Cargo theft is getting worse. In 2023, cargo theft incidents spiked 57% YoY, according to data from CargoNet. The trend continued in 2024, rising to “unprecedented levels,” with incidents up 27% YoY, CargoNet reported. And this year, supply chain theft events increased 13% YoY in the second quarter, CargoNet reported. Thieves steal an average of $203,586 worth of cargo value per incident, it estimated.
The threat is not only growing but evolving, prompting the need for new investments and a mindset shift by organizations. “We have to go to more of a hunter type of mindset versus being prey to these folks,” Keith Lewis, CargoNet VP of operations, told CFO Brew. “The clues are there every time they steal a load. We just have to start using those clues to prevent fraud.”
A changing threat landscape. Modern cargo criminals are more akin to a well-organized cybercriminal network than the opportunistic band of thieves with a sprinter van you might imagine.
“The reason why this is different is because [criminals] are using technology to trick supply chain participants into delivering, essentially, the freight right to them,” Bob Costello, chief economist and SVP of international trade and security policy with the American Trucking Associations (ATA), told us.
One popular method is known as “double brokering,” Costello said, where a criminal will pose as a trucking company and secure a contract from a shipper to take their cargo to the delivery point. They’ll then contract with an actual carrier to deliver the load, but to a different address. The cargo is gone before anyone notices.
Criminals also use phishing email campaigns to steal a carrier’s identity, according to Lewis.
Thieves know what products are in high demand and will adjust their tactics accordingly. Classic examples are food and beverage products or electronics, which criminals may target more during periods of inflation.
“We’re not seeing an increase in the amount [of cargo stolen] based on inflation, but they will target certain commodities that are more impacted by inflation,” Scott Cornell, national transportation and inland marine practice lead with Travelers, said during a recent webinar hosted by the insurance company's public policy division.
Impacts of cargo theft. The effects go beyond the lost cargo itself. CargoNet noted in a news release that the thefts have “ripple effects including increased insurance costs, delivery delays, replacement orders, and ultimately higher consumer prices.”
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Trucking company Landstar System, which has a wholly owned insurance subsidiary servicing owner-operators, recently reported that its Q2 insurance and claims costs increased $3.2 million YoY to $30.4 million. The heightened costs were due to “increased severity of trucking accidents [and] cargo claims primarily due to strategic cargo theft,” CFO Jim Todd told investors on an earnings call.
Fighting fire with fire. Companies are beefing up their theft and fraud prevention capabilities.
Wabash, a manufacturer of semi trailers and truck bodies, acquired a cargo security technology firm earlier this year to “address the increasing demand” for freight security tools, according to a company news release. Logistics software company Descartes made a similar move last September when it acquired a carrier onboarding and risk monitoring company for $24 million.
As for Landstar, it’s “investing significantly” to combat theft and fraud, according to Matt Miller, its chief safety and operations officer. It created a fraud department and is “continuing to add people” with subject-matter expertise to the department, Miller said on Landstar’s Q1 earnings call in May.
The trucking company is also investing in technology to combat the threat. It’s using solutions from “various vendors that are helping us attack on all fronts, whether it’s people, education, or technology,” Miller told investors at the time. “But this is an area where you’ve got to remain vigilant and you’re really always playing defense here.”
How to shore up your own fences: CargoNet’s Lewis recommended that organizations combating theft and fraud get creative and hire people with experience outside the logistics sector.
“I’d start looking at hiring a different generation of folks that maybe came out of the banking industry or the credit card industry that focused solely on fraud,” and who are good at identifying “indicators” of fraudulent activities, he said.
Organizations can’t control what method thieves will latch onto next, Travelers’ Cornell said. He said that, instead of focusing on the criminals, organizations should ask themselves, “How do we prepare?...How do you work to make sure that you’re a harder target than the thieves really want to spend time [trying] to get through?”
Correction 08/06/2025: This piece has been corrected to reflect the host of the webinar.