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 typical estimated worth per theft rose 7.7% to $202,364.
More and more, these thefts end result from a rising tactic often called strategic cargo theft – a technique 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 complete truckloads carrying shopper items, meals, drinks, and electronics with close to impunity. Fleet homeowners 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 refined heists, which might manifest in numerous methods – from phishing and on-line scams to full-blown id theft. Understanding widespread cargo theft ways will assist drivers, carriers, and shippers implement efficient threat administration methods to cut back the probability of loss.
One widespread 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 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 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 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 embrace 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 social gathering with out the shipper’s consent, preserving 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 here are 4 greatest practices to assist cut back your threat:
1. Safeguard and Confirm your Data
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 characterize considered one of your shippers, brokers, or carriers, confirm their id 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 doable, use video surveillance or take images to keep up data.
Whereas this degree of scrutiny requires effort, it considerably deters dangerous actors concentrating on your worthwhile cargo.
2. Display 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 Provider Security Administration (FMCSA) and Carrier411 to vet suppliers and defend your operation.
3. Keep a Wholesome Stage of Skepticism
Keep cautious when reviewing provides from carriers, brokers, or shippers. If one thing appears too good to be true, it in all probability is.
Whereas pricing can fluctuate, trucking prices – like gas, car upkeep, and driver pay – are usually steady. Be skeptical of unusually low charges or overly beneficiant pay, and examine the reasoning behind such provides earlier than committing.
4. Guarantee Data Safety Protocols are in Place
Though elementary, these cybersecurity greatest practices stay important within the struggle in opposition to trendy 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 workers to hover over hyperlinks and examine the browser standing bar earlier than clicking.
- Don’t reply to unsolicited emails, particularly these impersonating respectable firms.
Conventional Cargo Theft Tendencies 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 shopper family items.
Finest practices for drivers and carriers to cut back the chance embrace:
- 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 must know.
- If you happen to suspect you’re being adopted, decelerate and let the car cross. If that fails, exit at a secure location. Contact legislation enforcement if suspicion stays.
- Attempt to drive a number of hours after pick-up earlier than making any stops, decreasing the possibility of being focused.
- Use theft-deterrent gadgets 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 realm for suspicious folks or automobiles and regulate accordingly.
- Observe all firm insurance policies and procedures associated to cargo safety.
Ought to a theft happen, promptly file a report with legislation 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 handle 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 well-liked pricing for IAT policyholders:
- Enforcer Locks: Providing a variety 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 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 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
