TAKEAWAYS
CARGO THEFT ON THE RISE
600% Cargo theft, the most prevalent form of fraud, has seen a dramatic increase between November 2022 and March 2023.
43% of survey respondents say unlawful brokerage scams are their primary concern as financial fraud becomes increasingly common.
$402,340 Average gross cost of fraud
98% of survey respondents say truckload freight is the most vulnerable. affecting the entire supply chain— and, ultimately, consumers—as reported by respondents.
California, Texas, Illinois, Georgia, and Florida are identified as having the highest incidents of theft.
Source: The Transportation Intermediaries Association
“AN INDUSTRY UNDER SIEGE” An alarming rise in cargo theft has shippers and trucking
The report highlights these key cargo theft data points: • Truckload freight remains the primary target for fraud, with 98% of respondents identifying it as the most vulnerable mode of transport. • The average gross cost of fraud reported by TIA members stands at approximately $402,340, with an average cost per load of around $40,760. • Certain states, particularly California, Texas, Illinois, Georgia, and Florida, have been identified as hotspots for cargo theft. • The most commonly stolen commodities include electronics, solar panels, and household goods. In addition, as cargo theft becomes increasingly sophisticated, new tactics are emerging. For example, criminals are manipulating motor carrier (MC) numbers, purchasing previously vetted MC numbers to pose as legitimate trucking companies, notes Scott Cornell, transportation lead and crime and theft specialist for Travelers. This allows them to steal multiple loads before being detected. How can shippers combat these growing threats? Cornell recommends the following actions: • Enhanced vetting processes. Freight brokers should implement more rigorous background checks and continuously update carrier information to avoid partnering with potentially compromised carriers. • Improved real-time communication. Establishing better communication channels between shippers and brokers can help share load details promptly, making it harder for thieves to exploit information gaps. • Prioritize thorough checks. Despite the industry’s fast-paced nature, prioritizing detailed checks and verifications can prevent thieves from slipping through the cracks.
providers on edge—and unhappy with existing efforts to combat the surge of fraudulent activity. Cargo theft increased by 33% in the second quarter of 2024 compared to the previous year, finds the Transportation Intermediaries Association’s (TIA) latest report on the state of fraud in the transportation industry. “We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain,” says Anne Reinke, president and CEO of TIA. “When people think of fraud in the supply chain, they only see what is happening to a business; they are not seeing the trickle-down effect to consumers and the economy. Fraud is a multi-million-dollar problem that needs to be addressed today.”
OVERHEARD
“ The holiday season is coming up fast. A focus on value proposition and customer experience is going to be what it takes to win. The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under- invest in their stores. They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.” —Nikki Baird VP of Strategy & Product, Aptos
October 2024 • Inbound Logistics 17
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