Tackling cargo fraud with Trustd
A new business ID and credentials app, Trustd, has launched, which is designed to help minimise the risk of cargo fraud.
Before digitalisation and the availability of global transportation, there were only a few degrees of separation between the shipper of the goods and the carrier or driver taking them to their destination, says Trustd.
“As the industry grew, businesses began to network, often subcontracting work to known associates until there could be several more degrees of separation between parties,” said the company.
“But that sense of accountability that comes from being a known entity was still present, if slightly diluted.
“Yet in 2023, transport and logistics have adapted to function successfully within the platform economy. This is an economic landscape made up of digital marketplaces, where different service providers allow organisations to interact and transact with one another on a borderless scale; it’s hyper-efficient, but almost completely anonymous.”
From freight forwarders and 3PLs to carriers and drivers, a single shipment might be in the custody of seven or eight different organisations before it reaches its delivery address, points out Trustd – and that’s before one considers the jurisdictions it passes through, or modes of transport involved.
“While this level of fragmentation presents huge business opportunities, it also means that many operators don’t actually know who they’re working with, who’s driving their freight or visiting their site, or even who’s paying their invoices,” the firm continued.
“Without clear visibility of the organisations in their supply chain, many businesses are left vulnerable to increasingly sophisticated forms of cargo fraud — as evidenced by the skyrocketing rates of double brokering the US is currently experiencing.”
Trustd is a specialist ID and credentials solution purpose-built for the freight community, which allows drivers and carriers to become verified by creating a shareable profile that contains all the relevant details, like driving licence, operator licence and insurance certificates.
The platform cross-references these data points with a range of external data sources, including Companies House and the DVLA, to confirm credentials. It also uses elements of biometric ID technology — like a liveness check — to accurately match the individual with the business entity, and verify their identity.
As a profile holder, drivers and carriers have verified proof of their identity and business status, which they can easily share with their network, along with their compliance documentation. This allows shippers and 3PLs to build out a network of trusted suppliers, says Trustd, while its ongoing monitoring feature gives them complete visibility of any upcoming changes in compliance status.
“The data set that informs these products is self-maintained, so it’s always up to date, and it’s machine verified wherever possible, so it’s intrinsically reliable,” added the company.
“And when this foundational data set is applied to real-world transactions, trust that’s been weakened by the sheer volume of moving parts within the industry can be restored…
“By harnessing the power of electronic ID verification technology, Trustd provides users with total transparency — empowering shippers and 3PLs to manageably maintain compliant working relationships with a far greater number of drivers and carriers than conventional communications allow.
“It also takes this transparency one step further by providing it throughout the journey of a shipment, with its check-in and secure collect and delivery solutions. By leveraging data like biometrics and QR codes, these products ensure that only authorised individuals are granted access to consignment locations and the loads themselves.
“Trustd delivers unprecedented levels of visibility to every entity in the supply chain, enabling reputable drivers and carriers to set themselves apart from bad actors. The technology makes the shipment and processing of a load more efficient, and widely adopted, will effectively close the loopholes that cargo criminals like fraudulent carriers can currently exploit.
“Ultimately, the platform takes the best-in-class practices that are already being used to great success in the financial services industry, and applies them to businesses and individual verification in transport and logistics.”
