Latest news with #freightfraud
Associated Press
07-07-2025
- Business
- Associated Press
Descartes MacroPoint™ FraudGuard 2.0 Provides Transportation Industry with Next-Generation Solution for Freight Fraud Defense
ATLANTA, July 07, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced the release of Descartes MacroPoint™ FraudGuard 2.0, the latest advancement in freight fraud technology designed to help shippers, freight brokers, and third-party logistics providers (3PL) safeguard their business against increasingly sophisticated fraud and cargo theft schemes. With new capabilities for pre-tender, pre-pickup and in-transit shipments, companies can maintain a high-performing, compliant carrier network, enhance the reliability of critical decision-making insights, and better detect and mitigate potential identity fraud or double brokering to avoid insurance, liability, and reputational risks. 'The new FraudGuard release has fundamentally elevated our operational confidence,' said Tore Giannone, Director of Operations, Circle Logistics. 'Its automated alerts and comprehensive insights have not only reduced the manual workload but also enabled us to proactively identify and prevent a range of fraud attempts. By making smarter, earlier decisions at the carrier level, we've strengthened network reliability and improved tracking compliance—ultimately safeguarding our customers' cargo with greater precision.' Descartes MacroPoint FraudGuard 2.0 significantly expands freight visibility and protection through powerful historical and real-time Descartes MacroPoint visibility data, automated in-transit monitoring, and real-time risk alerting. Companies can confidently evaluate carrier and driver legitimacy without delaying load coverage through detailed search insights from Descartes MacroPoint's unmatched database of freight tracking history. In addition, the solution automatically monitors shipments for risk signals across 16 critical in-transit data alerts to proactively notify users of potential fraud, double brokering, and suspicious activity, which provides greater protection for customers. 'Descartes MacroPoint FraudGuard 2.0 brings next-level freight visibility and control to our customers with new alerts and lookup tools that help companies better protect their shipments, reputation and bottom line,' said Robert Derin, Director of Product at Descartes. ' By improving compliance through enhanced security measures, the solution helps shippers, brokers, and 3PLs strengthen their service differentiation, dramatically reduce fraud-related losses and lessen the financial impact of resolving incidents.' Key Descartes MacroPoint FraudGuard 2.0 features include: Learn more about Descartes MacroPoint FraudGuard 2.0 and Descartes' Transportation Management solutions. About Descartes Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at and connect with us on LinkedIn and Twitter. Global Media Contact Cara Strohack Tel: 226-750-8050 [email protected] Cautionary Statement Regarding Forward-Looking Statements This release contains forward-looking information within the meaning of applicable securities laws ('forward-looking statements') that relate to Descartes' transportation management solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, 'Certain Factors That May Affect Future Results' in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes' most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Yahoo
27-06-2025
- Business
- Yahoo
DOT Secretary plans to use AI to solve carrier identity
The Freight Fraud Crisis The trucking industry is grappling with a surge in freight fraud, leaving carriers, brokers, and shippers vulnerable to sophisticated scams like identity theft and unauthorized double brokering. These schemes disrupt supply chains, undermine trust, and cause significant financial and logistical challenges. The root cause is the Federal Motor Carrier Safety Administration's (FMCSA) inadequate management of carrier identities, which allows criminals to exploit outdated systems and weak oversight. How Criminals Exploit Basic Vulnerabilities The FMCSA's outdated data systems and lax verification processes make fraud easy. Criminals register fraudulent carrier identities using stolen credentials or fake documents to obtain Motor Carrier (MC) numbers with little scrutiny. Without real-time monitoring, they manipulate records or reactivate dormant registrations undetected, enabling double brokering—where fraudsters pose as legitimate carriers, secure loads, and subcontract them without authorization, leaving others unpaid. Identity theft is widespread, with criminals hijacking carriers' profiles to divert payments or secure contracts, damaging reputations. The lack of biometric or multi-factor authentication allows repeat offenders to re-enter under new aliases. Many of these issues stem from basic oversights. The FMCSA doesn't require robust identity checks, like verifying driver's or business