Contained in the $455M Cargo Theft Surge – 4 Methods to Defend Your Fleet

This publish is a part of a collection sponsored by IAT Insurance coverage Group.

Cargo theft reached an all-time high 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 known as strategic cargo theft – a technique wherein 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% year over year.

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 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 Techniques for Strategic Cargo Theft

Diligence is important to guard cargo from more and more refined heists, which might manifest in numerous methods – from phishing and on-line scams to full-blown id 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 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 professional 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 could 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 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.

Extra types of strategic cargo theft embody double brokering and consignee impersonation. In double brokering, a dealer contracts a professional service to move freight however secretly rebrokers the load to a different get together with out the shipper’s consent, holding 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 forestall cargo theft. Listed here are 4 finest 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 towards cargo scams. For instance, if an unfamiliar individual claims to symbolize 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, 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. Each time doable, 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 helpful 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 affords from carriers, brokers, or shippers. If one thing appears too good to be true, it most likely is.

Whereas pricing can range, 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 affords earlier than committing.

4. Guarantee Info Safety Protocols are in Place

Though elementary, these cybersecurity finest practices stay important within the struggle towards fashionable scams, together with cargo theft:

• Hold 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 verify the browser standing bar earlier than clicking.
• Don’t reply to unsolicited emails, particularly these impersonating professional firms.

Conventional Cargo Theft Tendencies 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 high commodities together with meals, drinks, and client family items.

Greatest practices for drivers and carriers to scale back the chance embody:

• Embody 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 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 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 shortly.
• Upon return, scan the world for suspicious folks or autos 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 possibly can successfully deal with 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 checklist, 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 Solutions: Specializing in covert GPS cargo monitoring and trailer geo-fencing expertise.

For extra info, please contact the IAT Insurance coverage Loss Management division.

ASK A LOSS CONTROL REPRESENTATIVE
Have a query on easy methods to mitigate danger? E 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 here.

By Jared Fritts

Subjects
Fraud
Trucking