“Fraud is an issue that will never get solved unless we all come together as an industry,” said Jonathan Salama, Transfix CEO and co-founder.
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Digital freight brokerage Transfix has launched Transfix Shield, a suite of fraud-prevention tools for shippers, carriers, and brokers, to address a growing problem of cargo theft achieved through deception and bring together the industry in the fight against fraudsters posing as legitimate brokers.
The Transportation Intermediaries Association has said fraud has become a $800 million problem.
At launch, Transfix Shield includes RateCon Shield and Facility Shield, now broadly available to all freight brokerages and shippers. The tools are designed to help users protect their business, as well as those of their carrier partners, and ultimately the consumer, from the impacts of freight fraud.
“Fraud is an issue that will never get solved unless we all come together as an industry,” said Jonathan Salama, Transfix CEO and co-founder. “While this industry has long propagated competition amongst brokers, it’s time we show a united front against fraudulent actors to combat their increasing attacks on freight.”
Fighting Broker Fraud
The RateCon Shield (patent-pending) pilot was launched last summer for Transfix loads in an effort to combat the growing issue of bad actors impersonating legitimate freight brokers. These fraudsters pose as a legitimate broker, assuming that broker’s identity, and offer loads to carriers. After the carrier accepts and delivers the load, they contact the unknowing legitimate broker for payment, but the fraudster has disappeared and the carrier goes unpaid.
In an already challenging freight market, these fraudulent attacks can cripple a carrier’s business.
To combat this, RateCon Shield automates the addition of a unique QR code to rate confirmation documents, allowing carriers to validate the authenticity of loads and the brokers offering them, adding a layer of security to a brokerage’s operation and the carriers’ business. After observing noteworthy interest and engagement by its partners, Transfix moved to make this proprietary solution available to all brokerages in an effort to combat fraudulent actors attacking and impersonating legitimate intermediaries.
Salama said Transfix has further partnerships in development with key players and leaders in the industry and plans to welcome many more into its network.
The RateCon Shield pilot was launched last summer to combat the growing problem of bad actors impersonating legitimate freight brokers.
Photo: Transfix
Facility Tool in Testing for Shippers
Facility Shield, which is in beta testing and soon to be available to shippers, provides fraud prevention capabilities at the facility level. The tool is designed to help shippers protect their facility and associated loads through proprietary validation systems and processes that give shippers a new layer of security to verify carriers before they enter a facility, helping to mitigate theft.
RateCon Shield and Facility Shield can integrate via API connection, are designed for a flexible and fast onboarding experience, and do not require users to download any additional applications.
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