Latest news with #HouseholdGoodsShippingConsumerProtectionAct
Yahoo
5 days ago
- Business
- Yahoo
Check Call: Fight against freight fraud gets help in the Senate
It's not very often the transportation industry gets a win on Capitol Hill. But it seems the conversation around fraud has gotten national attention as the Committee on Commerce, Science, and Transportation advanced the Household Goods Shipping Consumer Protection Act (S. 337). Championed by Sens. Deb Fischer, R-Neb., and Tammy Duckworth, D-Ill., the bill seeks to restore and enhance the Federal Motor Carrier Safety Administration's authority to address fraud and deceptive practices in freight transportation. Specifically, the bill grants FMCSA essential enforcement powers to: Assess civil penalties for unauthorized brokerage activity. Enforce the principal-place-of-business requirement. Examine commonalities among companies registering for operating authority. 'This bipartisan legislation gives FMCSA much-needed tools to protect consumers from fraud in the interstate shipment of goods,' said Transportation Intermediaries Association President and CEO Chris Burroughs in a news release. 'With freight fraud costing the industry an estimated $35 billion annually, this bill equips the agency to protect consumers, businesses, and the supply chain. We thank Senators Fischer and Duckworth for their leadership in addressing this growing crisis and helping restore integrity to the freight network.' The bill has been added to the Senate legislative calendar, marking a crucial first step in the legislative process. The journey to becoming a law has only just begun, but important steps have been taken to protect the industry and attempt to get a handle on other piece of legislation, which has been referred to the House Committee on the Judiciary, is the Combating Organized Retail Crime Act. The bill seeks to improve coordination and information sharing among federal, state and local law enforcement agencies while increasing penalties for those found guilty of committing fraud. Currently, there is little victims of fraud can do. Motor carrier numbers under which fraud is committed should always be reported to the FMCSA. If cargo theft is involved, police reports should be filed. There are few long-term ramifications that fraudsters face at present. If the MC gets flagged as fraudulent, they disappear and come back with another. It's a hopeful sign that legislation is being introduced to help address the issue, especially since the Household Goods Shipping Consumer Protection Act has left committee – arguably one of the biggest hurdles in the entire process. Meanwhile, even if these measures succeed, it will be an industrywide effort to get freight fraud under the full edition of Check Call in your inbox every Tuesday by subscribing down below. The post Check Call: Fight against freight fraud gets help in the Senate appeared first on FreightWaves.
Yahoo
13-05-2025
- Business
- Yahoo
Check Call: TIA's annual fraud report spotlights surge in incidents
The Transportation Intermediaries Association (TIA) has released its April 2025 'State of Fraud in the Industry' report, revealing a significant surge in freight fraud incidents that are impacting 3PLs and freight brokers nationwide. From Sept. 1, 2024, through Feb. 28, 2025, there were 1,611 fraud reports filed across seven key categories — an increase of 65% from the prior eight-month reporting period. Key findings: Truckload freight as primary target: An overwhelming 97% of respondents identified truckload freight as the mode most susceptible to fraud. Prevalence of unlawful brokerage: Unlawful brokerage schemes, in which fraudsters impersonate legitimate brokers to misappropriate loads or payments, were cited by 34% of respondents as the most common fraud tactic encountered. Multiple fraud types experienced: Some 83% of respondents reported encountering at least three different types of fraud within the past six months. Widespread geographic impact: Fraud incidents have been reported across nearly every region, with Texas, California, South Carolina and Washington identified as top states where fraudulent activities originated. Financial strain on small businesses: About 22% of respondents reported losses exceeding $200,000 due to fraud in the past six months, while 10% have invested over $200,000 in fraud prevention measures. Chris Burroughs, TIA president and CEO, emphasized the severity of the situation: 'Our members are on the front lines of this crisis, and when fraud hits, they need to act fast.' TIA has also released a Post-Fraud Incident Checklist. Burroughs said, 'This checklist gives 3PLs and freight brokers a clear, tactical guide they can turn to in the heat of the moment — and we believe it's going to make a real difference.' The report highlights the evolution of fraud tactics, including: Identity theft and spoofing: Fraudsters are increasingly using identity theft and spoofing techniques, with 42% of respondents citing these as common fraud experiences. Compromised communications: There has been a steady increase in impersonation attempts, unauthorized contact changes and bad actors attempting to gain access to broker networks. The report also delivers a strong message to policymakers: Now is the time for coordinated action. TIA is urging the Federal Motor Carrier Safety Administration to crack down on fraudulent carriers and remove illegitimate listings from its databases. The association is also calling on Congress to pass the Household Goods Shipping Consumer Protection Act and the Combating Organized Retail Crime Act, which would provide additional tools for law enforcement to investigate and prosecute this crime. For a comprehensive understanding of the findings and recommendations, access the full TIA fraud report here. Market Check. Dallas sees more than just the FreightWaves Freight Fraud Symposium this week, as outbound tender rejections have fallen 1.23% week over week. Rejections are sitting at 4.82% in this relatively stable freight market. Volatility comes when rejections are at or above 7% for many weeks, which was seen throughout April in Dallas. With rejection rates lowering, brokers and shippers can expect stronger contract carrier compliance. Secondary carriers will see less award volumes and freight coming out of Dallas. Brokers can take their time when it comes to prioritizing coverage for lanes. Spot rates continue to leave a lot to be desired as rejections fall, meaning the rates from April will be on the high side when bidding for freight. Who's with whom. After months of escalating tensions and economic uncertainty, a welcome pause has arrived in the U.S.