Cargo Theft/Identity Theft/Pilfering/Forgery
As the holiday shipping season progresses, the issue of fraud/theft demands urgent attention from every link in the supply chain. The peak shipping period typically sees increased security risks, making it essential for all stakeholders to remain attentive. Cargo theft is the most prevalent form of fraud within the trucking industry and has seen a dramatic increase, with sophisticated schemes such as strategic cargo theft becoming more common.
Recent statistics reveal a staggering 600% increase in cargo theft between November 2022 and March 2023, with experts predicting no signs of a slowdown. The Transportation Intermediaries Association and CargoNet report that California, Texas, and Illinois account for 73% and 57% of all cargo thefts in Q1 and Q2 of 2024, respectively.
Criminals increasingly rely on sophisticated methods to acquire sensitive shipment data that allow thieves to track and stalk those loads. This information can even be obtained from one’s own employees. Recognizing this and the risks associated with not securing shipment details is vital for companies.
Thieves are employing sophisticated methods, such as email spoofing and phishing to acquire sensitive shipment details and personal data (identity theft) that allows them to exploit a company or individual. Once they have those details, you and your security protocols are the last layer of defense.
Three Key Preventive Strategies
Confidentiality: Educate your team about the sensitivity of shipment details and the importance of not divulging those details outside of trusted circles.
Route Variation: Regularly alter routes to disrupt any patterns that thieves might exploit.
Verification: Conduct due diligence when dealing with unfamiliar vendors. Confirm identities through direct contact with the company.
As the trucking industry becomes more technologically advanced, integrating security technology is vital. Tracking/security devices should be installed on each piece of equipment to help monitor, alert, detour and recover. Example: Utilizing GPS tracking can provide real-time location updates, helping to deter thieves and recover stolen cargo more swiftly.
As criminal tactics become increasingly sophisticated, the need for constant vigilance and updated prevention strategies is paramount. Emerging technologies may soon revolutionize how the industry secures cargo but until then be ever watchful and do your part and protect your equipment and your data.
If you do not already have an anti-fraud/theft training process in place, it is time. Fraud/theft are tied to your reputation, your cost of doing business, your safety rating, your finances and so much more.
Below are some strategies that you can incorporate into your training programs.
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- When encountering unfamiliar individuals claiming to be from a vendor, reach out to that vendor and confirm the legitimacy of the that individual before proceeding.
- If/when you receive a promise of an offer that is significantly generous, be skeptical and make the effort to understand the reason behind such offers.
- Refrain from responding to unsolicited emails and clicking on links from unfamiliar sources.
- Monitor and verify carrier legitimacy. Check how long a carrier has been in business, confirm DOT registration, and ensure that phone numbers and email domains are valid.
- Maintain password confidentiality and strength. Regularly update passwords and close accounts or systems that are no longer needed.
- Regularly update training and security protocols to stay ahead of evolving threats.
Despite these extensive precautions, fraudsters adapt and find new ways to exploit vulnerabilities in the supply chain. Adding to the already long list of criminal strategies is a new form of fraud — document forgery which consists of the non-delivery of whole shipments. Assuming the role of a professional driver to fraudulently secure a load, criminals drive the load to its intended destination, partially unload it and then alter the bill of lading to show the complete load was delivered.
Freight fraud in the trucking industry represents an estimated $800 million annually. There is no estimate for how much that costs a carrier or broker’s business.