During the Mid-America Trucking Show in Louisville, Ky., the Federal Motor Carrier Safety Administration (FMCSA) openly acknowledged the existing flaws in its registration and verification processes, which have unfortunately led to a significant rise in fraudulent activities. In a clear demonstration of their commitment to rectify the situation, the FMCSA has outlined a series of comprehensive reforms. These reforms are designed to not only bolster security but also streamline operations, with the ultimate goal of enhancing the experience for carriers, brokers, and freight forwarders.
The key changes that the FMCSA is implementing include the discontinuation of MC numbers and the transition to USDOT numbers as the primary identifier for all entities. These changes, along with the stricter verification processes, are expected to significantly reduce instances of fraud. Moreover, they will also simplify the registration process for carriers, brokers, and freight forwarders, making it more efficient and less time-consuming.
“Obviously, we’ve had our registration system in current form for many years,” said Tom Keane, associate administrator of the Office of Research & Registration at FMCSA. “It was robust when it was originally designed, but it’s become very dated over the years and we need to modernize.”
FMCSA’s director of the Office of Registration and Safety Information, Ken Riddle, emphasized the urgency of these reforms, recognizing the need for enhanced protection of carriers. Initial measures, such as implementing identification and business verification tools, will be rolled out within the next 90 days.
“Freight fraud is at an all-time high,” Riddle said. “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 revamped system will guide users through registration processes, verify information in real-time, and eliminate arbitrary wait times. By the start of fiscal year 2025, FMCSA anticipates a fully overhauled registration system with improved user experience and heightened security measures.
FMCSA plans to communicate these changes to stakeholders through industry events and outreach efforts. Additionally, entities will be informed directly, and cautionary measures will be taken to prevent scams targeting carriers.
“We can’t wait on a new registration system,” Riddle said. “We need to do it just as soon as we possibly can to mitigate fraud and protect you.”
The new system will introduce individual accounts for entities with inactive USDOT numbers resulting from non-compliance with requirements. Blanket companies will also have accounts, facilitating streamlined form completion.
Riddle provided a preview of the redesigned website and demonstrated its functionality, ensuring compatibility with mobile devices. These reforms signal FMCSA’s commitment to combatting fraud and enhancing efficiency in the trucking industry’s registration processes.
“Six months ago, fraud prevention wasn’t our priority,” Riddle said. “Today, it is. Because we heard from you and the industry how bad it is and how much it’s needed.”
Source: Commercial Carrier Journal