-China tariff standoff. The two global powers have agreed to a 90-day suspension of most tariffs that have been in place since April 2, offering a reprieve and an opportunity for further negotiations over the next three months. As part of the agreement, both nations will begin rolling back many of the reciprocal tariffs that have defined the trade dispute. U.S. tariffs on Chinese goods will fall from 145% to 30%, and China's tariffs on U.S. goods will fall back to 10%. These lower tariff rates are set to take effect Wednesday, signaling the first tangible sign of de-escalation in what has been a prolonged trade battle. Beyond tariff reductions, the deal addresses key nontariff barriers. Beijing has committed to suspending or canceling several retaliatory measures, including export restrictions and the blacklisting of dozens of U.S. companies. This is seen as a significant move to rebuild trust and open dialogue between the two economies. One of the most critical components of the new agreement centers on intellectual property rights. Article 1.1 of the agreement reaffirms both nations' commitment to respecting IP rights, while Article 1.2 mandates the fair, adequate, and effective protection and enforcement of those rights. It also guarantees equitable market access to companies whose businesses depend on robust IP protections. The agreement comes at a pivotal time. Just last month, concerns were raised as certain Chinese manufacturers began promoting luxury goods at significantly reduced prices, raising red flags about potential IP violations. This temporary trade truce may help curb those practices and ensure a more level playing field. For U.S. retailers and importers facing an average transit time of about 20 days for goods traveling from Chinese ports to the U.S. West Coast, this window allows companies to pull forward inventory or restock products that may have run low during the high-tariff period. The more you know Highway releases Freight Fraud Index revealing 400,000 sophisticated fraud attempts in Q1 2025 CEVA Logistics acquires Turkish logistics company Borusan Tedarik XPO sees minimal shipper conversion from LTL to TL Taking on Porter, Uber launches logistics service Courier XL for delivery of large goods Logistics firm buys $2M in Trump meme coins to boost US-Mexico trade The post Check Call: TIA's annual fraud report spotlights surge in incidents appeared first on FreightWaves.
Yahoo
30-01-2025
- Business
- Yahoo
Lawmakers reintroduce anti-fraud freight bill
WASHINGTON — The growing threat of freight fraud in trucking has led to another effort by Congress to crack down on scammers that steal millions from legitimate brokers and motor carriers. Bipartisan legislation introduced in the House of Representatives by Congresswoman Eleanor Holmes Norton, Washington's nonvoting delegate in the House, would give the Federal Motor Carrier Safety Administration more power over fake companies attempting to register with the agency. Specifically, the Household Goods Shipping Consumer Protection Act 'would clarify that FMCSA has the authority to assess civil penalties against fraudulent actors that hold consumers' personal goods hostage, allow FMCSA to leverage states' enforcement of federal consumer protection laws related to the transportation of household goods and establish requirements to ensure that motor carriers, brokers and freight forwarders that seek registration are operating legitimate businesses,' Holmes Norton said in a statement. 'This bill would also provide explicit authority for FMCSA to withhold registration from any applicant that fails to provide a valid principal place of business or disclose common ownership with any other registered entities at the time of registration.' While a major target of the legislation is fraud that occurs in the household goods sector, the stricter registration requirements and enforcement provisions would apply to all freight carriers and brokers that register with FMCSA. The legislation is endorsed by the Transportation Intermediaries Association, the American Trucking Associations, the Owner-Operator Independent Drivers Association, the National Association of Small Trucking Companies, the Commercial Vehicle Safety Alliance, the Institute for Safer Trucking and Road Safe America. 'Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,' said OOIDA President Todd Spencer in a press release. 'Because of the broad industry support for these common sense reforms, we hope this bipartisan legislation will move through the committee process without delay.' Similar legislation introduced in the last Congress with 24 co-sponsors (14 Republicans, 10 Democrats) was approved out of the House Transportation and Infrastructure Committee by a vote of 62-2. This year U.S. Sens. Deb Fischer, R-Neb., and Tammy Duckworth, D-Ill., are introducing a Senate companion bill. 'Re-introducing this bill shows their commitment to implementing strong anti-fraud laws, which could markedly reduce fraud in the supply chain, minimize financial losses to small business and restore integrity to the nation's freight sector,' said TIA President Chris Burroughs in a news release. 'This bill is good for the industry, consumers and the American economy.' FMCSA proposes new rules on broker transparency FMCSA tightens regulations to prevent fraud by brokers How freight fraud became the perfect crime Click for more FreightWaves articles by John Gallagher. The post Lawmakers reintroduce anti-fraud freight bill appeared first on FreightWaves.
