A Fraudulent Blind Shipment Detection Framework in Logistics

An emerging type of fraud involves malicious senders exploiting the blind shipment and cash-on-delivery (COD) mechanisms by dispatching large volumes of unsolicited, low-cost parcels. If unsuspecting receivers accept these parcels, they pay for both shipping and goods; otherwise, logistics providers bear the round-trip shipping costs. Existing detection techniques, which rely on extensive labeled cases, struggle with this emerging fraud because receivers' unawareness and low transaction values discourage complaints, resulting in few confirmed cases. Therefore, we propose leveraging receivers' complaints, though not initially collected for fraud detection, to uncover subtle indicators of fraud patterns, while addressing three challenges: (C1) noise-rich dialogues(C2) data privacy concerns, and (C3) ever-evolving fraud patterns. To address them, we design BLOFF, a Blind shipment detection Framework for LO gistics Fraud powered by large language models (LLMs). Specifically, BLOFF includes three components: i) Sensitivity Anonymization to protect sensitive user information; ii) Dialogue Profile Distillation to transform informal dialogues into structured representation, addressing C1, and distill knowledge from a teacher LLM (GPT-4o) to a lightweight student LLM (ChatGLM4-9B), addressing C2; ii) Multi-faceted Context Augmentation to enhance the interpretation of fraud signatures and adaptation of evolving patterns, addressing C3. We evaluate BLOFF on about 56,000 complaints records collected from JD Logistics between January and November 2024. Results show that BLOFF outperforms state-of-the-art methods, achieving a 10.19% improvement in precision. Furthermore, during its real-world deployment in December 2024, BLOFF identified over 90 fraudulent parcels with a 91.4% precision.