ITS Traffic Systems Audit Uncovers $70K Fraud Scheme
- Evan Baschko
- Jul 22
- 2 min read
Overview
A routine freight invoice audit uncovered more than $68,000 in fraudulent charges submitted by a transportation carrier. Our proprietary audit software flagged the suspicious duplicate billing activity, and our team quickly verified the findings. Working alongside the customer, we identified and resolved the issue, leading to a full refund and confirmation of deliberate fraud by the carrier.
How Our System Caught It
Our freight audit software continuously monitors invoices using advanced detection tools to identify billing anomalies. These tools include:
Intelligent pattern recognition to detect irregular billing behaviors
Duplicate invoice detection logic to identify repeat charges
Cross-referencing of shipment data across historical invoices
In this case, the system flagged a group of invoices with identical charges, dates, and shipment details—but altered order numbers. This discrepancy triggered an alert for possible duplicate freight billing, prompting further investigation.
Audit Team Investigation
After the alert was triggered, our audit team launched a detailed review to verify the findings. The investigation revealed that approximately 30 invoices had been resubmitted 3 to 5 weeks after their original submission. While the order numbers had been changed to avoid detection, all other details—shipment information, invoice dates, and amounts—were identical to the previously paid invoices. This manipulation confirmed an intentional effort to bypass standard duplicate billing safeguards.
Customer Partnership and Resolution
We worked closely with the customer to validate the flagged invoices against their internal payment records and confirmed that duplicate submissions had been paid. Together, we enforced a formal refund claim with the carrier. Following our joint investigation, the carrier admitted to intentionally altering and resubmitting the invoices, confirming deliberate billing fraud. This collaborative effort ensured full financial recovery for the customer and reinforced future invoice oversight procedures.
Key Takeaways
$68,000+ in fraudulent freight charges were identified and fully recovered.
ITS Traffic Systems’ proprietary audit software successfully flagged duplicate invoices that had been deliberately manipulated.
Human-led investigation confirmed the findings and provided evidence for resolution.
Customer collaboration ensured fast action, financial recovery, and strengthened future invoice controls.
Carrier accountability was achieved, confirming the importance of proactive freight invoice audits.
Ready to Take Control of Your Freight Spend?
Freight fraud costs businesses at least $500 million in payments annually, according to the Wall Street Journal. Our proprietary audit software is built to detect billing anomalies that other systems miss. Paired with expert human oversight, it helps uncover fraud, overbilling, and duplicate charges before they impact your bottom line. Contact us today to discover the array of services we provide to protect your operational integrity from preventable freight-related losses.
The Wall Street Journal – The Journal Podcast, “How Cyber Thieves Are Disrupting U.S. Goods”, published March 22, 2024.
Comments