Rob hovered his thumb over the ‘transfer funds’ button, his hand trembling. With one tap, $75,000 would leave his bank account. In return, he would receive a 6-digit number with no official record of authority.
He tapped the button. His crime ring would last a few more months.
Across social media, thousands of MC numbers are listed every day. At a median price of $24,000, dozens of these transactions are completed. The FMCSA will never record 95% of those transactions.
The illicit transacting of MC numbers is fueling one of trucking’s most dire crises: The rise of chameleon carriers and organized crime rings. In plain sight, criminals are selling the aliases that will rob carriers of millions of dollars in annual losses.
This is the underground world of selling MC numbers.
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Why Sell an MC Number?
Rob is a cybercrime expert. In terms of phishing, he’s hooked some of the industry’s biggest names. But Rob has a problem.
The FMCSA meticulously monitors suspicious behavior tied to USDOT and MC numbers. After a few jobs gone bad, his MC number is starting to look shady. No one will give him business.
He needs a fresh start with a new name. He can’t risk going directly to the FMCSA. So, he goes to Facebook.
As he scans the dozens of listings, one catches his eye: an MC number for $75,000. The price intrigues him. He messages the seller.
The seller insists that the MC Number has considerable ‘trust equity’, having a clean, established history with the largest brokers in the game. The seller goes on to show that the MC number also provides access to several credible load boards and platforms, such as Amazon Relay. For Rob, these are places of fertile ground for his work.
Rob sends the money. No legal transfer is issued; only the mask that the MC number allows.
Rob’s story is not unique. Fraudsters are constantly buying and selling MC numbers to keep their names clean, allowing them to continue their work of swindling.
How Criminals Use MC Numbers
The underground exchange of MC numbers is something of a black eye for the freight industry, providing an easy breeding ground for chameleon carriers.
Chameleon carriers get their moniker from their difficulty of being spotted. As they steal, divert, and manipulate the flow of freight, they simply adopt a new MC number whenever suspicion arises, effectively resetting their reputation. Like chameleons, their appearance is constantly changing.
To pull off this simple scheme, chameleon carriers simply scan Facebook or Telegram whenever they need a new identity. With more than 99% of MC listing numbers traced back to four email addresses on Telegram, these chameleon carriers come to know their vendor well.
The aftermath of this underground trade is staggering. For regular carriers, a minimum of $500 million in losses is attributable to chameleon carriers, but the actual damages are likely far greater.
How Factoring Insulates Carriers from Freight Fraud
In an industry where carriers can hide thousands of safety violations with an overnight reset, it’s becoming difficult to know who you can trust with your business.
Not only does the England Carrier Services factoring program pay you for your loads much faster, but it also offers a rigorous vetting process and a seasoned legal team, making it a vital tool for fraud protection.
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Like a toxin in a cave, the poison of the underground world of selling MC numbers is slowly making its way to the surface, affecting carriers on the front lines of trucking. By utilizing factoring services, you can insulate your business from the ever-growing dangers of modern freight fraud.