Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/791967
March 2017 | Overdrive | 25 most common cargo theft, says Scott Cornell, a vice president at Travelers Insurance. What he calls "strategic thefts" represent the fastest-growing method of cargo theft, now account- ing for about 10 percent of thefts nationwide. Most incidents are coming in Illinois and Southern California, Cornell says. Since the thefts nearly always have an online identity fraud component, thieves "can target something no matter where it is," he says. Part of the attrac- tion for thieves "is that you can be very selective. You can pick out what you want to target rather than randomly picking out a trailer." As FreightWatch noted about the first quarter of 2016, fictitious pickups showed the "highest average loss value of any single theft type." As the CargoNet paper illustrates, this kind of theft takes advantage of the rise of web-based brokering and the sometimes tenuous nature of broker- carrier relationships on the spot market. It's also trading on the increase in thieves' "ability to set up fictitious com- panies and websites, and the availability of high-quality fraudulent driver's licens- es. The just-in-time supply chain man- agement practices have exacerbated the problem by putting a premium on speed at the expense of performing time-con- suming due diligence in vetting" carriers by brokers and, in some instances, com- pany employees by carriers. "Computer-savvy criminals (often former employees of trucking and logis- tics companies)," the report goes on to TIPS: PREVENTING FICTITIOUS PICKUPS Owner-operators running with their own authority should take the same precautions as a larger fleet to protect against identity theft that could lead to a fraudulent pickup. Here are some tips: • Regularly log into your carrier profile with your DOT-issued PIN to keep all contact information updated, likewise proofing for any unauthorized changes. During a panel on cargo theft at a recent Truckstop.com conference, speakers referenced possible vulner- abilities in DOT's processes. They allow for MCS-150 carrier information updates in a manner other than online updates using the PIN. Cases were detailed in which thieves may have used such methods to change contact information on a carrier's profile to go directly to them, thus enabling bandits to secure a load as that carrier with a broker. • If you don't have a DOT PIN to take control of your profile online, visit fmcsa.dot.gov/registration/ request-pin-number, or call (800) 832-5660. • Be careful who has access to a PIN, says CargoNet Vice President Sal Marino. While some people believe car- rier identity is compromised largely by hacking into DOT, Marino doesn't think that's the case. Too many fraud cases, he says, may be the result of the PIN being shared too much internally, then getting out to the wrong party. Queries to FMCSA about these issues went unanswered as of press time. FOR BROKERS: The new threats require better diligence when vetting unfamiliar carriers: • Double- and triple-check the iden- tities of company representatives via phone calls to the legitimate company home. • Match phone numbers and other contact/address information to the home city, state and U.S. Department of Transportation (Safer.gov and the CSA Safety Measurement System) list- ings for the business. Have you ever had a truck, trailer, load or part of a load stolen? OverdriveOnline.com poll No 68% More than one of these combinations 2% Full tractor-trailer and load 8% Equipment only, no cargo 13% Cargo only (including part of a load) 9% Before assuming his current role at Travelers Insurance, Scott Cornell headed the insurance company's Special Investigations Group devoted to cargo theft. Courtesy of Travelers Insurance