Latest news with #CombatingOrganizedRetailCrimeAct
Yahoo
03-06-2025
- Business
- Yahoo
Check Call: Fight against freight fraud gets help in the Senate
It's not very often the transportation industry gets a win on Capitol Hill. But it seems the conversation around fraud has gotten national attention as the Committee on Commerce, Science, and Transportation advanced the Household Goods Shipping Consumer Protection Act (S. 337). Championed by Sens. Deb Fischer, R-Neb., and Tammy Duckworth, D-Ill., the bill seeks to restore and enhance the Federal Motor Carrier Safety Administration's authority to address fraud and deceptive practices in freight transportation. Specifically, the bill grants FMCSA essential enforcement powers to: Assess civil penalties for unauthorized brokerage activity. Enforce the principal-place-of-business requirement. Examine commonalities among companies registering for operating authority. 'This bipartisan legislation gives FMCSA much-needed tools to protect consumers from fraud in the interstate shipment of goods,' said Transportation Intermediaries Association President and CEO Chris Burroughs in a news release. 'With freight fraud costing the industry an estimated $35 billion annually, this bill equips the agency to protect consumers, businesses, and the supply chain. We thank Senators Fischer and Duckworth for their leadership in addressing this growing crisis and helping restore integrity to the freight network.' The bill has been added to the Senate legislative calendar, marking a crucial first step in the legislative process. The journey to becoming a law has only just begun, but important steps have been taken to protect the industry and attempt to get a handle on other piece of legislation, which has been referred to the House Committee on the Judiciary, is the Combating Organized Retail Crime Act. The bill seeks to improve coordination and information sharing among federal, state and local law enforcement agencies while increasing penalties for those found guilty of committing fraud. Currently, there is little victims of fraud can do. Motor carrier numbers under which fraud is committed should always be reported to the FMCSA. If cargo theft is involved, police reports should be filed. There are few long-term ramifications that fraudsters face at present. If the MC gets flagged as fraudulent, they disappear and come back with another. It's a hopeful sign that legislation is being introduced to help address the issue, especially since the Household Goods Shipping Consumer Protection Act has left committee – arguably one of the biggest hurdles in the entire process. Meanwhile, even if these measures succeed, it will be an industrywide effort to get freight fraud under the full edition of Check Call in your inbox every Tuesday by subscribing down below. The post Check Call: Fight against freight fraud gets help in the Senate appeared first on FreightWaves.
Yahoo
19-05-2025
- Business
- Yahoo
High grocery prices? Grocery stores blame the thieves
If you continue to shell out more and more for groceries, one major grocery retailer says: blame the thieves. Stop & Shop, which runs more than 300 markets across the Northeast, has penned a letter to Congress saying retailers like them are operating on 'razor-thin' margins and are 'struggling with the vast impact of organized retail crime.' The company is urging Congress to pass the 'Combating Organized Retail Crime Act,' which has now been reintroduced. The bipartisan legislation specifically targets flash mob robberies and what it calls 'intricate retail theft schemes.' It cites data from the National Retail Federation showing larceny incidents increased by 93 percent in 2023 compared with 2019. The letter says that in recent years, 'criminal organizations have increasingly turned to retail crime to generate illicit profits, using internet-based tools to organize flash mobs, sell stolen goods and move money.' 117 arrested in retail theft crackdown across California Stop & Shop says it does not, 'under any circumstances take a neighborhood's demographics into consideration when setting prices. The specific process for setting prices is highly confidential and competitively sensitive for any major retail business.' But theft has been weighing on retailers. Albertson's, which operates Vons and Pavilions, referred an inquiry about the retail theft trend and its impact on grocery prices to the California Retailers Association. Similar requests were sent to Kroger, parent company of Ralphs, and also to Whole Foods. The California Retailers Association says online that it's committed to working with all stakeholders interested in solutions to retail theft and that this issue 'is too important to the safety of employees, customers, and communities.' It does not address the specifics of how those retail thefts may be increasing grocery prices. Here in Los Angeles, District Attorney Nathan Hochman has launched a new campaign to crack