This put up is a part of a sequence sponsored by IAT Insurance coverage Group.
Cargo theft reached an all-time excessive in 2024 – up 26% from 2023, with whole reported losses of $455 million. The typical estimated worth per theft rose 7.7% to $202,364.
More and more, these thefts consequence from a rising tactic referred to as strategic cargo theft – a technique through which criminals use stolen identities of motor carriers and logistics brokers to misdirect and steal freight. This theft has surged nationwide, significantly in hotspots like California, Georgia, Illinois, Tennessee, and Texas, with incidents rising by a staggering 430% yr over yr.
CNBC carried out a six-month investigation into the crime, uncovering how more and more refined cargo theft rings are concentrating on America’s provide chain to steal whole truckloads carrying client items, meals, drinks, and electronics with close to impunity. Fleet homeowners and operators ought to take proactive measures to safeguard cargo earlier than a loss and be ready to behave shortly if a theft happens.
High Techniques for Strategic Cargo Theft
Diligence is crucial to guard cargo from more and more refined heists, which might manifest in several methods – from phishing and on-line scams to full-blown id theft. Understanding frequent cargo theft ways will assist drivers, carriers, and shippers implement efficient threat administration methods to scale back the chance of loss.
One frequent tactic entails perpetrators impersonating a freight dealer or provider to safe a cargo from a buyer. They then organize for an unsuspecting driver or provider to move and ship the freight. The thieves typically use industry-specific jargon, instruct drivers to not disclose supply particulars to the shipper, and will even tender money upon supply so as to add a layer of legitimacy.
As soon as the reliable provider has picked up the load, the thieves try to redirect it to a warehouse for fast transloading and product motion. When the cargo fails to reach at its vacation spot, the shopper investigates solely to find they may have contracted with a fraudulent dealer or provider. The harmless driver, who unknowingly adopted false directions, is commonly left bearing the blame and will get penalized.
In different instances, thieves will create a faux brokerage to safe load contracts, then rent a third-party provider to move the cargo. After receiving cost from the shopper, they disappear, leaving the precise provider unpaid.
Extra types of strategic cargo theft embrace double brokering and consignee impersonation. In double brokering, a dealer contracts a reliable provider to move freight however secretly rebrokers the load to a different occasion with out the shipper’s consent, preserving the cost and leaving the precise provider uncompensated. In consignee impersonation, scammers use phishing and cyberattacks to change recipient particulars and intercept shipments in transit.
Efficient Methods for Strategic Cargo Theft Prevention
Shielding your digital knowledge from malicious actors is crucial to stop cargo theft. Listed here are 4 greatest practices to assist scale back your threat:
1. Safeguard and Confirm your Data
Leverage your individual experiences and insights from colleagues {and professional} networks as proactive defenses towards cargo scams. For instance, if an unfamiliar particular person claims to characterize one in every of your shippers, brokers, or carriers, confirm their id with a trusted contact earlier than shifting ahead.
Pay shut consideration to particulars like e mail addresses, telephone numbers, bodily addresses, logos, and names. Even minor discrepancies can sign a rip-off – and result in substantial losses.
As a shipper or receiver, it’s important to trace each incoming and outgoing truck. Doc the motor provider quantity, driver’s license, invoice of lading, provider title, and extra. Each time potential, use video surveillance or take images to keep up information.
Whereas this stage of scrutiny requires effort, it considerably deters unhealthy actors concentrating on your invaluable cargo.
2. Display screen New Partnerships
Like with private relationships, ongoing safety depends on working with trusted companions. Longstanding relationships with vetted carriers and brokers be sure that your pursuits are understood and prioritized.
When evaluating new companions, carry out thorough due diligence. Use references, skilled networks, and instruments just like the Federal Motor Provider Security Administration (FMCSA) and Carrier411 to vet suppliers and shield your operation.
3. Preserve a Wholesome Stage of Skepticism
Keep cautious when reviewing gives from carriers, brokers, or shippers. If one thing appears too good to be true, it in all probability is.
Whereas pricing can range, trucking prices – like gasoline, automobile upkeep, and driver pay – are usually secure. Be skeptical of unusually low charges or overly beneficiant pay, and examine the reasoning behind such gives earlier than committing.
4. Guarantee Data Safety Protocols are in Place
Though elementary, these cybersecurity greatest practices stay important within the struggle towards fashionable scams, together with cargo theft:
- Hold passwords confidential. Share them solely with trusted people, replace them repeatedly, and shut unused accounts.
- Keep away from clicking on hyperlinks from unknown sources. Encourage workers to hover over hyperlinks and verify the browser standing bar earlier than clicking.
- Don’t reply to unsolicited emails, particularly these impersonating reliable firms.
Conventional Cargo Theft Developments and Greatest Practices
Whereas strategic cargo theft has surged in recent times, conventional cargo theft stays prevalent. In 2024, 46% of all cargo theft occurred in California, Texas, and Illinois. Probably the most focused places had been warehouse/distribution facilities and truck stops, with high commodities together with meals, drinks, and client family items.
Greatest practices for drivers and carriers to scale back the chance embrace:
- Embrace cargo safety in your pre-trip inspection.
- Be strategic with parking: again trailers towards buildings, fences, or different trailers; park in well-lit, high-traffic areas; and search for surveillance cameras.
- Don’t talk about your load or route with anybody who doesn’t must know.
- When you suspect you’re being adopted, decelerate and let the automobile move. If that fails, exit at a secure location. Contact regulation enforcement if suspicion stays.
- Attempt to drive a number of hours after pick-up earlier than making any stops, lowering the possibility of being focused.
- Use theft-deterrent units to safe and monitor your freight.
- If the automobile have to be left unattended, lock it, take the keys, and return shortly.
- Upon return, scan the world for suspicious individuals or autos and regulate accordingly.
- Comply with all firm insurance policies and procedures associated to cargo safety.
Ought to a theft happen, promptly file a report with regulation enforcement, notify all related stakeholders, and collaborate together with your dealer or insurer to provoke the claims course of. By following these protocols, you may successfully tackle and mitigate the impacts of cargo theft.
IAT Insurance coverage Vendor Partnerships to Forestall Cargo Theft
IAT Insurance coverage has added two new companions to its Loss Management vendor checklist, providing cargo theft prevention merchandise at most popular pricing for IAT policyholders:
- Enforcer Locks: Providing a spread of professional quality safety merchandise, together with padlocks, trailer door bar locks, air cuff locks, and trailer kingpin locks.
- 7P Options: Specializing in covert GPS cargo monitoring and trailer geo-fencing expertise.
For extra data, please contact the IAT Insurance coverage Loss Management division.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on how you can mitigate threat? E mail [email protected]
INTERESTED IN LEARNING MORE?
IAT Loss Management Specialist Jared Fritts and SVP of Business Truck Pete Matthews discuss extra about strategic cargo theft on IAT’s podcast, What’s Brewing. Tune in right here.
By Jared Fritts