Destruction: The Rise of Freight Scams & Cargo Theft
FreightCaviar was at the Transportation Intermediaries Association (TIA) Conference in Orlando this past week, where the rise in scams and fraudulent activity in the trucking industry was a major topic of discussion.
In this clip, we captured a story about an address in Wyoming with more than 360 companies operating out of it, according to FMCSA data. The response? “Don’t worry, they all have different suite numbers.”
Another video highlights the hundreds of authorities issued weekly. A scammer boldly claims that a shutdown on one authority means nothing when he has “235 more authorities” going after more victims.
What can be done about freight scams?
While government intervention lags, two companies have stepped up to combat double brokering using the power of data, FreightWaves reports. TriumphPay and Highway are combining their data on cash flows and company equipment to catch double brokers red-handed.
- TriumphPay handles over $23 billion in payments annually, giving it unique insight into fraudulent activity.
- Estimates of “by-the-letter double brokering” amount to around $500 million to $700 million per year.
- When comparing numbers from TriumphPay with equipment data from Highway, big mismatches raise red flags.
Truckstop Survey on Fraud
- 78% of respondents lost time resolving fraud-related issues
- 65% lost money due to fraud
- 24% faced legal implications from fraud
Freight Scams Require Action
Scammers creating multiple Motor Carrier (MC) numbers and the increasing prevalence of double brokering is a serious concern for the industry. While the collaboration between TriumphPay and Highway is a positive step toward addressing the issue, there is a need for greater governmental action to stop fraud.
TIA’s conference also highlights the role brokers can play in slowing this crisis and identifying fraudulent activities simply by giving it continued conversation and attention.
Container with $20M in gold, stolen at Toronto Airport
During a panel on the rise of cargo theft, we got news of a daring airport heist. Thieves stole a shipping container filled with roughly $20 million in gold and other high-value items. This theft down at the Toronto Pearson International Airport, reports GlobalNews.
How it went down
An aircraft landed at the airport on the evening of April 17. The cargo, including the container, was transported to a holding facility. The container was then removed “by illegal means” from the facility and later reported missing.
The Greater Toronto Airports Authority (GTAA) clarified that the thieves accessed the public side of a warehouse leased to a third party, outside of their primary security line. As of now, no information regarding suspects has been released.