Firewall Breached

What Is Shipping Fraud?

A massive misconception is that shipping fraud is caused by carriers. This cannot be further from the truth. Nearly 100% of shipping fraud originates from the unauthorized use of company shipping account numbers. Unfortunately, it is way too easy to uncover a company's account number by simply looking at the shipping label.
Often we see previous employees or other previously authorized users continue to use shipping accounts not owned by them for their own personal use. At PMAC, we have advanced solutions to detect and prevent shipping fraud, ensuring your company’s accounts remain secure and financially protected. Contact PMAC today to implement robust safeguards on all your carrier accounts.

Why It’s a Real Problem for Shippers

Shipping fraud is pervasive and costly. Industry research shows a significant percentage of shippers experience some form of fraud each year, leading to millions in unnecessary losses.
Common forms of shipping fraud include:

  • High Risk
    Account numbers are easy to decipher from shipping labels and tracking numbers.

  • Employee Misuse
    Current and ex-employees utilizing company account numbers for their own personal activity.

  • Operational drain
    Time and personnel are diverted to dispute resolution, auditing, and reconciliation.

PMAC implements proactive, fail-safe strategies to detect and prevent shipping fraud weekly. Our approach protects your bottom line, enhances supply chain transparency, and maintains trust with carriers.
Fraud doesn’t just impact your bottom line — it obscures true supply chain performance and undermines trust with carriers.
Problem for shippers

How PMAC’s Package Fraud Detection
System Identifies Shipping Fraud

Our Package Fraud Detection solution combines advanced analytics, real-time tracking,
and machine intelligence to catch fraudulent behavior before it costs you money.

Shipment Monitoring

Real-Time Shipment Monitoring

Continuous shipment tracking monitors every movement and delivery event, comparing them to expected behavior patterns. Deviations are flagged immediately, allowing your team to address issues before they escalate.
AI-Driven anomaly detection

AI-Driven Anomaly Detection

Machine learning models identify unusual patterns in delivery, billing, or routing that might signal fraud. This ensures that fraudulent activity is identified faster and more accurately than manual audits alone.
Pattern scoring & alerts

Pattern Scoring & Alerts

All shipping activities are scored using historical trends and risk indicators. High-risk patterns trigger automated alerts, enabling your team to investigate suspicious activity efficiently.
Audit ready dashborads

Audit-Ready Dashboards

Visual insights and exportable reports equip your team to quickly validate or dispute suspect activity.

This multi-layered approach covers everything from duplicate orders to sophisticated invoice
manipulation schemes, ensuring end-to-end protection for your shipping accounts.

Key Benefits of PMAC

Key Benefits of PMAC’s Fraud Detection System

Implementing our fraud detection system delivers measurable advantages:
  • Stronger Carrier Relationships
    Transparent analytics and accurate dispute resolution strengthen trust with logistics partners, making carrier interactions smoother and more collaborative.
  • Reduced Financial Losses
    Detect and stop fraudulent claims before payments are made, and recover overcharges efficiently, protecting your profits.
  • Peace of Mind

    Automated oversight eliminates manual guesswork, allowing your team to focus on core logistics and operations.

  • Data-Driven Visibility
    Actionable insights reveal spending trends, optimize shipping costs, and strengthen processes to prevent future fraud.
Our clients gain not only cost control - they gain confidence in every shipment.

Technology / Process

Our fraud engine operates through a structured, systematic workflow:

Action & Feedback Loop

Confirmed fraud patterns continuously refine our AI models, improving detection accuracy over time and ensuring smarter, faster identification of suspicious activity.

Data Ingestion

We collect and consolidate shipment tracking data, invoices, carrier logs, and order metadata into a centralized platform for real-time analysis.

Investigation Toolkit

Built-in workflows enable your team to assess, validate, escalate, or dispute flagged cases efficiently, reducing manual effort and accelerating resolution.

Normalization & Enrichment

Rebate terms are digitized and structured into measurable rules, eliminating manual interpretation errors.

Alert Generation

High-risk shipments trigger real-time alerts with contextual details, enabling immediate investigation and corrective action.

Behavioral Modeling

AI algorithms establish expected delivery patterns and financial benchmarks, providing a baseline for detecting deviations and potential fraud.

Anomaly Scoring

Each shipment event, route, or charge is scored against predictive models and known fraud signatures, highlighting high-risk activity for immediate attention.

Technology/
Process

Example Case Studies / Results

Our fraud engine operates through a structured, systematic workflow:
#1

Case Study

Duplicate Shipment Detection

Client:

Large e-commerce retailer

Problem:

Frequent duplicate deliveries on high-volume SKUs

Result:

Our system flagged repeat patterns, recovering 12% of disputed charges and reducing repeat delivery claims by 40% within 3 months.

#2

Case Study

Invoice Manipulation Prevention

Client:

National distributor

Problem:

Carrier invoices showed unexplained rate changes

Result:

AI-driven pattern scoring identified inconsistent billing across routes, recovering eight figures in unauthorized charges and improving future billing compliance.

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Start Protecting Your Shipments from Fraud Today

Shipping fraud doesn’t have to drain your profits. PMAC’s Package Fraud Detection solution provides transparency, automation, and intelligence to protect your bottom line and streamline operations.
Call (631) 847-0596 Now
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