The Federal Motor Carrier Safety Administration (FMCSA) announced significant updates to its registration system during the Mid-America Trucking Show in Louisville, Ky. They acknowledged that their current system had fallen behind and had allowed widespread fraud to occur. The FMCSA promised to completely revamp their verification processes and enhance the overall user experience. One major change involves doing away with MC numbers and relying solely on USDOT numbers as the identifier for carriers, brokers, and freight forwarders. This means that carriers and others will need to make adjustments on their end to comply with the new system.
Tom Keane, an official at FMCSA, explained that while their registration system was once strong, it has become outdated over time and needs modernization.
The proposed changes are still in the early stages, with many details yet to be finalized. FMCSA plans to engage industry stakeholders for feedback through a rulemaking process and an upcoming industry stakeholder day. The primary focus of these changes is on enhancing security and preventing fraud, as fraud within the freight industry has reached alarming levels.
To address these concerns, FMCSA intends to incorporate identification and business verification tools into the registration process. This includes measures like multi-factor authentication and outsourcing verification services to trusted firms. These changes will apply to both new applicants and existing registrants.
FMCSA aims to clean up fraudulent activities within the industry by thoroughly vetting all entities in their database and taking action against those found in violation. They plan to implement these initial steps within the next 90 days to swiftly mitigate fraud risks.
Additionally, FMCSA plans to streamline the registration process by eliminating unnecessary questions and redundancies. They will also integrate real-time verification to ensure accuracy and efficiency.
The agency intends to replace the MC number with the USDOT number as the primary identifier and implement automated processes for paperwork handling. They will also require active monitoring of contact information to ensure timely communication with carriers.
FMCSA will provide guidance to existing entities regarding these changes and caution against falling victim to impersonation scams. They will also accommodate blanket companies within the new system and ensure mobile responsiveness for user convenience.
Officials from FMCSA expressed optimism about the updates and emphasized their commitment to supporting business and safety initiatives. Initial responses from carriers surveyed at the event were positive, indicating a favorable reception to the proposed changes.
