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Leveraging network effects to mitigate risk

Upcoming white paper examines benefits and security of TriumphPay Network

(Photo: Jim Allen/FreightWaves)

From Jan. 1, 2023, through 2024, TriumphPay has prevented $113.58 million in potential losses through the capabilities of the TriumphPay Network. An upcoming white paper by FreightWaves, in partnership with TriumphPay, examines how the Network identified and prevented potential losses for Network participants.

The Network is modernizing and simplifying freight transactions. By exchanging real-time structured data, the Network reduces inefficiency, automates secure transactions, and provides personalized cash flow solutions to network participants.   Handling over $51 billion in unique brokered freight transactions annually, the Network has the data density required to verify real-time data, detail trends, and prevent losses.  This allows it to serve as the data source of truth for its broker partners. 

This article details the data demonstrating these potential losses identified and prevented due to fraud, bad data, incorrect bank account information, as well as additional friction related to misdirected payments.

“The TriumphPay Payments Network is creating new ways for participants to mitigate the risk of fraud and bad data that wasn’t possible five years ago,” says Haley Evans, SVP of Payor Strategic Initiatives. “This data is just the tip of the iceberg and a glimpse into our Network’s effect on the industry.”


Two large data sources supporting these findings are TriumphPay’s Global Factor Held Invoices and misdirected payments data.

Global Factor Held Invoices is a metric obtained by leveraging TriumphPay’s datasets that indicate who should be paid based on existing relationships between a carrier and a broker, factor or shipper. TriumphPay flags and holds an invoice if there is a discrepancy in the factor scheduled for payment and the globally accepted factor based on their Network data. More data on the Network increases data density, making the processes more efficient and accurate. This includes data on any reversals or reverse actions related to the invoices, which can include payment assignment errors or misdirected payment flags.

Without the visibility afforded by Triumph’s Network, there is a possibility that payments can be sent to the wrong place if NOAs/LORs are mismanaged or fraudulent, or if bad actors impersonate carriers and try to change their bank accounts to get paid on carrier loads.

TriumphPay notes this can include things like fraudulent or non-existent load invoices, doctored invoices, misdirected payments, carrier impersonation, and fraudulent factoring documents, to name a few. To catch fraudulent actions, one method is to validate invoices against live load data from brokerage transportation management systems. If the load data doesn’t match, the invoice is brought to the attention of the broker, who steps in to manage the exception.

In 2023 alone, TriumphPay prevented approximately 29,560 payments from going to the wrong party, totaling around $29.4 million in prevented potential losses for Network participants.  If payments do go to the wrong party, TriumphPay has a dedicated team that personally attempts to recover payments misdirected due to fraud or bad data on behalf of the brokers and factoring companies, removing an added burden.

Through TriumphPay’s integration with Highway, the company identified $26.5 million in invoices tied to a carrier that failed Highway’s Load Limit from January 1, 2023 through June 30, 2024. A Load Limit alert is triggered when a carrier’s total miles run within a 14-day time frame exceeds its asset capacity.

When a carrier fails Load Limit, a broker is alerted so they can investigate potential double-brokering of the load. TriumphPay shows the total amount due to a carrier along with the Load Limit alert but does not pause payment. This enables freight brokers to conduct their own investigation with actionable data and decide whether they want to continue their relationship with that carrier. This data can only be sourced mutually from Highway and TriumphPay as both datasets are needed to alert a Load Limit failure. This number only includes potential double payments that could have gone to the wrong carrier and would have to have been paid to the right carrier. This number doesn’t include losses related to the value of stolen loads or insurance.

The white paper will also note that TriumphPay’s overall Network continues to expand, increasing in data density, to include a total payment volume of $26.8 billion annualized for 2024. For freight broker transactions, that number is even larger with the Network handling $51.3 billion in unique brokered freight transactions. As of Q2 brokered freight Network engagement was just under 47% as well. 

Network effects are creating added value and improved visibility that benefit all entities within the Network.The added visibility is creating an additional advantage in combating freight fraud. To learn more about how the Network has prevented nearly $114 million in losses for TriumphPay customers, click here.

Thomas Wasson

Based in Chattanooga TN, Thomas is an Enterprise Trucking Carrier Expert at FreightWaves with a focus on news commentary, analysis and trucking insights. Before that, he worked at a digital trucking startup aifleet, Arrive Logistics as an Account Executive, and 5 years at U.S. Xpress Enterprises Inc. with an emphasis on fleet management, load planning, freight analysis, and truckload network design. He graduated from the University of Tennessee Chattanooga with a MBA in 2020 and a Bachelors of Political Science from the University of Tennessee Knoxville in 2013.