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.
Our Solution Architecture

How we delivered it.

MPB
Microsoft Power BI
Integrated Microsoft Power BI layer in the solution architecture.
MF
Microsoft Fabric
Integrated Microsoft Fabric layer in the solution architecture.
DA
Data Analytics
Integrated Data Analytics layer in the solution architecture.
D
DAX
Integrated DAX layer in the solution architecture.
PQ
Power Query
Integrated Power Query layer in the solution architecture.
SS
SQL Server
Integrated SQL Server layer in the solution architecture.
ADS
Azure Data Services
Integrated Azure Data Services layer in the solution architecture.
ML
Machine Learning
Integrated Machine Learning layer in the solution architecture.
A
AI/ML
Integrated AI/ML layer in the solution architecture.
RA
REST APIs
Integrated REST APIs layer in the solution architecture.
RS
Risk Scoring
Integrated Risk Scoring layer in the solution architecture.
DV
Data Validation
Integrated Data Validation layer in the solution architecture.
RE
RAG/AI Explainability
Integrated RAG/AI Explainability layer in the solution architecture.
Visual Proof

Explore the Solution Through visuals

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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
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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.

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