Combatting Fraud with Transfix’s Intelligent Freight Platform

At Transfix, we are driven by our mission to create the most efficient freight platform in our industry. Over the past 18 months fraudsters have repeatedly targeted the freight industry with an unprecedented level of sophistication in their approach. As a result, an air of distrust and suspicion has been cast onto our industry, despite the vast majority of players being honest and hard-working trucking companies. To that end, Transfix has released a number of features aimed at reducing the risk of freight fraud, and is continuing work on other soon-to-come features to lead the industry toward a more risk-resilient future. In this post, we’ll take a closer look at our current end-to-end features that help keep our transportation partners and customers’ freight safe. 

Onboarding Experience

1. The Power of the Carrier Identity Engine
   Transfix, in collaboration with Highway, recently integrated the Carrier Identity Engine into the Transfix Carrier App. The Carrier Identity Engine verifies carrier credentials, equipment details, and insurance coverage. This data integration supports our vetting and evaluation of carriers admitted into our network and helps confirm their legitimacy and qualifications against our criteria. By partnering with Highway, we enhance our access to and understanding of carrier data to support our focus on protecting shipper freight the best we can, and reducing the risks of carrier impersonation before entering the Transfix marketplace.
2. An Industry-Leading Assessment Process
   When carriers express interest in joining the Transfix network, we immediately initiate our rules engine assessment process. The process reviews our records and external data to check that carriers meet mandated requirements and helps us limit and rectify erroneous rejections. Unfortunately, due to the increasing sophistication of fraudsters’ methods, there is no foolproof method to prevent fraud. But, armed with our dynamic rules engine, Transfix can add/adjust levers as new threats are revealed in the market, and as law enforcement uncovers new strategies employed by fraudsters.
   The rules engine doesn’t stop at onboarding; it executes periodic audits of our carriers and raises flags for our team to resolve. Overall, our rules engine helps us grow our network and enhance capacity quickly while remaining cautious towards potential bad actors. Outside of the automated process, our compliance team works diligently to keep our carrier network running smoothly, including resolving anomalies flagged by the rules engine.

Shipment Execution

1. Pre-Booking Measures
   Before offering a shipment to a carrier partner, Transfix gathers several data points pertaining to the carrier entity, driver, and equipment involved. The Carrier Identity Engine then audits that data to confirm their details and identify and resolve any anomalies with the carrier. Transfix also works with customers to understand their unique needs and identify areas where extra precautions may be advisable to keep their freight safe. For example, our systems can flag high-risk loads based on a myriad of factors (shipper, commodity, location, historical data, etc.) and assign a well-suited, trusted carrier partner to cover a shipment.
2. QR Code Verification for Authenticity
   To further enhance transparency and verification, Transfix launched an industry-first QR code feature on rate confirmation documents. After the shipment details are collected, a carrier dispatcher will receive a rate-confirmation document. Each load’s rate confirmation document is accompanied by a unique QR code that, when scanned, can verify the load's authenticity as a true Transfix assignment. This feature safeguards against potential misunderstandings and fraudsters impersonating Transfix, helping carriers.
3. Tracking with Real-Time Updates
   Beyond pre-booking measures, the Transfix team stays involved with shipments every step of the way. The Transfix Carrier Mobile App provides drivers a free and easy way to track their loads and provide required status updates throughout a shipment’s progress, keeping Transfix informed. When enabled, this location data is collected to track service, shipment progress, and if users are tracking/not tracking. In cases where a driver misses a status update, our system has measures in place to bring their location data back online.
   Location data is also used in geo-fencing, automating our knowledge of the carriers’ arrival at facilities. These measures keep Transfix alert and help to resolve tracking issues. Shippers can also access this live tracking data through the Transfix Shipper App.
4. Proof-of-Delivery
   Proof-of-Delivery (POD) documentation is prompted from the user upon drop-off. The Transfix Carrier Mobile App has enabled simplified POD submission capabilities in-app through the user’s smartphone camera. Carrier App users on both our mobile and web applications will also find a to-do list upon log-in calling out any outstanding documentation requirements, among other tasks. This way PODs can reach shippers securely via the Transfix platform.

Your Partners in Security

We are committed to the safety and security of our shippers’ logistics networks. All of these measures in tandem work to help prevent fraudsters from entering or impersonating our marketplace, for the benefit of both carriers and shippers. Transfix is committed to the safety of our shippers’ freight, and plans to continue to release features to help counter freight fraud. Learn more about our recent fraud prevention releases here.