The digital freight matching (DFM) startup Transfix today released a security enhancement that uses quick response (QR) barcodes to verify load authenticity with smartphones, providing the shipping community with greater ability to prevent a recent jump in instances of carrier fraud.
While fraud has always affected the trucking industry, research indicates a significant increase over the past years, with CargoNet recently reporting a 57% increase in Q2 2023 fraud events as compared to Q2 2022, New York-based Transfix said. Such fraudulent freight activity can lead to delayed deliveries, lost revenue for both shippers and carriers, and supply chain inefficiency.
Better defenses are needed because fraudulent actors have been deploying more sophisticated methods in recent years, Transfix says. They increasingly attempt to hijack truckload shipments by hacking carrier emails and load board credentials and other electronic processes. They have also developed means to duplicate proofs of delivery (POD) in a manner that a trained eye would not likely catch. In another approach, they impersonate legitimate freight brokers and shippers and contract carriers to deliver shipments but never pay them.
Transfix’ new approach can block such scams by adding a unique QR code to its rate confirmations, making it easy to confirm that the shipment is a confirmed Transfix load. When scanned by a smartphone camera, the QR code will take drivers to “apps.transfix.io” – a dedicated landing page where load authenticity and shipment details will be validated.
“As the frequency and complexity of freight fraud continue to escalate, so does our work to combat it,” Jonathan Salama, CEO and Co-founder of Transfix, said in a release. “The industry must come together to address the security weaknesses that are impacting carriers and shippers alike, and our hope is that this initiative will generate further action across the sector.”
Gartner, Inc.