18 Jun 2022

436

Big Data in Fraud Detection: How It is Used and What to Expect

Format: APA

Academic level: Master’s

Paper type: Research Paper

Words: 508

Pages: 2

Downloads: 0

Chameleon Carriers 

The replication of trucking companies and trucks under different business names has grown rampant, as the Federal Motor Carrier Safety Administration (FMCSA) program reports. A large percentage of trucking accidents involve these chameleon carriers and are usually fatal. The current vetting program adopted by the Federal government still experiences some enforcement gaps. In its implementation, there is a certain period whereby trucking companies can begin other companies with similar equipment and continue with safety violations that pose a risk to other road users. Some of the challenges that make the regulatory process difficult to follow include no system cross-checks for new registrations against the business addresses, contact information, insurance companies, and agents, which are often maintained by chameleon carriers. 

Program Description 

A program that would detect chameleon carriers promptly would need to be far-reaching in terms of data. It would be a two-pronged approach whereby it includes a risk assessment for the possibility to replicate and to use addresses and contact numbers on application forms and checking them against lists of organizations that have been phased off due to safety violations. It would need to rely upon and crosscheck data from FMCSA regarding safety records of drivers and carriers. Drivers with a history of driving unsafely, while tired, or under the influence of controlled substances would be flagged by the system. On the other hand, carriers would be investigated for their crash histories, whether the loading and cargo history follows the proper procedure, and whether the vehicle undergoes proper maintenance. 

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Additionally, information on the registration and insurance records for carriers, brokers, and freight forwarders through the Unified Registration and Transparency System. Usually, applicants will need to reach out to their agents to obtain files once they have been provided with their designated docket number. Business addresses and the contact numbers for the businesses will also be imported into the system. 

Currently, the FMSCA vetting procedure uses an algorithm and software, which includes running a risk assessment that an applicant is a chameleon carrier or is attempting to gain authority through fraudulent means. The proposed program will serve as a single-point system of information pertaining to the establishment of trucking and bus businesses. The FMSCA algorithm will utilize the information provided to conduct a more focused risk assessment than before due to the wholeness of information available. Once a business has been written off, the system will be used to run a risk assessment of replication considering a number of safety violations and organizational history, and an alert for the business address and contact numbers put out. If another company is registered using similar information, the FMSCA receives an alert. Further analysis will look at the addresses and contacts filled in registration forms that will be vetted against the list of businesses and contact addresses that have been written off by the Federal Motor Carrier Safety Administration. 

There is a need for concerted efforts to ensure the success of this program. It depends on the information available on incidents and information filled during the registration of new businesses. Majorly, the single-point information system is the driving factor of this program. It will go a long way in eradicating the loopholes in the enforcement of proper operating procedures that give leeway for setting up sister companies that continue the trend of safety violations and increase the risk for accidents. 

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StudyBounty. (2023, September 17). Big Data in Fraud Detection: How It is Used and What to Expect.
https://studybounty.com/big-data-in-fraud-detection-how-it-is-used-and-what-to-expect-research-paper

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