Transfix Releases First-of-its-Kind Shipment Verification Feature to Combat Freight Fraud
– Now, carriers who book with Transfix can instantly authenticate loads and identify fraudulent rate confirmations –
Transfix, Inc. announced the launch of a new security enhancement designed to verify load authenticity and provide the shipping community with greater ability to prevent the carrier fraud that has been prevalent in the industry.
“As the frequency and complexity of freight fraud continue to escalate, so does our work to combat it,” said Jonathan Salama, Chief Executive Officer and Co-founder of Transfix. “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.”
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. Fraudulent freight activity can lead to delayed deliveries, lost revenue for both shippers and carriers, and supply chain inefficiency.
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One security weakness that has troubled the sector is fraudulent actors impersonating legitimate freight brokers and shippers. These fraudsters then contract carriers to deliver shipments but never pay them, further damaging the carrier’s bottom line in an already challenging freight market. To combat this, Transfix has added 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.
If a carrier receives an unauthorized rate confirmation from Transfix, then the rate confirmation will either not have a QR code, will have a QR code that does not scan, will generate inaccurate shipping details, or will direct the user to a landing page not containing “apps.transfix.io”.
This new feature is one of a number of security enhancements Transfix has initiated which have the benefit of fighting fraud. Most recently, the company partnered with Highway, a carrier identification solution designed to reduce fraud and supercharge digital bookings. Highway improves efficiency by replacing the standard practice of vetting a carrier through multiple sites.
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