down on retail theft, speaking in front of a 7-Eleven recently ransacked by dozens of teens. The district attorney also reiterated that the tide has changed in California. Proposition 36 makes certain thefts a felony, and the district attorney says thieves will be prosecuted to the full extent of the law. Thefts prompt Southern California grocery store to change bag policy Consumer Confidential's David Lazarus calls it a big and growing problem, saying 'theft, particularly involving brazen mobs of shoplifters, have become all too common among merchants selling everything from clothing to electronics.' As for what can be done about it? Lazarus says, 'At this point, the retail industry is responding with new security measures, such as limiting the number of customers inside a shop or hiring more guards. For consumers, this only adds to costs — and provides another reason to shop online. Whether lawmakers in Congress can address that in a meaningful fashion remains to be seen.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-05-2025
- Business
- Yahoo
Check Call: TIA's annual fraud report spotlights surge in incidents
The Transportation Intermediaries Association (TIA) has released its April 2025 'State of Fraud in the Industry' report, revealing a significant surge in freight fraud incidents that are impacting 3PLs and freight brokers nationwide. From Sept. 1, 2024, through Feb. 28, 2025, there were 1,611 fraud reports filed across seven key categories — an increase of 65% from the prior eight-month reporting period. Key findings: Truckload freight as primary target: An overwhelming 97% of respondents identified truckload freight as the mode most susceptible to fraud. Prevalence of unlawful brokerage: Unlawful brokerage schemes, in which fraudsters impersonate legitimate brokers to misappropriate loads or payments, were cited by 34% of respondents as the most common fraud tactic encountered. Multiple fraud types experienced: Some 83% of respondents reported encountering at least three different types of fraud within the past six months. Widespread geographic impact: Fraud incidents have been reported across nearly every region, with Texas, California, South Carolina and Washington identified as top states where fraudulent activities originated. Financial strain on small businesses: About 22% of respondents reported losses exceeding $200,000 due to fraud in the past six months, while 10% have invested over $200,000 in fraud prevention measures. Chris Burroughs, TIA president and CEO, emphasized the severity of the situation: 'Our members are on the front lines of this crisis, and when fraud hits, they need to act fast.' TIA has also released a Post-Fraud Incident Checklist. Burroughs said, 'This checklist gives 3PLs and freight brokers a clear, tactical guide they can turn to in the heat of the moment — and we believe it's going to make a real difference.' The report highlights the evolution of fraud tactics, including: Identity theft and spoofing: Fraudsters are increasingly using identity theft and spoofing techniques, with 42% of respondents citing these as common fraud experiences. Compromised communications: There has been a steady increase in impersonation attempts, unauthorized contact changes and bad actors attempting to gain access to broker networks. The report also delivers a strong message to policymakers: Now is the time for coordinated action. TIA is urging the Federal Motor Carrier Safety Administration to crack down on fraudulent carriers and remove illegitimate listings from its databases. The association is also calling on Congress to pass the Household Goods Shipping Consumer Protection Act and the Combating Organized Retail Crime Act, which would provide additional tools for law enforcement to investigate and prosecute this crime. For a comprehensive understanding of the findings and recommendations, access the full TIA fraud report here. Market Check. Dallas sees more than just the FreightWaves Freight Fraud Symposium this week, as outbound tender rejections have fallen 1.23% week over week. Rejections are sitting at 4.82% in this relatively stable freight market. Volatility comes when rejections are at or above 7% for many weeks, which was seen throughout April in Dallas. With rejection rates lowering, brokers and shippers can expect stronger contract carrier compliance. Secondary carriers will see less award volumes and freight coming out of Dallas. Brokers can take their time when it comes to prioritizing coverage for lanes. Spot rates continue to leave a lot to be desired as rejections fall, meaning the rates from April will be on the high side when bidding for freight. Who's with whom. After months of escalating tensions and economic uncertainty, a welcome pause has arrived in the U.S.