emotional state when you get a call or text; or the focus of the scam may pertain to something you were just dealing with – e.g., you may have recently driven through a number of tolls when a scammer sends you a text about unpaid tolls. 'For each of us there is a scam that can get us at just the wrong moment,' Fletcher said. 'The scammer hijacks your ability to think things through clearly.' Make liberal use of the 'Block Caller' and 'Report Junk' functions on your phone: Getting a call or voicemail from a number you don't recognize should be blocked. The same goes for unsolicited texts and social media messages. And, the FTC warns, don't necessarily trust your caller ID function either, as scammers have been known to 'spoof' it – meaning they can falsify the information sent to your caller ID display. It can happen to anyone. If it happens to you, take steps to minimize your losses and help stop the scammers from victimizing others. Here is an FTC resource page that offers steps you can take if you think you paid a scammer or if the scammer has access to your personal information or to your computer. But, generally speaking you'll want to let your bank and/or other relevant entities such as the credit bureaus or gift card issuers know immediately. To minimize your losses, 'Time is of the essence,' Fletcher said. You also might want to consult a consumer law attorney who specializes in consumer rights and consumer fraud to see what your next best steps are. Then report your scam to the FTC at To prevent others from falling prey to the same type of scam, share your story with people you know. 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To help spot a potential financial scam, keep an eye out for common red flags: A government agency or company contacts you out the blue and makes threats and demands. There are currently imposters even pretending to represent the FTC itself. The FTC notes it 'will never demand money, make threats, tell you to transfer money, or promise you a prize.' The same is true of any reputable business or government agency. You're told to go to a bitcoin ATM or make a bank transfer. Last year, the FTC found that 33% of older adults who reported losing $10,000 or more to an imposter scam said cryptocurrency was the method of payment requested, while 20% said they were asked to make a bank transfer and 16% said they were told to pay in cash. The most typical crypto payment involved sending someone to a bitcoin ATM, which some scammers may refer to as a 'safety locker,' Fletcher said. A case reported by CFA, for instance, involved a scam caller telling a consumer they were 'under arrest for failing to appear in court and was in contempt for missing jury duty. They insisted that the consumer needed to post bond, and the sheriff could not accept a check or credit card. Instead, the scammer directed them to a federal kiosk, specifically a Bitcoin ATM.' You're told to buy gift cards to pay the scammer: Another type of scheme has victims go to one or more stores to buy gift cards and then share the unique numbers and pin with the scammer. There are several ways to reduce your chances of being swindled. Do not engage. When you get an unsolicited call, text, social media message or email – or you get a strange warning alert on your computer – don't respond. Do not call the numbers suggested nor click on any links offered. 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And that's especially the case when you're being told you need to pay something upfront to get something desirable in return (e.g. a commission, a job, prize winnings, etc.) Don't assume you're too smart to be duped. A scammer can catch anyone at a particularly vulnerable moment. For example, you might already be in a heightened emotional state when you get a call or text; or the focus of the scam may pertain to something you were just dealing with – e.g., you may have recently driven through a number of tolls when a scammer sends you a text about unpaid tolls. 'For each of us there is a scam that can get us at just the wrong moment,' Fletcher said. 'The scammer hijacks your ability to think things through clearly.' Make liberal use of the 'Block Caller' and 'Report Junk' functions on your phone: Getting a call or voicemail from a number you don't recognize should be blocked. The same goes for unsolicited texts and social media messages. And, the FTC warns, don't necessarily trust your caller ID function either, as scammers have been known to 'spoof' it – meaning they can falsify the information sent to your caller ID display. It can happen to anyone. If it happens to you, take steps to minimize your losses and help stop the scammers from victimizing others. Here is an FTC resource page that offers steps you can take if you think you paid a scammer or if the scammer has access to your personal information or to your computer. But, generally speaking you'll want to let your bank and/or other relevant entities such as the credit bureaus or gift card issuers know immediately. To minimize your losses, 'Time is of the essence,' Fletcher said. You also might want to consult a consumer law attorney who specializes in consumer rights and consumer fraud to see what your next best steps are. Then report your scam to the FTC at To prevent others from falling prey to the same type of scam, share your story with people you know. 'Pass on what you know. Research supports that word of mouth is the top way people hear about scams,' Fletcher said.
