This publish is a part of a collection 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 outcome from a rising tactic often called strategic cargo theft – a way wherein 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% yr over yr.
CNBC performed a six-month investigation into the crime, uncovering how more and more subtle cargo theft rings are focusing on America’s provide chain to steal total 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 shortly if a theft happens.
Prime Ways for Strategic Cargo Theft
Diligence is important to guard cargo from more and more subtle heists, which may manifest in several methods – from phishing and on-line scams to full-blown identification theft. Understanding frequent cargo theft techniques will assist drivers, carriers, and shippers implement efficient threat administration methods to scale back the probability of loss.
One frequent tactic includes perpetrators impersonating a freight dealer or service to safe a cargo from a buyer. They then prepare for an unsuspecting driver or service to move and ship the freight. The thieves typically use industry-specific jargon, instruct drivers to not disclose supply particulars to the shipper, and should even tender money upon supply so as to add a layer of legitimacy.
As soon as the respectable service 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 could have contracted with a fraudulent dealer or service. The harmless driver, who unknowingly adopted false directions, is commonly left bearing the blame and will get penalized.
In different circumstances, thieves will create a faux brokerage to safe load contracts, then rent a third-party service to move the cargo. After receiving fee from the shopper, they disappear, leaving the precise service unpaid.
Extra types of strategic cargo theft embody double brokering and consignee impersonation. In double brokering, a dealer contracts a respectable service to move freight however secretly rebrokers the load to a different celebration with out the shipper’s consent, retaining 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 forestall cargo theft. Listed below are 4 finest practices to assist scale back your threat:
1. Safeguard and Confirm your Info
Leverage your individual experiences and insights from colleagues {and professional} networks as proactive defenses in opposition to cargo scams. For instance, if an unfamiliar particular person claims to symbolize one in all 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. At any time when doable, use video surveillance or take images to keep up information.
Whereas this stage of scrutiny requires effort, it considerably deters dangerous actors focusing on your beneficial 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 certain 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 defend 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 gasoline, car upkeep, and driver pay – are typically secure. Be skeptical of unusually low charges or overly beneficiant pay, and examine the reasoning behind such gives earlier than committing.
4. Guarantee Info Safety Protocols are in Place
Though basic, these cybersecurity finest practices stay important within the battle in opposition to trendy scams, together with cargo theft:
- Preserve passwords confidential. Share them solely with trusted people, replace them commonly, 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 respectable corporations.
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. Probably the most focused places had 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 scale back the danger embody:
- Embody cargo safety in your pre-trip inspection.
- Be strategic with parking: again trailers in opposition to 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.
- In the event you suspect you’re being adopted, decelerate and let the car go. If that fails, exit at a protected 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 car have to be left unattended, lock it, take the keys, and return shortly.
- Upon return, scan the realm for suspicious folks or automobiles and modify accordingly.
- Observe 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’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 record, 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 data, please contact the IAT Insurance coverage Loss Management division.
ASK A LOSS CONTROL REPRESENTATIVE
Have a query on find out how to mitigate threat? E mail losscontroldirect@iatinsurance.com
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
