Descartes launches enhanced freight fraud protection technology

Published 07/07/2025, 11:50
Descartes launches enhanced freight fraud protection technology

ATLANTA - Descartes Systems Group (NASDAQ:DSGX) (TSX:DSG), an $8.85 billion logistics technology company with robust revenue growth of ~14% over the last twelve months and an impressive ~76% gross profit margin, released Descartes MacroPoint FraudGuard 2.0, an upgraded freight fraud detection tool, the company announced Monday. According to InvestingPro data, the company maintains strong cash flows and operates with minimal debt.

The new technology aims to help shippers, freight brokers, and third-party logistics providers protect against fraud and cargo theft through expanded capabilities for pre-tender, pre-pickup, and in-transit shipments.

The solution leverages historical and real-time visibility data to evaluate carrier and driver legitimacy while monitoring shipments across 16 critical in-transit data points to detect potential fraud, double brokering, and suspicious activity.

Key features include a carrier and driver lookup tool that provides historical performance data using Department of Transportation numbers or driver phone numbers, carrier insights that flag suspicious carriers or drivers, and continuous in-transit risk monitoring that detects activities such as GPS spoofing or route deviations.

"Descartes MacroPoint FraudGuard 2.0 brings next-level freight visibility and control to our customers with new alerts and lookup tools that help companies better protect their shipments, reputation and bottom line," said Robert Derin, Director of Product at Descartes.

Circle Logistics, which uses the technology, reported improved operational confidence. "Its automated alerts and comprehensive insights have not only reduced the manual workload but also enabled us to proactively identify and prevent a range of fraud attempts," said Tore Giannone, Director of Operations at Circle Logistics.

The technology is designed to help logistics companies maintain compliant carrier networks while reducing fraud-related losses, according to the company’s press release statement. While currently trading at premium valuations, detailed analysis and 12+ additional ProTips are available through InvestingPro’s comprehensive research report, helping investors make informed decisions about this growing logistics technology leader.

In other recent news, Descartes Systems Group reported that shareholders approved all proposed items at its annual meeting, with significant participation representing over 90% of the company’s outstanding shares. All ten director nominees were elected to the board, and KPMG LLP was confirmed as the company’s auditors. Additionally, the Say-On-Pay resolution received strong support. Meanwhile, RBC Capital has lowered its price target for Descartes Systems Group to $126 from $130, citing a slowdown in global trade that impacted the company’s first-quarter performance. Despite this adjustment, RBC Capital maintains an Outperform rating, noting that Descartes’ adjusted EBITDA was in line with expectations. The company has responded to the trade slowdown by reducing its workforce by 7% and setting a second-quarter baseline below expectations. Furthermore, Descartes Systems Group has filed a Form 6-K with the U.S. Securities and Exchange Commission, providing updated information to investors. This regulatory filing includes the 2025 Annual General Meeting Circular and serves to inform investors about the company’s corporate matters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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