Motor Truck Cargo Fraud and Deceit Presented for by Jeff Hall - PowerPoint PPT Presentation

Motor Truck Cargo Fraud and Deceit Presented for by Jeff Hall & Sam Wadhwani Transit Risk Management August 20, 2015

Fraud and Deceit are a growing problem in the trucking industry

Government sites and data bases are keyed toward Safety (NOT Security) FMCSA / DOT / NHTSA / DMV

MTC Fraud • Identity Theft • License Abuse • Subcontracting and Double- Brokering • Fraudulent Fuel Advances • Ransom / Hostage Loads

SUBCONTRACTING AND DOUBLE-BROKERING • Perpetrators apply and acquire an internet posting/load • They then sub-contract the load to a legitimate carrier • They instruct the legitimate to deliver the load to an address of their choice

SUBCONTRACTING AND DOUBLE-BROKERING DUE DILIGENCE • Use organizations and databases to verify age of trucking company/avoid using recently established ones • Check insurance history on FMCSA

SUBCONTRACTING AND DOUBLE-BROKERING DUE DILIGENCE • Instruct Shipper to check MC # on side of tractor • Verify driver’s Identity and License Number

FRAUDULENT FUEL ADVANCES

“Daphne” cashes Comchek issued to “Scooby Doo Trucking” driver for Scooby Doo sends Bill of Lading to Trucking Jwyle E. Coyote Daphne Logistics and requests a Acme fuel advance. $1,240 Comchek is issued. Wyle E. Coyote Logistics Bugs Bunny Logistics “Scooby Doo Reality Trucking invoices Trucking” obtains Bugs Bunny Trucking, load posted to who has no knowledge of Scooby Doo Transcore 360 board the load Trucking at a rate of $2,400. “Bugs Bunny Logistics” double brokers the load to Bugs Bunny Reality Trucking at a Logistics rate of $3,000. Reality Reality Trucking Trucking attempts to contact sends Bill of “Bugs Bunny Lading to Logistics” and is “Bugs Bunny unable to make Logistics” per contact the Rate Reality Trucking Confirmation

This is usually the routing number But, on Comchek, this is the check number

MODUS OPERANDI FOR COMCHEK FRAUDS • Perpetrators search for Cross-Country loads with larger fuel advances • Preferred day is Friday • Spoofed phone number and IP addresses are used to communicate with broker, gain carrier information and create fraudulent documents

MODUS OPERANDI FOR COMCHEK FRAUDS • Comchek fraud occurs in various States across the country • Use outside operatives to cash the fraudulently acquired Comchek

FRAUDULENT FUEL ADVANCES COUNTERMEASURES • Communicate directly with the “driver”  If not at truck stop, instruct driver to call back from a truck stop landline for advance payment Phone number should geographically match area where driver claimed he was.

FRAUDULENT FUEL ADVANCES COUNTERMEASURES • Compare contact information provided by caller against KNOWN contact information.Compare EVERYTHING . • Communicate directly with the “driver”. Ask for driver’s identity. Ask for driver’s location – specific truck stop.

FRAUDULENT FUEL ADVANCES COUNTERMEASURES  Speak to truck stop employee and confirm identity of person requesting payment

FRAUDULENT FUEL ADVANCES BEST PRACTICES • If the rate seems “too good to be true”…IT IS. • When picking up, ask shipper for Carrier of Record. Is it the broker who “hired” you? • Compare destinations between BOL and your rate confirmation • Take the time to confirm – this is your source of payment.

QUESTIONS AND ANSWERS THANK YOU