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 typical 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 way 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% 12 months over 12 months.
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 complete 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 rapidly if a theft happens.
High Ways for Strategic Cargo Theft
Diligence is crucial to guard cargo from more and more subtle heists, which might manifest in numerous methods – from phishing and on-line scams to full-blown id theft. Understanding widespread cargo theft techniques will assist drivers, carriers, and shippers implement efficient threat administration methods to cut back the probability of loss.
One widespread tactic includes perpetrators impersonating a freight dealer or provider to safe a cargo from a buyer. They then organize for an unsuspecting driver or provider 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 professional provider 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 provider. 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 pretend brokerage to safe load contracts, then rent a third-party provider to move the cargo. After receiving cost from the client, they disappear, leaving the precise provider unpaid.
Further types of strategic cargo theft embody double brokering and consignee impersonation. In double brokering, a dealer contracts a professional provider to move freight however secretly rebrokers the load to a different occasion with out the shipper’s consent, conserving the cost and leaving the precise provider 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 here 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 signify one among your shippers, brokers, or carriers, confirm their id with a trusted contact earlier than transferring ahead.
Pay shut consideration to particulars like electronic 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 provider quantity, driver’s license, invoice of lading, provider identify, and extra. At any time when doable, use video surveillance or take images to take care of data.
Whereas this stage of scrutiny requires effort, it considerably deters dangerous actors concentrating on your precious 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 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. Keep a Wholesome Stage of Skepticism
Keep cautious when reviewing presents 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 usually secure. Be skeptical of unusually low charges or overly beneficiant pay, and examine the reasoning behind such presents earlier than committing.
4. Guarantee Info Safety Protocols are in Place
Though basic, these cybersecurity finest 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 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 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 areas have 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 cut back the chance 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 focus on your load or route with anybody who doesn’t must know.
- In the event you suspect you’re being adopted, decelerate and let the car move. 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 prospect of being focused.
- Use theft-deterrent gadgets to safe and observe your freight.
- If the car have to be left unattended, lock it, take the keys, and return rapidly.
- Upon return, scan the world for suspicious individuals or automobiles and modify accordingly.
- Comply with 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 tackle 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 checklist, 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 expertise.
For extra data, 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
