Cargo Theft Surge Driven by Fraud and Misdirection Schemes

In recent reports, there has been a significant surge in cargo theft incidents across the US and Canada, particularly involving fraudulent schemes. According to CargoNet, there has been a startling 700% increase in shipment misdirection and fictitious pickups in the second quarter of 2023 compared to the previous year. Keith Lewis, the Vice President of Operations at CargoNet, highlighted the unprecedented nature of these incidents, noting that this emerging trend was first identified towards the end of 2022.

Furthermore, traditional cargo theft incidents have also seen a 57% rise in the US and Canada during the same period, with a total of 582 reported incidents leading to over $44 million in stolen shipments. The average value per theft has also increased to $260,703, with a particular focus on high-value goods by cargo thieves. The rise in fraud schemes is not confined to North America, as Lewis pointed out that it has become a global concern, especially during the pandemic.

He emphasized the growing trend of global crimes due to the ability to operate remotely and the ease of committing organized fraud across multiple borders. These fraudulent activities primarily involve shipping misdirection tactics, where legitimate processes like load boards are exploited to unlawfully acquire cargo by posing as motor carriers or logistics brokers. The stolen shipments are then redirected using legitimate drivers, enabling the fraudsters to successfully carry out the theft.

CargoNet also highlighted a surge in extortion and theft by conversion schemes, predominantly carried out by organized groups in states like Illinois and California. These groups target shipments from logistics brokers and impose excessive fees under various pretexts, capitalizing on the lack of criminal enforcement in such cases. Commonly stolen goods in these incidents include food and beverage products, solar power generation equipment, and vehicle parts such as fluids, oils, and tires.

The increased demand for vehicle parts, driven by the pandemic-related car shortage, has made them prime targets for organized crime groups. This trend has led to a significant rise in vehicle theft rates in Canada, with customs checks at ports struggling to enforce regulations, resulting in increased cargo losses. To mitigate the risks of cargo theft, logistics brokers and shippers are advised to carefully vet shipping bids to ensure that motor carrier and driver details align with the tendered shipment.

CargoNet also suggests that motor carriers exercise caution when handling blind shipments to unfamiliar addresses from new customers. In conclusion, vigilance and industry intelligence are essential to safeguard shipments against theft threats. By leveraging data and alerts provided by organizations like CargoNet, companies can proactively prevent thefts and enhance the security of their cargo during transit.