Just earlier today, Convoy had made it known that they were building a real-time transportation fraud detection system that can use machine learning and even carrier behavioral data while also incorporating theft solutions providers in order to I.D. potential transportation deception and crime.
In accordance to the cargo theft prevention partner, CargoNet, cargo theft has been on the up and up over about 57% year over year in Q2 2023, trailer theft has been increasing y/y by about 17% in Q2 all with a very obvious increase in double brokering schemes. There had been at least $223 million lost in 2022’s cargo loss alone.
As a response, there had been compliance executives from Convoy that have worked closely since January with various development teams and other shipping customers that can create a multistep system to fight cargo crime. All in an interview, Convoy’s very own head of performance, trust and compliance, Eric Libby, has state himself how the company would adopt brand-new tech through freight tendering and even execution process in order to snag many ways that the carrier and noncarrier scammers will commit fraud.
Utilizing risk assessment is well-performed through onboarding, while teams get flagged for their involvement with past fraud activity or even connections to fraud.
Carriers returning with high-risk are themselves well-blocked from bidding on any loads, only until the legit status can be easily proven.
When a load is assigned to any approved carrier, various anomalies can happen through transit, while the operations teams are able to be notified of the relevant activity. GPS tracking and cargo sensors are well-enabled to detect strange happenings like unloading at unusual locations and even driving away from intended lanes.
It seems better to take the proprietary methods into their own hands. Convoy for instance believes it to be important to handle their own responsibility for carriers and shipping customers also, while scams can stay sophisticated.
Taking on a carrier-centric approach can really provide a lot more true negatives and clear away the false positives.
Convoy attests that the fraud detection software is great at flagging terrible copycats before the company can even onboard them.
The company would then be able to digitally alter the name while confirming how the system had been working in a correct capacity to catch the fakers, with real-time results. Eventually, there’s a likelihood that criminals are going to meander around these protocols and figure out other ways in. That’ll be a dramatic upset.
