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 complete 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 referred to 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, 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 subtle cargo theft rings are focusing 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 Ways for Strategic Cargo Theft

Diligence is crucial to guard cargo from more and more subtle heists, which may manifest in several 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 chance of loss.

One widespread tactic includes perpetrators impersonating a freight dealer or provider to safe a cargo from a buyer. They then prepare 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 official provider 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 provider. The harmless driver, who unknowingly adopted false directions, is commonly left bearing the blame and will get penalized.

In different instances, 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 embrace double brokering and consignee impersonation. In double brokering, a dealer contracts a official provider to move freight however secretly rebrokers the load to a different celebration with out the shipper’s consent, retaining 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 knowledge from malicious actors is crucial to stop cargo theft. Listed below are 4 finest practices to assist scale back your threat:

1. Safeguard and Confirm your Data

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 certainly one 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 provider quantity, driver’s license, invoice of lading, provider title, and extra. Every time potential, use video surveillance or take images to take care of information.

Whereas this degree of scrutiny requires effort, it considerably deters dangerous actors focusing 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 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. Preserve 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 most likely is.

Whereas pricing can fluctuate, trucking prices – like gas, car upkeep, and driver pay – are typically secure. 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 basic, 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 commonly, and shut unused accounts.
Keep away from clicking on hyperlinks from unknown sources. Encourage workers to hover over hyperlinks and verify the browser standing bar earlier than clicking.
Don’t reply to unsolicited emails, particularly these impersonating official firms.

Conventional Cargo Theft Developments 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. Essentially the most focused places 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 embrace:

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.
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, decreasing the prospect 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 world for suspicious individuals or automobiles 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 may 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 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 info, please contact the IAT Insurance coverage Loss Management division.

ASK A LOSS CONTROL REPRESENTATIVE
Have a query on mitigate threat? E mail losscontroldirect@iatinsurance.com

INTERESTED IN LEARNING MORE?
IAT Loss Management Specialist Jared Fritts and SVP of Business Truck Pete Matthews speak extra about strategic cargo theft on IAT’s podcast, What’s Brewing. Tune in right here.