Logistics, Transportation & E-commerce

AI-Based Fraud Detection in Logistics

A global logistics enterprise used AI-based fraud detection to identify suspicious orders, shipment patterns, and delivery activity while reducing fraud risk.

softreetechnology.com/case-studies
ai
Improved
Fraud detection
Reduced
Fraudulent shipments
Faster
Fraud investigation

Client Profile

A global enterprise in the IT services sector, operating across Multiple Regions and managing a complex IT environment. The client partnered with Softree Technology to leverage AI-Based Fraud Detection in Logistics for improved IT service management and operational efficiency.

Use Cases
AI Fraud Detection, Risk Management, Intelligent Automation, Quality Engineering
Industry
Logistics, Transportation & E-commerce
Project Type
AI-Powered Fraud Detection & Risk Monitoring
Scale of Operation
Global logistics and supply chain enterprise operating across multiple regions with high volumes of orders and shipments.
End Users
Customers, logistics operators, delivery partners, and fraud-investigation teams
Service Provided
AI/ML TestingFraud Detection TestingModel ValidationFunctional TestingAPI TestingPerformance TestingRegression Testing
The Client Challenge

Business Process Challenges

A global logistics and supply chain company operating across multiple regions manages a high volume of orders, shipments, and delivery transactions every day. As digital transactions increased, the organization needed a data-driven approach to identify fraudulent orders, suspicious shipment behavior, and irregular delivery activity while providing business teams with clear, real-time visibility into fraud trends.

The existing fraud-detection process relied heavily on predefined rules, disconnected data sources, and manual investigation. Fraud-related information was difficult to analyze across large transaction volumes, making it challenging to identify emerging patterns, monitor risk indicators, and distinguish genuine activity from potentially fraudulent behavior.

Key challenges included:

  1. Limited visibility into fraud trends across orders and shipments
  2. Fake or inconsistent delivery confirmations
  3. Duplicate or suspicious orders
  4. Unusual shipment routes and transaction patterns
  5. High-value orders requiring additional risk analysis
  6. Large volumes of transaction data requiring manual investigation
  7. False positives affecting legitimate customers
  8. Fraud indicators distributed across multiple transactions and data sources
  9. Difficulty identifying previously unseen fraud patterns
  10. Lack of centralized Power BI dashboards for fraud monitoring and risk analytics
  11. Limited real-time visibility into fraud KPIs, risk scores, and investigation trends
  12. Difficulty providing actionable insights to operations and business teams
Our Approach

Our Strategic Approach

  1. Implemented an AI/ML-powered fraud detection engine to analyze historical and real-time order, transaction, shipment, and delivery data.
  2. Integrated Power BI and data analytics to provide centralized visibility into fraud trends, risk levels, suspicious transactions, and investigation metrics.
  3. Analyzed multiple fraud indicators, including order value, customer behavior, delivery address, shipment history, delivery confirmations, tracking information, shipment routes, order frequency, transaction timing, and historical transaction patterns.
  4. Generated an automated fraud-risk score for each transaction.
  5. Classified transactions into Low Risk, Medium Risk, and High Risk categories.
  6. Applied data validation and transformation processes to prepare reliable transaction and shipment data for AI analysis and reporting.
  7. Created Power BI dashboards for fraud-risk distribution, suspicious transaction analysis, fraud trends, high-value risk monitoring, shipment and route anomalies, investigation metrics, and transaction-level risk insights.
  8. Implemented the processing flow: Transaction & Shipment Data → Data Validation & Transformation → AI/ML Analysis → Risk Score → Risk Classification → Power BI Analytics → Business Action.
  9. Applied a comprehensive QA strategy covering functional testing, AI model validation, positive and negative testing, false-positive and false-negative testing, boundary testing, data validation, API testing, regression testing, model-version testing, explainability testing, Power BI data and dashboard validation, performance testing, and end-to-end testing.
Project Delivery Lifecycle

Our Engineering & Delivery Process

Our structured project delivery approach takes you from discovery and planning to development, testing, and deployment, ensuring quality, transparency, and predictable outcomes at every stage.

I
PHASE 01

Discovery & Architecture

Deep-dive technical audit of existing systems, security baselines, API mapping, and comprehensive cloud target blueprinting.

Architecture BlueprintIntegration MatrixSecurity Baseline
II
PHASE 02

UX & System Prototyping

Role-based user journeys, wireframing, high-fidelity clickable Figma prototypes, and API contract specifications prior to build.

Interactive PrototypesDesign System TokensAPI Contracts
III
PHASE 03

Agile Sprint Engineering

Modular development sprints delivering clean, shippable code with automated CI/CD pipelines and continuous testing.

Production ModulesAutomated CI/CDPeer-Reviewed Code
IV
PHASE 04

QA & Security Hardening

End-to-end regression suites, cross-device verification, load stress audits, and penetration testing for enterprise resilience.