licenses, and lacks cybersecurity measures like two-factor authentication. Automated alerts for suspicious activities, such as multiple registrations from one IP address, are missing, and routine database audits to flag duplicate or dormant MC numbers are inconsistent. These are standard practices in banking and e-commerce, yet the FMCSA's reliance on manual processes and outdated software leaves loopholes for criminals. Organized crime syndicates exploit these gaps, costing the industry millions annually. Private companies like Highway, RMIS, and Carrier Assure have stepped in with innovative solutions. Highway offers real-time carrier monitoring and fraud detection tools, while RMIS provides onboarding and risk assessment to verify carrier legitimacy. Carrier Assure uses advanced analytics to score carrier reliability and flag suspicious activity. These platforms help brokers avoid bad actors, but their impact is limited without systemic change. To make a real difference, the DOT must lead, working with law enforcement to prosecute fraudsters and enforce stricter regulations, ensuring a coordinated effort to protect the industry. A Robust Response from the DOT Under Secretary Sean Duffy, the DOT is tackling freight fraud with a forward-thinking strategy. Artificial intelligence (AI) is central, detecting fraud patterns that traditional methods miss. Speaking on FreightWaves' What The Truck?!? podcast on June 27, 2025, Duffy said, 'We have great AI tools that will bring us light years ahead in rooting out fraud patterns.' These tools aim to strengthen FMCSA system security and data integrity, preventing fraud before it harms legitimate businesses. The DOT is also partnering with law enforcement to identify and prosecute bad actors, fostering accountability across the supply chain and creating a secure, competitive environment for truckers. Learning from Past Shortcomings Historically, insufficient oversight and inactive load boards have worsened fraud vulnerabilities. Private-sector platforms have tried to fill these gaps, but their fragmented efforts lack cohesion. Private tech solutions have had to compensate for the DOT's poor management of carrier identity. Duffy's initiatives mark a shift toward unified oversight, combining technology and accountability to address longstanding issues. Private solutions aren't going away, but they will build upon DOT's efforts. Building a Future-Ready Framework The DOT's strategy anticipates future threats by integrating AI, strengthening data security, and collaborating with law enforcement to set new fraud prevention standards. Duffy emphasized, 'Rules must eliminate fraud and double brokering while treating truckers fairly.' This approach creates a resilient framework adaptable to evolving fraud tactics, ensuring long-term protection. A Path to a Secure Trucking Industry The DOT's plan—leveraging AI, law enforcement partnerships, and regulatory reform—offers a promising path to secure the trucking industry. By addressing FMCSA vulnerabilities and prioritizing carrier identity management, the DOT aims to build a fair, transparent, and secure marketplace, safeguarding freight operations and supporting legitimate carriers, brokers, and shippers. The post DOT Secretary plans to use AI to solve carrier identity appeared first on FreightWaves.
Yahoo
19-06-2025
- Business
- Yahoo
Overhaul's FraudWatch: a new paradigm in freight fraud prevention
Freight fraud has emerged as one of the most rapidly growing and financially devastating risks in today's global supply chain landscape. With global cargo theft losses exceeding $80 billion in 2023 and the average cost of a successful fictitious pickup surging to $365,000 per incident in Q1 2024, the industry has been desperately seeking more effective solutions. Enter Overhaul's FraudWatch, a winner of the 2025 FreightWaves Fraud Fighter Awards, which has revolutionized the approach to freight security. Unlike traditional tools that focus on recovery after theft has occurred, FraudWatch breaks new ground by proactively identifying and stopping fraud attempts before they can impact the bottom line. This shift from reactive to preventive risk management marks a breakthrough in how the industry combats increasingly sophisticated cargo theft schemes. 'It is a team sport; you need everyone involved in your supply chain to be actively involved in combating fraud for your efforts to be successful,' Overhaul wrote in its application materials. 