TIA Launches New Industry Fraud Report

[Alexandria, Va., Jan. 18, 2024] TIA is launching a new quarterly fraud report to highlight the damage that freight fraud is having on the supply chain industry.

Collaborating with the International Factoring Association, the global leader among associations for accounts receivable finance organizations, the TIA Fraud Task Force will work with its members to highlight how often fraud happens in the industry; what commodities are most targeted and how much fraud is costing shippers, brokers and carriers annually.

“Freight fraud is our members number one priority,” said Anne Reinke, president & CEO of the TIA. “We do not feel that the federal government, FBI or local police are understanding the extent of fraud that happens in the supply chain industry. Fraud costs victims an estimated $500 million to $700 million in freight payments annually.”

With an annual revenue of more than $700 billion, the trucking and logistics industry is a big target. This common fraud occurs when bad actors, masquerading as motor carriers, logistics companies, or fraudulent entities steal or re-broker loads without the knowledge or consent of any of the parties to the transaction. Fraudulent entities will often steal the identities of legitimate motor carriers and find other victims to take freight and withhold payment.

Tania Daniel, executive director of the International Factoring Association, expressed her support for the collaborative effort, stating, “Combating fraud requires a unified front, and the cooperation between TIA and the International Factoring Association is a crucial step towards safeguarding the integrity of the industry.”

To help members combat fraud, TIA offers a free course “Fraud in the Supply Chain“, which helps brokers develop selection policies to combat fraud. Additionally, TIA will be releasing an updated Framework to Combat Fraud. This comprehensive framework covers all the types of fraud currently perpetuated in the supply chain and feedback on how to handle these situations when faced with them. This is the third update to this important framework since its inception in 2015.

Furthermore, stay tuned for the highly anticipated whitepaper on fraud and the supply chain and how shippers are addressing this crisis. The whitepaper will provide seven best practices for shippers to mitigate the risk of freight fraud and what they are looking for in their brokers.

The first quarterly Fraud Report is expected to be released in Quarter 2 2024.