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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 - - 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
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Government sites and data bases are keyed toward Safety (NOT Security) FMCSA / DOT / NHTSA / DMV
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MTC Fraud
- Identity Theft
- License Abuse
- Subcontracting and Double-
Brokering
- Fraudulent Fuel Advances
- Ransom / Hostage Loads
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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
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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
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- Instruct Shipper to check MC # on
side of tractor
- Verify driver’s Identity and License
Number
SUBCONTRACTING AND DOUBLE-BROKERING DUE DILIGENCE
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FRAUDULENT FUEL ADVANCES
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“Scooby Doo Trucking” obtains load posted to Transcore 360 board at a rate of $2,400. “Daphne” cashes Comchek issued to driver for Scooby Doo Trucking “Scooby Doo Trucking” sends Bill of Lading to Jwyle E. Coyote Logistics and requests a fuel advance. Scooby Doo Trucking Bugs Bunny Logistics $1,240 Comchek is issued. Reality Trucking attempts to contact “Bugs Bunny Logistics” and is unable to make contact
Wyle E. Coyote Logistics Bugs Bunny Logistics Reality Trucking invoices Bugs Bunny Trucking, who has no knowledge of the load
Daphne Acme
Reality Trucking sends Bill of Lading to “Bugs Bunny Logistics” per the Rate Confirmation “Bugs Bunny Logistics” double brokers the load to Reality Trucking at a rate of $3,000.
Reality Trucking
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This is usually the routing number But, on Comchek, this is the check number
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- 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
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- Comchek fraud occurs in various States
across the country
- Use outside operatives to cash the
fraudulently acquired Comchek
MODUS OPERANDI FOR COMCHEK FRAUDS
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- 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
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- 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
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- Speak to truck stop employee and
confirm identity of person requesting payment
FRAUDULENT FUEL ADVANCES COUNTERMEASURES
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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
- f payment.
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