This publish 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 common estimated worth per theft rose 7.7% to $202,364.
More and more, these thefts outcome from a rising tactic referred to 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, significantly 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 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 important to guard cargo from more and more subtle heists, which may manifest in numerous methods – from phishing and on-line scams to full-blown identification theft. Understanding widespread cargo theft techniques will assist drivers, carriers, and shippers implement efficient threat administration methods to scale back the probability of loss.
One widespread 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 will even tender money upon supply so as to add a layer of legitimacy.
As soon as the reputable 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 shopper 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 cost from the shopper, 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 reputable service to move freight however secretly rebrokers the load to a different occasion with out the shipper’s consent, holding the cost 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 forestall cargo theft. Listed here are 4 finest practices to assist cut 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 individual claims to symbolize certainly one 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, 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. At any time when attainable, use video surveillance or take photographs to keep up information.
Whereas this degree of scrutiny requires effort, it considerably deters dangerous actors concentrating on your worthwhile 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 Provider Security Administration (FMCSA) and Carrier411 to vet suppliers and defend your operation.
3. Preserve a Wholesome Degree 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 differ, trucking prices – like gas, car 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 Info Safety Protocols are in Place
Though elementary, 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 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 reputable corporations.
Conventional Cargo Theft Traits and Finest 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. Probably the most focused areas have been warehouse/distribution facilities and truck stops, with prime commodities together with meals, drinks, and shopper family items.
Finest practices for drivers and carriers to scale back the chance 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.
- In case you suspect you’re being adopted, decelerate and let the car cross. 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 observe 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 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 along with your dealer or insurer to provoke the claims course of. By following these protocols, you possibly can successfully tackle and mitigate the impacts of cargo theft.
IAT Insurance coverage Vendor Partnerships to Stop Cargo Theft
IAT Insurance coverage has added two new companions to its Loss Management vendor listing, providing cargo theft prevention merchandise at most well-liked pricing for IAT policyholders:
- Enforcer Locks: Providing a spread of industrial 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 how one can mitigate threat? E mail losscontroldirect@iatinsurance.com
INTERESTED IN LEARNING MORE?
IAT Loss Management Specialist Jared Fritts and SVP of Industrial Truck Pete Matthews speak extra about strategic cargo theft on IAT’s podcast, What’s Brewing. Tune in right here.
By Jared Fritts
