Descartes Launches FraudGuard 2.0 to Combat Freight and Cargo Fraud

The Descartes Systems Group Inc. DSGX has launched Descartes MacroPoint FraudGuard 2.0—an enhanced freight fraud detection technology aimed at helping shippers, freight brokers and third-party logistics providers (3PLs) tackle increasingly advanced fraud and cargo theft tactics.

The updated solution brings new capabilities that span pre-tender, pre-pickup and in-transit stages of shipments. This enables businesses to maintain a reliable, compliant carrier network while improving decision-making accuracy and identifying risks like identity fraud or double brokering before they escalate into financial or reputational losses.

What Does Descartes FraudGuard Offer?

FraudGuard 2.0 leverages Descartes MacroPoint’s comprehensive historical and real-time freight visibility data to enhance shipment protection. It automates in-transit risk monitoring and provides timely alerts, allowing users to assess carrier and driver legitimacy quickly without delaying shipment assignments. The system also actively monitors for 16 critical risk indicators, such as identity spoofing and unusual travel behaviors, helping companies stay ahead of potential threats.

Key features of FraudGuard 2.0 include a Carrier and Driver Lookup Tool that gives users quick access to carrier performance and risk profiles via Department of Transportation numbers or phone numbers, enabling more informed load planning. Custom Carrier Insights alerts users to suspicious behavior, including the use of VoIP numbers or excessive load acceptance. Meanwhile, continuous In-Transit Risk Monitoring detects anomalies like GPS spoofing, route deviations and abnormal stops, ensuring faster responses to theft or tampering attempts.

Management highlighted that the new features provide greater visibility and control, enabling customers to better safeguard their operations, brand reputation and bottom line. Enhanced security not only supports compliance but also helps logistics firms differentiate their services while minimizing fraud-related losses.

Descartes recently reported first-quarter fiscal 2026 non-GAAP earnings per share of 41 cents, which lagged the Zacks Consensus Estimate by 10.9%. The bottom line grew 2.5% year over year but fell 4.7% sequentially. Revenues in the quarter were up 11.5% year over year, driven by acquisition synergies and steady growth from new and existing customers, especially in global trade intelligence and MacroPoint freight visibility. However, the top line missed the consensus mark due to a volatile macroeconomic environment and the pressures faced by shippers, carriers and logistics service providers.

In March 2025, Descartes acquired 3GTMS for $112.7 million, enhancing its TMS capabilities to better support global shippers and logistics providers. To address macroeconomic challenges, DSGX launched a cost-reduction plan, including a 7% workforce cut and $4 million in restructuring charges during the second quarter of fiscal 2026, which will also affect cash flow. However, it anticipates annualized savings of $15 million once the plan is fully implemented.

DSGX’s Zacks Rank & Stock Price Performance

DSGX currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 2.1% in the past year compared with the Zacks Computer-Software industry's growth of 14.3%.

Stocks to Consider From the Computer Software Space

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