Recent headlines reveal how freight fraud is no respecter of national borders.
Authorities have arrested Shenghua Wen, a Chinese national residing illegally in the U.S., on suspicion of exporting firearms, ammunition and restricted military technology to North Korea. Operating out of Long Beach, California, Wen reportedly hid the contraband in shipping containers routed through Hong Kong before reaching their final destination.
This case underscores the complex, international dimensions of freight fraud and its potential consequences. With the global supply chain as a stage, seemingly routine shipments can mask illicit activities, making vigilance and technology-driven oversight more critical than ever.How did Wen exploit shipping logistics to violate sanctions, and what lessons can the industry take away? Find those answers here.
Motive’s new AI fraud controls
Telematics platform Motive announced Thursday the release of its new AI-powered fraud controls for the Motive Card, as it aims to set new standards for how fleets combat fuel fraud.
In a 30-day trial, the system detected over $250,000 in fraudulent transactions across 1,200 incidents, showcasing its ability to stop fraud in its tracks. According to the company, fraudulent fuel charges are responsible for 19% or more of fleet expenses.
Fully integrated with Motive’s telematics platform, these controls provide fleet managers with precision in fraud detection and prevention. Features like location mismatch alerts, automated transaction declines and customizable spending limits give businesses the tools to safeguard their budgets.
Hemant Banavar, Motive’s VP of financial products, provided context to FreightWaves on how fraud can be prevented with better financial tools and by leveraging telematics data:
FREIGHTWAVES: What are the most significant trends in freight fraud today, and how have these evolved with the increased use of digital tools and telematics?
BANAVAR: One critical trend is data integration. Integrating data streams into a single system is the only way to get a comprehensive view of fleet activity, including spend. … Analyzing card transaction and vehicle data in separate systems or at separate times increases the chance that fraudulent charges are going unnoticed for longer or missed entirely.
FREIGHTWAVES: How do you see AI reshaping the fight against freight fraud in the coming years, especially as fraudulent schemes become more sophisticated?
BANAVAR: Fighting fraud comes down to speed of detection. For instance, Motive Card’s new capabilities use AI to not only detect fraudulent transactions faster but proactively alert fleet managers and decline them in advance. … Other areas fleet managers should be leveraging are alerts for Fuel Type Mismatch and Fuel Level & Spend Mismatch alerts that detect fraudulent transactions and take prompt action, such as freeze the card, or block the merchant when the fuel level or type do not match the vehicle. Also, our Category Level Spend Limits allow customers to set transaction limits by merchant type, times of day, days of week, billing cycle and transaction locations for more precise control over their spend. For example, customers can allow one-time hotel transactions for immediate driver needs, set lower limits at home improvement or grocery stores and higher limits for fuel and maintenance spend.
FREIGHTWAVES: How critical is industrywide collaboration in combating freight fraud, and what role should technology providers like Motive play in fostering this collaboration?
BANAVAR: Collaboration and partnership are key to combating fraud, particularly as telematics and fuel data collection evolves. An example of this is Motive Card being part of the Mastercard network, which provides built-in fraud protection for customers as well. The Motive Card savings partner network also plays a role in detecting fraud by integrating data within our platform. The more that fuel providers, transportation companies and fleet management partners share data, the better detection can become.
Learn more about the new tool here.
Caught quick stealing kicks
Three men were arrested last week after stealing 1,278 Nike Air Jordan sneakers worth over $311,000 from a train parked in California’s Mojave Desert.
Their plan unraveled when police tracked a GPS device hidden in the shipment, leading authorities to a U-Haul in Anaheim packed with the stolen shoes.
Prosecutors charged the suspects with felony grand theft of cargo and other crimes, with potential prison sentences of up to three years.
As District Attorney Todd Spitzer warned, “It’s not a matter of if, but when you will be caught and prosecuted.”
Read more about the case here.
Fresno trucking company manager sentenced in $1.6M fraud scheme
EX-NFL player, business partners indicted on PPP fraud charges
CargoNet warns of increased cargo theft risk during Thanksgiving holiday