Automated Test MatrixPenetration AuditZero-Defect Sign-off
V
PHASE 05

Production Launch & Scale

Zero-downtime blue-green production deployment, real-time telemetry, administrator training runbooks, and ongoing SLA support.

Live Production ReleaseCloud TelemetrySLA Support Runbook
Visual Proof

Explore the Solution Through visuals

Featured Screenshot
Click to expand
Thumbnail 1
01 // VIEWView 01
Thumbnail 2
02 // VIEWView 02
Thumbnail 3
03 // VIEWView 03
Thumbnail 4
04 // VIEWView 04
Thumbnail 5
05 // VIEWView 05
The Outcome

What changed for the client.

The AI-based solution helped move the organization from rule-based fraud detection toward intelligent behavioral analysis.

Expected business benefits included:

  1. Improved fraud detection
  2. Reduced fraudulent shipments
  3. Reduced financial losses
  4. Lower manual investigation effort
  5. Better detection of unknown fraud patterns
  6. Reduced false positives

A key focus was ensuring that the AI could detect genuine fraud without unnecessarily disrupting legitimate logistics transactions.

Results & Business Impact

The numbers behind the rollout.

01
Fraud detection
Improved
02
Fraudulent shipments
Reduced
03
Fraud investigation
Faster
Reference Tech Stack

The full integration layer.

Microsoft Power BI
Microsoft Fabric
Data Analytics
DAX
Power Query
SQL Server
Azure Data Services
Machine Learning
AI/ML
REST APIs
Risk Scoring
Data Validation
RAG/AI Explainability
More Customer Stories

Other engagements worth a look.

Healthcare Regression Testing with MedSynq Nexus

Healthcare Regression Testing with MedSynq Nexus

MedSynq Nexus uses AI-assisted impact analysis to prioritize healthcare regression tests, targeting up to 60% shorter regression cycles in eligible scenarios.

Read case study→
AI Healthcare Inventory & Equipment Readiness Agent

AI Healthcare Inventory & Equipment Readiness Agent

Softree designed an AI healthcare agent to monitor inventory, flag expiry risks, assess equipment readiness, and coordinate replenishment across hospital departments.

Read case study→
AI Freight Documentation & Customs Compliance Agent

AI Freight Documentation & Customs Compliance Agent

A UAE freight operator used an AI documentation agent to identify shipment gaps, flag discrepancies, and route customs exceptions for review.

Read case study→
SQL Server to Microsoft Fabric Data Warehouse Migration

SQL Server to Microsoft Fabric Data Warehouse Migration

Modernizing an enterprise SQL Server data warehouse with Microsoft Fabric while maintaining data quality, performance, security, and reporting continuity.

Read case study→
Building a Governed AI & Data Intelligence Platform with Microsoft Fabric

Building a Governed AI & Data Intelligence Platform with Microsoft Fabric

A Fabric and AI data platform unifies enterprise data and documents, enabling governed RAG, analytics, and permission-aware AI experiences.

Read case study→
Retail Analytics Modernization with Microsoft Fabric.

Retail Analytics Modernization with Microsoft Fabric.

Softree modernized a retail analytics environment with Microsoft Fabric, improving data governance, semantic model reuse and Power BI performance.

Read case study→
FAQ

Frequently asked questions.

Softree delivers custom solutions across AI and automation, Power Platform, SharePoint customization, full-stack web and SaaS engineering, and data analytics.
We combine modern software engineering standards, secure cloud configurations, pre-built accelerators, and agile delivery methodologies to produce governed, scalable applications.
Our agile delivery model typically produces scoped initial MVPs in 4 to 8 weeks, with comprehensive enterprise deployments completed in 10 to 12 weeks.
Yes. We design and build secure custom API gateways, REST connectors, and database bridges to ensure our custom solutions integrate seamlessly with your existing legacy infrastructure.

Build faster with a reliable offshore engineering partner.

Partner with Softree to accelerate product delivery, modernize enterprise systems, and scale with confidence.

Person wearing a white hooded jacket and virtual reality headset against a shimmering abstract background.

What we offer

Enterprise Integration
Cloud Architecture
AI & Automation
Microsoft Solutions
Offshore Engineering

Offices

  • Bengaluru

    11th Floor, Prestige Tech Park, Platina 2 · Outer Ring Rd, Kadubeesanahalli · Bengaluru, Karnataka 560087, India

  • Cuttack

    PLOT B6-1628, SECTOR-10, CDA · Cuttack, Odisha 753014 · India

  • San Francisco

    San Francisco, CA 94108 · United States

Got a question, challenge, or idea?

Fill out the form or pick a time on our scheduler.

30-min discovery call

Same Calendly as our booking page · instant invite