All forms of fraud – from double-brokering schemes to hacking attempts – are on the rise across the logistics industry. Due to a number of isolating factors, companies that tend to operate in a vacuum instead of collaborating with industry partners are the most vulnerable to these scams. As such, they also tend to be the most targeted.
Joining a network of industry professionals provides a tangible sense of security in today’s market. This is especially true in the billing and payment space.
Each member of the TriumphPay network – including brokers, shippers and carriers – is afforded an additional layer of protection against bad actors due to TriumphPay’s unique vantage point.
“It is easy for a bad guy to hide in one broker’s ecosystem. If I claim to have five trucks with FMCSA, as long as I run less than five trucks of freight for you, you’re probably not going to be any wiser about what is going on,” TriumphPay Chief Strategy Officer Garrett Wolfe said. “It is harder to hide from TriumphPay when we can see an aggregate of what’s going on.”
Unlike an individual broker, TriumphPay can see how much freight a carrier is moving throughout the industry as a whole. This allows them to identify instances where the number of power units a carrier reports does not account for the number of miles they appear to be running, uncovering common scams and protecting other industry participants.
The sheer number of payments TriumphPay handles – combined with its impressive suite of security features – also enables the company to pinpoint fraud involving carrier impersonation and bank account inconsistencies, protecting both brokers and real carriers from losing out.
“We can see where things don’t match up. With a network, we can help everybody that participates in the network avoid things that would otherwise be unavoidable,” Wolfe said.
Wolfe noted that there are three main types of carriers: Good carriers, dishonest carriers and situationally dishonest carriers. While brokers should always be fighting to keep good carriers and cut ties with dishonest carriers, it is the third group that tends to stir up unanticipated issues during times of economic stress.
When carriers are running upside down, some of them resort to fraud in order to make ends meet long enough to ride out the current market wave, Wolfe explained. While these carriers are just trying to stay afloat, their fraudulent methods have a negative ripple effect across the entire industry.
TriumphPay has recently been able to help a number of brokers flush a significant number of dishonest carriers from their systems, according to Wolfe. With plenty of capacity continuing to circulate in the market, now is the best time for brokers to batten down the hatches in preparation for potential tightening in 2024.
In addition to spotting – and stopping – fraud, TriumphPay’s deep expertise in the billing and payment space allows them to identify and mitigate common accidents like misdirected payments. This is especially helpful, as carriers may move between factoring companies frequently, making it difficult for brokers to know where to send a payment at any given time.
When brokers partner with TriumphPay, they make it easier on both themselves and their carrier partners. Through this lens, it becomes clear that companies like TriumphPay are an integral part of creating the supply chain of the future.
“We see a future where everybody – at least as it connects to billing and payments – is connected through a structured pay network,” Wolfe said.