USE RISK ASSESSMENT AND DATA ANALYTICS. Risk assessment tools and analytics play a key role in identifying vulnerabilities. “We use data-driven decisionmaking to preemptively mitigate risks and adjust protocols based on the latest threat intelligence,” Healy says. CONDUCT STAFF TRAINING. Train every team member in security protocols and potential fraud signals. “Even one misstep can create an entry point for fraud,” Healy says. Additionally, “shippers and transportation partners can support each other by training employees using the latest resources and best practices, and asking challenging questions to stay informed,” Sandager says. COMMUNICATE EARLY AND OFTEN. “If unusual activity is detected, it’s important to promptly escalate the issue, internally or with external partners,” Sandager says. “Fast response times can enhance the outcomes and help prevent potential losses.” CONNECT TO LAW ENFORCEMENT. “Whether you are a large or small business, tap into local law enforcement,” Jonkman says. “You might have a theft ring in your area.” COLLABORATIVE EFFORTS Mitigating cargo theft and fraud demands proactive, collaborative endeavors across the entire supply chain. “No single entity can tackle cargo theft alone; it requires ongoing partnership with law enforcement, regulatory bodies, and supply chain stakeholders to foster an organizational culture of vigilance,” Healy says. It also means evolving security practices based on current industry trends. “Our strategy starts by staying informed about modern theft methods, targeted goods, and high-risk areas,” Sandager says. “We regularly optimize our prevention processes, technology, and insurance to mitigate risk. “Organizations must stay active against bad actors who consistently innovate their methods of identifying and exploiting businesses’ vulnerabilities to commit crimes,” he adds. n
“Those subject matter experts should be accessible for employees to lean on for questions, as educating employees about the increasing threat of theft can empower them to recognize and report suspicious activity,” Sandager notes. “An informed team that is part of a culture that recognizes and rewards loss prevention is a basic strategy any transportation company can take,” he adds. “Once you have a strong knowledge base, pay it forward to others
“Customers expect reliability and a single incident of cargo theft can strain relationships, reduce trust, and ultimately harm future business opportunities.”
outside your organization.” ENHANCE VERIFICATION PROTOCOLS. Verifying carrier credentials, real-time tracking, and rigorous validation processes are essential.
“Perform background checks to verify your carriers’ credentials,” Jonkman says. For example, take photos of every driver’s license, the logos on their trailer, MC/ DOT number, and license plates. AUDIT AND UPDATE PROCESSES. General awareness goes a long way, but it’s also critical to thoroughly and regularly audit your operations to identify and address vulnerabilities. Every organization responsible for transporting goods should consistently review internal processes surrounding carrier vetting, onboarding, transit safety, and information security. “As fraudsters update their methods, we need to update ours,” Jenner says. “Red ags include changes in FMCSA information or MCS-150 within the past six months.” LEVERAGE DATA. Use data to pinpoint weaknesses and take proactive measures to help fortify your defenses. Track your progress; if you have success, help strengthen the industry by sharing your best practices with your partners and even your competitors. “The fewer entry points for malicious behavior across transportation, the higher the likelihood of combating strategic cargo theft as a sector,” Sandager says. BOOST CYBERSECURITY MEASURES. Cybersecurity is indispensable. Regular audits, phishing training, and secure communication channels are essential to minimize digital risk.
—Steve Healy CeO COReX lOgiStiCS
CONTROL CHAIN OF CUSTODY. From origin to destination, strict chain of custody and access controls are paramount. By utilizing tamper-evident seals, GPS tracking, and secure storage locations, shippers can reduce the risk of theft. BUILD STRONG STRATEGIC PARTNERSHIPS. Partnering with service providers is essential for fraud prevention. “Creating a safer shipping landscape requires a joint effort among brokers, shippers, and carriers,” Sandager says. “In a somewhat fragmented industry, fostering communication and knowledge sharing among stakeholders is crucial.” The rst steps toward building these relationships include collaborating on prevention and mitigation strategies, ensuring insurance and compliance measures are current, and maintaining open communication about potential threats as they arise. “Providers such as CargoNet, Overhaul, Highway, MyCarrier Portal, and Carrier 411 are there to help shippers with their vetting processes and are instrumental in detecting bad actors,” Jenner says.
116 Inbound Logistics • January 2025
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