Preventing, detecting, and addressing fraud in registration

(a) Definitions In this section: (1) Existing user The term existing user means a motor carrier that has access to, is registered for, or is otherwise included in the registration system. (2) Flagged user The term flagged user means a new user or existing user— (A) the activity of which is flagged as suspicious by an automated system implemented under subsection (b); (B) with respect to which a discrepancy or other suspicious matter is identified; or (C) with respect to which the Administration receives a report or other notification of— (i) failure to disclose a material fact; (ii) fraud; (iii) any activity indicative of fraud; or (iv) any other suspicious activity pertaining to the registration system. (3) New user The term new user means a motor carrier or broker that first accesses or registers, or is first included in, the registration system. (4) Person The term person has the meaning given the term in section 13102 of title 49, United States Code. (5) Registration system The term registration system means the system that the Administration uses to register motor carriers or brokers as required under section 13908 of title 49, United States Code. (b) Automated systems Not later than 1 year after the date of enactment of this Act, the Administrator shall develop and implement 1 or more automated systems to flag suspicious activity in the registration system, or by motor carriers, brokers, or other persons dealing with the Administration, such as— (1) rapid or unusual changes to motor carrier or broker information; (2) unusual registration patterns; or (3) duplicate business identifiers. (c) Review of flagged users (1) In general The Administrator shall establish a process to review each flagged user to determine whether that user engaged in fraud with respect to the registration system. (2) Requirements A review under paragraph (1) shall— (A) begin immediately on— (i) the flagging of suspicious activity by an automated system implemented under subsection (b); (ii) the identification of any discrepancy or other suspicious matter; or (iii) the receipt of a report or other notification described in subsection (a)(3)(C); and (B) include an audit of the flagged user, if appropriate or necessary to resolve the review. (3) Suspension (A) In general The Administrator may— (i) temporarily suspend the registration of any flagged user in the registration system during a review under paragraph (1); or (ii) note in any record of the Administration, including a public record published on the registration system, that a review of the applicable flagged user is ongoing. (B) Requirement If the Administrator temporarily suspends a registration of a flagged user under subparagraph (A)(i), the Administrator shall provide to the flagged user a period of not less than 30 days to respond to and address any problems identified by the Administrator for purposes of resolving the review. (4) Removal and other penalties (A) In general On a determination that a motor carrier, broker, or any other person has failed to disclose a material fact, submitted fraudulent information, or committed fraud with respect to the registration system, the Administrator shall, as the Administrator determines to be appropriate— (i) remove the person from the public view of the registration system; (ii) remove the ability of the person to access the registration system; or (iii) suspend or revoke the authority of the person to operate as a motor carrier, broker, or otherwise. (B) Requirement If the Administrator takes an action described in subparagraph (A)(iii), the Administrator shall maintain the information of the applicable person in the registration system to assist the Administrator in identifying future fraudulent activities of the person. (d) Records updates Any update to a record in the registration system under this section— (1) shall be made instantaneously, or as near instantaneously as possible, with respect to the determination relating to the update; and (2) shall not be made unless the person requesting the update verifies that the person is authorized to request the update. (e) Guidance (1) In general Not later than 90 days after the date of enactment of this Act, the Administrator shall issue to motor carriers and brokers guidance about how to protect against fraudulent activities. (2) Updates The Administrator shall update the guidance issued under paragraph (1) as appropriate to improve awareness of fraudulent activities.