Strengthening Freight Operations: How Truckstop’s RMIS is Designed to Help Brokers Combat Fraud

In today’s freight landscape, fraud and cargo theft are escalating concerns. Brokers are increasingly seeking robust solutions to protect their operations and maintain trust with carriers and shippers. Truckstop’s RMIS (Registry Monitoring Insurance Services) stands out as a pivotal tool in this fight, offering advanced carrier vetting, continuous monitoring, and compliance management.

The rising threat of fraud in freight

Fraudulent activities, including identity theft and double brokering, are becoming more sophisticated, posing significant risks to freight operations. The Federal Motor Carrier Safety Administration (FMCSA) highlights the prevalence of such fraud, emphasizing the need for vigilant practices.

RMIS: A comprehensive defense against fraud

RMIS equips brokers with a suite of tools designed to verify carrier identities, assess risks, and ensure compliance. Here’s how:

Rigorous carrier verification

• Data-driven risk assessment: RMIS employs the Risk Assessment System (RAS) to cross-verify carrier Tax Identification Numbers (TINs) with IRS data, identifying high-risk carriers based on asset, contact, and digital risk factors. This helps to ensure only qualified carriers access your network.
• Risk factors technology: By analyzing billions of data points, RMIS provides a holistic view of carrier risk, integrating seamlessly into various workflows, including Transportation Management Systems (TMS), emails, and browsers.
• ID verification: Utilizing government-issued IDs and biometric facial recognition, RMIS ensures that carriers are accurately identified, preventing unauthorized access to broker networks.

Continuous monitoring and rapid risk detection

• Persistent carrier activity monitoring: RMIS continuously analyzes data from multiple sources, detecting patterns indicative of fraud, such as frequent contact changes or abnormal location data.
• Automated alerts: Brokers receive real-time notifications of any suspicious activities, enabling swift action to mitigate potential threats.
• Integration with blocklists: RMIS automatically decertifies carriers flagged on DOT Blocklists, ensuring that brokers are protected from known fraudulent entities.

Streamlined compliance and document management

• Access to safety data: RMIS provides brokers with up-to-date FMCSA safety data, inspection histories, and safety ratings, facilitating informed decision-making.
• Secure document handling: All essential carrier documents, including W-9s and insurance certificates, are securely stored and managed within RMIS. This includes W-9 verification using carrier TIN cross-referenced with IRS records in real-time, helping brokers remain compliant and avoid tax-related errors. Additionally, OFAC screening is applied, ensuring sanctioned entities are automatically prevented from onboarding.
• Enhanced carrier API integration: RMIS delivers critical risk data directly into brokers’ core operating systems, ensuring that compliance information is readily accessible. This includes carrier documents like insurance certificates, W9s, and agreements. This supports audit-grade workflows, minimizes manual follow-up, and ensures data consistency across platforms.

The insurance perspective: Emphasizing anti-fraud measures

Insurance providers are increasingly recognizing the importance of anti-fraud technologies. The National Association of Insurance Commissioners (NAIC) encourages insurers to develop comprehensive antifraud plans, incorporating advanced technologies to detect and prevent fraudulent activities.

While specific mandates regarding the use of systems like RMIS vary, the trend is clear: integrating robust anti-fraud measures is becoming a standard expectation in the industry.

Proactive measures for a secure future

In an era where fraud poses significant challenges to freight operations, tools like RMIS are indispensable. By implementing RMIS, Truckstop customers not only fortified their fraud mitigation processes and significantly reduced their exposure to fraud, but they also reported up to 80% faster carrier onboarding and 1-2 day insurance updates.

Ready to move faster while staying compliant? Talk to us about RMIS.

Disclaimer:

The effectiveness of Truckstop’s RMIS platform in helping mitigate fraud depends on proper implementation and consistent use of its features, including but not limited to identity verification, Risk Assessment System (RAS), Risk Factors, and continuous monitoring. While RMIS is designed to significantly reduce exposure to fraud, no tool can eliminate all risks. Fraud tactics are constantly evolving, and it is essential for brokers to remain vigilant and proactive. Truckstop is committed to evolving our tools and processes to stay ahead of emerging threats, but customers must also take active steps to review, respond to alerts, and follow best practices to maximize their protection.