FMCSA To Overhaul Registration System
The Mid-America Trucking Show has come and gone, with one of the biggest entities speaking at the event being the FMCSA (Federal Motor Carrier Safety Administration), which started the conference with some big news: they admit that there is a problem with fraud in the current system, and they are taking steps to fix it.
Details
“Freight fraud is at an all-time high,” said Ken Riddle, the FMCSA’s director of the Office of Registration and Safety Information. “Every corner of the industry is experiencing fraud, whether on the carrier side, the broker side, you name it. We’ve heard from carriers and from the trade press asking ‘What can you do to help?’ We heard you, we’re listening, and we’re going to help.”
The short version of what the FMCSA plans to do is to increase the standards required by which companies verify themselves in the system, and they plan to enact it retroactively as well.
“…we’re going to run all existing registrants, everybody in our database, over 800,000 entities,” he said. “If they don’t go through with it or refuse to or don’t pass, we’ll start with revocation proceedings. We’re going to clean up the bad actors.”
Conclusion
Currently, the FMCSA has plans to slowly enact this higher scrutiny to registered entities starting within the next ninety days. You should expect to eventually be asked by the FMCSA for a quality update of your information so as to make sure that you are who you say you are.
While this process is expected to be cumbersome when it finally arrives on your doorstep, the FMCSA believes that the juice is worth the squeeze, considering everything it has heard from the trucking industry as of late regarding fraud. “Six months ago, fraud prevention wasn’t our priority,” said Riddle. “Today, it is. Because we heard from you and the industry how bad it is and how much it’s needed.”
Beyond fraud mitigation, Riddle mentioned at the Mid-American Trucking Show plans to rework the online registration system that will make it quicker and easier to fill out, hopefully mitigating the burden that comes with extra security.
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