-China tariff standoff. The two global powers have agreed to a 90-day suspension of most tariffs that have been in place since April 2, offering a reprieve and an opportunity for further negotiations over the next three months. As part of the agreement, both nations will begin rolling back many of the reciprocal tariffs that have defined the trade dispute. U.S. tariffs on Chinese goods will fall from 145% to 30%, and China's tariffs on U.S. goods will fall back to 10%. These lower tariff rates are set to take effect Wednesday, signaling the first tangible sign of de-escalation in what has been a prolonged trade battle. Beyond tariff reductions, the deal addresses key nontariff barriers. Beijing has committed to suspending or canceling several retaliatory measures, including export restrictions and the blacklisting of dozens of U.S. companies. This is seen as a significant move to rebuild trust and open dialogue between the two economies. One of the most critical components of the new agreement centers on intellectual property rights. Article 1.1 of the agreement reaffirms both nations' commitment to respecting IP rights, while Article 1.2 mandates the fair, adequate, and effective protection and enforcement of those rights. It also guarantees equitable market access to companies whose businesses depend on robust IP protections. The agreement comes at a pivotal time. Just last month, concerns were raised as certain Chinese manufacturers began promoting luxury goods at significantly reduced prices, raising red flags about potential IP violations. This temporary trade truce may help curb those practices and ensure a more level playing field. For U.S. retailers and importers facing an average transit time of about 20 days for goods traveling from Chinese ports to the U.S. West Coast, this window allows companies to pull forward inventory or restock products that may have run low during the high-tariff period. The more you know Highway releases Freight Fraud Index revealing 400,000 sophisticated fraud attempts in Q1 2025 CEVA Logistics acquires Turkish logistics company Borusan Tedarik XPO sees minimal shipper conversion from LTL to TL Taking on Porter, Uber launches logistics service Courier XL for delivery of large goods Logistics firm buys $2M in Trump meme coins to boost US-Mexico trade The post Check Call: TIA's annual fraud report spotlights surge in incidents appeared first on FreightWaves.
Yahoo
11-04-2025
- Business
- Yahoo
Senators Reintroduce Federal Bill to Stymie Organized Retail Crime
Federal legislators are answering the industry's calls on organized retail crime prevention and punishment. Senators Chuck Grassley (R-Iowa) and Catherine Cortez Masto (D-Nev.) reintroduced the Combating Organized Retail Crime Act on Thursday, their third attempt at introducing retail crime-related legislation at the federal level. More from Sourcing Journal Taking Recycling Rules to the Next (Federal) Level NJ Governor Signs Bill Tightening Retail Crime Penalties Steering Circularity Amid Not-So-Sustainable Policy Shifts The bipartisan bill is also co-sponsored by Marsha Blackburn (R-Tenn.), Amy Klobuchar (D-Minn.), James Risch (R-Idaho), Jacky Rosen (D-Nev.), Bill Cassidy (R-La.), Martin Heinrich (D-N.M.), Ted Budd (R-N.C.), Bill Hagerty (R-Tenn.), Lindsey Graham (R-S.C.), Steve Daines (R-Mont.), Mark Kelly (D-Ariz.), Katie Britt (R-Ala.) and Ted Cruz (R-Texas). It seeks to create an Organized Retail and Supply Chain Crime Coordination Center under the Department of Homeland Security (DHS). That center would bring together local law enforcement agencies and representatives throughout the retail industry. The bill also advocates for the development of new tools meant to streamline investigating and doling out punishment to organized retail crime perpetrators, as well as to find the stolen goods and cash associated with thefts and illegal resale transactions. Cortez Masto said she has seen firsthand the negative impact organized retail crime can have on a state, and said that, this time around, Congress needs to take action on the issue. 'The rise in organized retail crime has left businesses scrambling, and it is time for Congress to pass this bipartisan legislation to help law enforcement agencies keep our communities safe,' she said in a statement. Cortez Masto isn't the only one who wants to see action taken; the bill has garnered broad support from industry organizations like the National Retail Federation (NRF), the Retail Industry Leaders Association and the American Trucking Associations, among others. David French, the NRF's executive vice president of government relations, lauded Grassley and Cortez Masto for their decision to bring the legislation back to the Senate. 'ORC is occurring across the retail enterprise—supply chains, bricks-and-mortar stores, warehouses and online—with stolen product sold for a profit, oftentimes to fund other crimes,' French said in a statement. 