This submit 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 whole reported losses of $455 million. The common estimated worth per theft rose 7.7% to $202,364.
More and more, these thefts end result from a rising tactic often known as strategic cargo theft – a technique by 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% yr over yr.
CNBC carried out a six-month investigation into the crime, uncovering how more and more subtle cargo theft rings are concentrating on America’s provide chain to steal whole truckloads carrying shopper 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.
High Techniques for Strategic Cargo Theft
Diligence is crucial to guard cargo from more and more subtle heists, which might 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 danger administration methods to scale back the chance of loss.
One frequent tactic entails 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 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 legit 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 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 client, they disappear, leaving the precise service unpaid.
Further types of strategic cargo theft embody double brokering and consignee impersonation. In double brokering, a dealer contracts a legit service to move freight however secretly rebrokers the load to a different get together 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 knowledge from malicious actors is crucial to stop cargo theft. Listed below are 4 greatest practices to assist scale back your danger:
1. Safeguard and Confirm your Info
Leverage your personal experiences and insights from colleagues {and professional} networks as proactive defenses in opposition to cargo scams. For instance, if an unfamiliar individual claims to symbolize one among your shippers, brokers, or carriers, confirm their identification 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 service quantity, driver’s license, invoice of lading, service title, and extra. Each time attainable, use video surveillance or take images to keep up data.
Whereas this stage of scrutiny requires effort, it considerably deters unhealthy actors concentrating on your precious 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 Service Security Administration (FMCSA) and Carrier411 to vet suppliers and shield your operation.
3. Keep a Wholesome Stage of Skepticism
Keep cautious when reviewing affords 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 gas, automobile upkeep, and driver pay – are usually secure. Be skeptical of unusually low charges or overly beneficiant pay, and examine the reasoning behind such affords earlier than committing.
4. Guarantee Info Safety Protocols are in Place
Though elementary, these cybersecurity greatest practices stay important within the struggle in opposition to fashionable scams, together with cargo theft:
- Preserve passwords confidential. Share them solely with trusted people, replace them frequently, and shut unused accounts.
- Keep away from clicking on hyperlinks from unknown sources. Encourage staff to hover over hyperlinks and test the browser standing bar earlier than clicking.
- Don’t reply to unsolicited emails, particularly these impersonating legit firms.
Conventional Cargo Theft Traits and Greatest Practices
Whereas strategic cargo theft has surged lately, conventional cargo theft stays prevalent. In 2024, 46% of all cargo theft occurred in California, Texas, and Illinois. Essentially the most focused areas had been warehouse/distribution facilities and truck stops, with prime commodities together with meals, drinks, and shopper family items.
Greatest practices for drivers and carriers to scale back the danger embody:
- Embrace 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 must know.
- If you happen to suspect you’re being adopted, decelerate and let the automobile 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 gadgets to safe and monitor your freight.
- If the automobile have to be left unattended, lock it, take the keys, and return rapidly.
- Upon return, scan the realm for suspicious individuals 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 may 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 listing, 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 the best way to mitigate danger? 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
Subjects
Fraud
Trucking