'Knowing who is working to keep your supply chain secure is only possible with granular visibility. You can't make assumptions or hope for the best: it's about using real data and real visibility to stop fraud in its tracks.' At its core, FraudWatch offers real-time, pre-shipment risk detection powered by Overhaul's AI-driven Intelligence platform. The solution verifies carrier and driver identities, flags suspicious behavior, and prevents loads from being assigned to bad actors before theft can analyzes data across Overhaul's global shipment footprint and employs advanced machine learning and natural language processing to detect red flags—whether it's mismatched booking data, suspicious communications, or a newly registered MC number with no verifiable history. It then delivers real-time risk scores and fraud alerts directly into existing transportation workflows, making prevention both scalable and actionable. What truly sets FraudWatch apart is its two-step verification process. It is 'the only carrier verification and fraud detection solution that delivers two-step verification to eliminate threat of double brokering – carrier/driver verification at point of carrier assignment and again at point of shipment pick up.' This comprehensive approach provides an unprecedented level of security in an increasingly high-risk environment. The impact of FraudWatch has been significant. The solution is market-tested on thousands of shipments, saving customers over $100 million in potential losses during its early adoption phase in 2024 alone. In fact, 14% of all U.S. motor carriers that FraudWatch screens at pickup are flagged as high-risk—7% identified as potential bad actors and 12% found to be operating without proper FMCSA authority. These findings illustrate how widespread fraud risks remain, even among seemingly vetted carriers. FraudWatch's secondary screening at pickup—a key differentiator—adds an extra layer of protection, preventing significant losses that would otherwise go undetected. In early deployment, 8% of FraudWatch-enabled shipments encountered a high-risk carrier, driver, or double-brokering attempt—risks that were proactively stopped before the load was solution integrates with Overhaul's broader security infrastructure, enabling escalation to internal intelligence and recovery experts for further investigation and coordinated law enforcement engagement when a fraud pattern is detected. This full-spectrum approach—monitor, detect, verify, and escalate—gives logistics providers a level of control and confidence previously unattainable in the freight industry. 'The only way fraud will stop/decrease is if the criminals start getting caught in the act,' Overhaul emphasized, highlighting the importance of their coordinated approach to fraud prevention. Overhaul's commitment to freight security extends beyond technology. In a notable case, their watch officers noticed suspicious markings on a tractor that had arrived to pick up a customer's freight. Upon investigation, they discovered that 'the carrier whose name was on the side of the tractor was not the actual carrier, and that the carrier listed on the side of the tractor did not operate in the same state as the origin location.' As a result, they turned the driver away and cancelled several loads that were scheduled to be picked up by the same fraudulent carrier. 'Had they left the origin, our client would never have seen those 6 truckloads again,' Overhaul explained. In another significant collaboration, Overhaul supported the California Highway Patrol and the San Bernardino Police Department in an investigation that led to major arrests in auto theft and drug trafficking. The team worked closely with BNSF security leads and law enforcement agencies to recover products for multiple customers, demonstrating their capability to not only prevent fraud but also assist in the recovery of stolen goods when necessary. Looking ahead, Overhaul cautions that 'the future of fraud will be technology enabled.' They have observed technology driving fraud into new methods including document forgery, and as technology, including AI, advances, they anticipate it being used more extensively in fraudulent activities. 'One likely development on the near horizon is the use of AI bots to cast a wider net when phishing or AI avatars to be used in video verification calls,' they warn. For companies looking to protect themselves against these evolving threats, Overhaul recommends getting 'plugged in to the industry, attend events, work with organizations like Overhaul that can seamlessly connect you with Law Enforcement and teach you how to protect yourself.' They also emphasize the importance of industry collaboration: 'Work together, share intelligence and best practices, be transparent.' FraudWatch's launch represents not just a technological milestone but a strategic response to an urgent industry challenge. By combining AI, real-time data, and deep industry expertise, FraudWatch has set a new standard for proactive, intelligent risk management in the supply chain. In an era where digital impersonation, phishing scams, and fictitious pickups are becoming more common—and more costly—Overhaul's innovative solution provides the industry with a powerful weapon in the fight against freight post Overhaul's FraudWatch: a new paradigm in freight fraud prevention appeared first on FreightWaves. Sign in to access your portfolio