'The Combating Organized Retail Crime Act of 2025 will align efforts within a new Organized Retail and Supply Chain Crime Coordination Center to ensure that resources and information-sharing will be available across local, state, federal and private-sector partners to bring cases and prosecutions against organized theft groups. This legislation is an important step to help prevent ORC from infiltrating local communities across the country.' Third-party logistics giant UPS has also put its support behind the bill; Michael Kiely, the company's president of global public affairs, said the bill could help companies keep up with the myriad ways thieves are upgrading their game. 'UPS supports the Combating Organized Retail Crime Act as it provides the necessary resources and coordination to protect the movement of American goods throughout our country while safeguarding the integrity of our national supply chain from rail to road, to retail,' Kiely said in a statement. According to the federal bill, more than 30 state laws have been passed since 2022 in an effort to prevent retail crime. New Jersey was one of the latest to sign a bill upping the ante on punishments for perpetrators, and two additional states seem to be looking to join that group. In Nevada, Governor Joe Lombardo has put his support behind a sweeping Senate bill called the Safe Streets and Neighborhoods Act, which includes provisions related to retail crime. The bill would lower the threshold for a felony charge to $750, down from $1,200 and would impose stricter penalties for repeat offenses. And in Maryland, both chambers of the state legislature passed the Organized Retail Act of 2025, introduced by Delegate Karen Toles with the support of delegates Robin Grammer, Wayne Hartman and Chao Wu. Now, that bill has been sent to Maryland Governor Wes Moore's desk for final signature. If the governor signs the bill, it will take effect in October, and will allow prosecutors to merge multiple retail crime convictions, regardless of the county the crime occurred Maryland Retailers Alliance lauded the bill making it through the legislature. 'Retailers across Maryland have been sounding the alarm on organized retail crime for years,' Cailey Locklair, president of the organization, said in a statement. 'This law is a game-changer. It finally gives law enforcement the ability to treat organized retail theft as the serious crime it is, rather than a series of unrelated incidents.'
Yahoo
11-04-2025
- Business
- Yahoo
Legislation would coordinate law enforcement response to rail cargo theft
Railroads and retailers are praising a bipartisan bill in Congress that aims to reduce cargo theft. The Combating Organized Retail Crime Act (CORCA), introduced Thursday by Sen. Chuck Grassley, R-Iowa, and co-sponsored by nine Republican and five Democratic senators, would create a coordinated federal response to a rising wave of sophisticated cargo thefts, many of which target consumer goods in containers carried on double-stack trains. 'Organized criminal operations continue to evolve and escalate their targeted attacks against our nation's supply chain and retailers,' Association of American Railroads CEO Ian Jefferies said in a statement on Thursday. 'This alarming trend affects every industry – including the nation's largest railroads, which experienced a 40% spike in cargo theft last year.' The AAR says the bill would provide the framework necessary to disrupt criminal networks and safeguard supply chains. Specifically, it would enhance federal law enforcement tools and establish a centralized coordination center that would bring together federal, state and local law enforcement as well as railroad police to counter organized theft the frequency and tactics of cargo theft attempts have rapidly evolved and escalated from what once was a crime of opportunity to one that cost the industry more than $100 million last year, the AAR says. Today, rail cargo thefts are calculated, coordinated and executed by sophisticated perpetrators often with links to domestic and transnational organized crime groups. Because thieves frequently bring trains to a stop by disconnecting brake system air hoses, the thefts pose operational hazards, the AAR says. The rail industry estimates suggest that over 65,000 thefts occurred against the Class I railroads in 2024. Nike shoes have been a frequent target. 'Whether stealing mass quantities of products from retail stores or hijacking consumer goods throughout the supply chain, these gangs are wreaking havoc. And these criminal rings use the profits from retail theft to support larger illicit activities such as human trafficking, gun smuggling, narcotics, and terrorism,' said Michael Hanson, senior executive vice president, public affairs, at the Retail Industry Leaders Association. 'In order to expose and prosecute these sophisticated criminal rings, we need federal, state and local law enforcement to be coordinated, which is exactly what CORCA will do.'Related: Railroads say freight theft cost more than $100 million in 2024 The post Legislation would coordinate law enforcement response to rail cargo theft appeared first on FreightWaves.
