Cargo Theft Trends and How You Can Avoid Vulnerability
Fraud continues to be a top concern in trucking. Cargo theft increased 20% in 2022, for an estimated loss of $223 million in stolen goods. Criminals are getting more intentional with their cargo theft tactics and taking direct aim at the supply chain where ransom demands are likely to be met to avoid costly downtime.
Scammers are being more selective of the goods they target and how they infiltrate the cargo supply chain. These crimes lead to direct financial loss for carriers, brokers, and shippers that can be devastating for businesses.
Thieves are becoming savvier on how to exploit trucking technology, particularly when it comes to intercepting cargo. They are exploiting company and driver vulnerabilities to access sensitive information to divert and steal cargo.
We partnered with Roanoke, a leading provider of insurance and surety bond solutions for transportation providers, to discuss supply chain cargo theft tactics and how you can protect your business. Watch the webinar to learn more about trending cargo scams and 9 steps you can implement to keep your company safe from scam vulnerability.
Common fraud schemes currently in the cargo supply chain
- Stealing the identity of a legitimate trucker. Thieves use phishing attacks and other online schemes to access a registered trucker’s identity. By using the identity of a trucker with an approved authority in good standing, they can leverage double broker schemes to deceive law enforcement and steal cargo virtually undetected.
- Posing as a freight forwarder. An imposter will act as a middleman between two legitimate entities on a freight exchange site. When the trucker collects the goods, the bad actor will provide new delivery instructions to an alternate address. Upon delivery, the cargo is stolen.
To protect your business, and your reputation, incorporate proactive security measures to reduce the risks of fraud and cargo theft.
Mitigation tips to counter fictitious pickups and cargo theft
- Be diligent, especially on Fridays. Thieves know Fridays mean tight shipping deadlines. Continue to vet all carriers and brokers and collect verifiable identification to avoid any security gaps.
- Verify a driver’s legitimacy by calling the phone number listed on their authority and the trucking company they are associated with while the trucker is still at the loading point.
- Use data analytics and machine learning to detect fraudulent activity and perform regular security audits.
- Add GPS tracking to the cargo and the trailer or hauling device to track movement from pickup to delivery.
- Train employees to recognize and report suspicious activities. Open communication is key.
- Establish best business practices by collaborating with law enforcement, industry associations, and stake holders to understand fraud trends and preventative measures.
Roanoke Insurance Group is the leading provider of insurance and surety bond solutions for transportation providers. In partnership with Truckstop, Roanoke offers an “All Risk” cargo insurance program, contingent cargo, regulatory bonds, and related business property and liability insurance.
Roanoke also offers Spike Insurance Solution in partnership with Redkik where you can quickly and easily take risk off the table and insure gaps in your insurance on a transactional basis. This gives you flexibility for your business and the opportunity to choose what you want covered and when you want it covered.
Find out how our platform gives you the visibility you need to get more done.
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