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 complete reported losses of $455 million. The common estimated worth per theft rose 7.7% to $202,364.
More and more, these thefts consequence from a rising tactic often known as strategic cargo theft – a way during which criminals use stolen identities of motor carriers and logistics brokers to misdirect and steal freight. This theft has surged nationwide, notably in hotspots like California, Georgia, Illinois, Tennessee, and Texas, with incidents rising by a staggering 430% 12 months over 12 months.
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 house owners and operators ought to take proactive measures to safeguard cargo earlier than a loss and be ready to behave rapidly if a theft happens.
Prime 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 identification theft. Understanding widespread cargo theft ways will assist drivers, carriers, and shippers implement efficient threat administration methods to cut back the chance of loss.
One widespread tactic includes perpetrators impersonating a freight dealer or service to safe a cargo from a buyer. They then organize for an unsuspecting driver or service to move and ship the freight. The thieves usually 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 service has picked up the load, the thieves try and redirect it to a warehouse for fast transloading and product motion. When the cargo fails to reach at its vacation spot, the client investigates solely to find they may have contracted with a fraudulent dealer or service. The harmless driver, who unknowingly adopted false directions, is usually left bearing the blame and will get penalized.
In different instances, thieves will create a pretend brokerage to safe load contracts, then rent a third-party service to move the cargo. After receiving fee from the client, they disappear, leaving the precise service unpaid.
Extra types of strategic cargo theft embrace double brokering and consignee impersonation. In double brokering, a dealer contracts a reliable service to move freight however secretly rebrokers the load to a different get together with out the shipper’s consent, protecting the fee and leaving the precise service 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 information from malicious actors is crucial to stop cargo theft. Listed here are 4 finest practices to assist cut back your threat:
1. Safeguard and Confirm your Data
Leverage your personal experiences and insights from colleagues {and professional} networks as proactive defenses towards cargo scams. For instance, if an unfamiliar individual claims to symbolize one in every of your shippers, brokers, or carriers, confirm their identification with a trusted contact earlier than transferring ahead.
Pay shut consideration to particulars like e mail addresses, cellphone 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 service quantity, driver’s license, invoice of lading, service identify, and extra. Every time doable, use video surveillance or take pictures to keep up information.
Whereas this stage of scrutiny requires effort, it considerably deters dangerous actors concentrating on your priceless 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 make 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 Service Security Administration (FMCSA) and Carrier411 to vet suppliers and shield your operation.
3. Keep 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 most likely is.
Whereas pricing can differ, trucking prices – like gas, car upkeep, and driver pay – are typically steady. 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 finest practices stay important within the struggle towards trendy scams, together with cargo theft:
- Hold passwords confidential. Share them solely with trusted people, replace them often, and shut unused accounts.
- Keep away from clicking on hyperlinks from unknown sources. Encourage workers to hover over hyperlinks and examine the browser standing bar earlier than clicking.
- Don’t reply to unsolicited emails, particularly these impersonating reliable firms.
Conventional Cargo Theft Traits and Finest 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. Essentially the most focused areas have been warehouse/distribution facilities and truck stops, with prime commodities together with meals, drinks, and client family items.
Finest practices for drivers and carriers to cut 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 have to know.
- If you happen to suspect you’re being adopted, decelerate and let the car go. 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 prospect of being focused.
- Use theft-deterrent units to safe and monitor your freight.
- If the car should be left unattended, lock it, take the keys, and return rapidly.
- Upon return, scan the realm for suspicious individuals or automobiles and alter 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 along with your dealer or insurer to provoke the claims course of. By following these protocols, you’ll be able to successfully deal with 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 well-liked pricing for IAT policyholders:
- Enforcer Locks: Providing a variety 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 know-how.
For extra info, please contact the IAT Insurance coverage Loss Management division.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on find out how to mitigate threat? Electronic mail [email protected]
INTERESTED IN LEARNING MORE?
IAT Loss Management Specialist Jared Fritts and SVP of Industrial Truck Pete Matthews discuss extra about strategic cargo theft on IAT’s podcast, What’s Brewing. Tune in right here.
By Jared Fritts
