You’ve undoubtedly heard the horror stories if you’ve worked in the freight industry. Loads that disappear. Brokers that aren’t real. Carriers that ghost. According to the Transportation Intermediaries Association (TIA), fraud-related losses in trucking exceeded $800 million in 2023, and that number keeps climbing.
Unfortunately, organized crime is becoming tech-savvy (no, nothing to uphold the reputation of Fast and Furious, but still) targeting the weak links in your systems. They can even falsify the credentials and make it look legitimate, scamming millions out of your system.
Such incidents of cargo theft not only cost time and money, it disrupt your business and customers’ trust too.
To help you retain your customers and ensure that your dispatch and planning are not affected, we have highlighted the major threats you need to be aware of. You will also explore the measures you can take in case freight fraud happens to you.
Cargo theft and freight fraud in the U.S. trucking industry
CargoNet, a freight security network, reported a notable rise in theft events in Q4 2024 compared to the previous year. A record 776 cargo theft incidents occurred in the U.S. and Canada in Q3 2024. Compared to the third quarter of the previous year, this indicates a 14% increase. In the third quarter of 2024, the total value of stolen products was well above $39 million.
Fleets of all sizes are susceptible to theft, even though cargo thieves often target larger freight and vehicles. Truck stops, warehouses, and distribution hubs are also frequently attacked.
Protecting your assets against theft should therefore be a top priority, regardless of whether you run a delivery service, transportation firm, or any other business that depends on moving items.
Types of freight fraud and theft
The modern transportation industry these days is experiencing cargo theft and freight fraud in the following ways:
1. Leaked operations
The term “leakage” describes the methodical and gradual removal of commodities from shipments by criminals. Leakage operations aim to keep companies unaware that anything is missing. Although this might not seem like much, leakage will eventually result in significant losses. Not to mention that crooks will continue to take advantage of a corporation if they discover it is a simple target.
2. Fake truck drivers and pickups
A criminal must pose as a motorist who is permitted to pick up freight in order to commit cargo theft. Once goods are passed off to the wrong person, it’s nearly impossible to recover. In order to verify that a driver is who they claim to be, this technique may entail staff submitting fictitious documentation or failing to follow the process.
3. Hijakcings
When a driver takes a break and leaves the truck unattended, a burglar grabs the entire vehicle full of products. This is known as cargo theft. A truck may be traced from the point of departure and robbed at its first stop, or this may be opportunistic. Trucks should therefore avoid stopping for the first 200 miles or four hours after they start.
4. Pilferage
Occasionally, cargo robbers will take individual items from larger loads or small amounts of goods instead of taking a complete truckload (FTL) or less-than-truckload (LTL) shipment. Freight fraud of this kind frequently goes undetected or unrecognized, which over time may result in increasing losses.
Throughout the supply chain, theft can happen at warehouses, distribution hubs, and even while a product is being transported. It can be difficult to determine which state the cargo theft occurred in and which law enforcement agency to contact if drivers don’t even detect it until much later.
5. Digital/Cyber theft
Exploiting weaknesses in digital systems and communication networks is known as cyber theft. To obtain shipping data, hackers may use dishonest strategies like phishing assaults and data breaches.
They then use this information to plan frauds such as bogus pickups, which involve pretending to be drivers for reputable carriers to pick up loads and steal them, or double brokering.
6. Straight theft
Straight theft is still a possibility, in which goods are taken physically from a place where they are stored. Anything that can be swiftly stolen and sold is what cargo thieves are searching for. Think truck stops, parking lots, roadside parking, drop lots, and other areas where cargo could be left unattended, especially in store parking lots or empty lots on weekends.
7. Strategic freight theft
Theft that employs dishonest tactics, or strategic cargo theft, is still developing. Unconventional techniques, such as deception and false information, may be used in this kind of cargo theft to fool shippers, brokers, and carriers into giving the consignment to the thieves rather than the authorized carrier.
Identity theft, fake pick-ups, double brokering schemes, and fraudulent carriers are among the trends, as are hybrid combinations of these techniques that are employed to further muddle matters.
8. Tech theft
“Sniffers,” which are tools that assist in detecting hidden GPS technology, including that which is installed in a trailer, are being used by certain cargo robbers. When a device is identified, the technology is blocked using a GPS jammer, preventing law enforcement from using it to track down stolen items. Others set up stolen loads in a parking lot right after the theft to see if the police would come to look for them.
The most common stolen goods in cargo theft
While there are specific targets in cargo theft, goods are a common target for freight fraud. Some of the frequently stolen goods include:
Food and beverage
Almost 32% of the cargo theft occurs in this category. Reason? A large volume of perishable and non-perishable goods is transported across the country daily. And these trucks are not highly secured either, making them an easy target. Because there is a large market for food sales, cargo thieves will profit from selling food items.
Electronics
Why do criminals covet electronics? Well, electronic items are expensive and sell in high demand. Almost 22% of the cargo theft happens because small electronics are an easy target. This is a lot common during the holiday season.
Alcohol and tobacco products
Although the number is not high, even if 10% of the total cargo theft gets stolen consisting of alcohol and tobacco products. Because these products are also transported in large volumes, it creates a high demand in the market where criminals can sell these goods.
When is cargo theft most likely to happen
Cargo theft is most likely to occur under different circumstances, like conditions of time, location, and vulnerability.
| Freight agent | |
|---|---|
|
Weekend and holidays |
Freight is most vulnerable during the holiday seasons. Facilities are closed, and freight is often unattended. Or long weekends can be a contributing factor to prime theft. |
|
First stop after departure |
Organized the freight rings, tail trucks, and strike usually within the first 200 miles or 4 hours of departure. |
|
Late nights or early mornings |
Between midnight and 5 a.m., visibility is often low, which is why the risk of theft increases.
|
|
During layovers
|
If loads are left unattended in unsecured yards and parking lots, drivers become a prime target when their shift is about to be over. |
|
Poorly lit truck stops |
Southern California, Texas, Georgia, and Florida are high-risk freight corridors. So if the truck stop is unsecured or poorly lit, then it’s a high-risk location for freight theft. |
Guaranteed ways to prevent cargo theft using technology
Modern fleets need digital armor, which means implementing smart and secure digital tools is a guaranteed way to reduce the number of freight scams. The right tech stack, such as TMS, offers a proactive and data-driven approach to prevent cargo theft.
Using a transportation management system
Your digital stronghold is a contemporary TMS. It consolidates real-time visibility, compliance, carrier vetting, and routing onto a single platform. It helps stop freight broker scams, identify TMS network scams, and stop risks before they get out of hand by automating procedures and identifying red flags early.
Important characteristics of a credible TMS include:
- Real-time load tracking:
Track a car’s location in real time and get notifications if it stops without permission or deviates from the intended path. - Geo-fencing:
In order to avoid early-stage truck cargo theft, geofencing—the creation of digital perimeters to enforce “no-stop zones” within the first 200 miles—is essential. - Carrier onboarding tools: Avoid freight broker fraud and impersonators by quickly verifying MC and DOT numbers, insurance status, and authority.
- Centralized visibility:
Avoid data silos that could be used in phishing or scams using the TMS network.
Geofencing and real-time load tracking
The first few hours after departure are the most dangerous for cargo, particularly at rest areas and unguarded parking lots. Fleet managers are notified in real-time if a vehicle stops suddenly, deviates from the intended path, or loses signal.
Another line of defense is provided by geofencing. Establishing virtual borders allows you to:
- Stop trucks from stopping in places where theft is common.
- Check for cargo rerouting.
- Shorten the time it takes to notice and respond to incidents.
Online identity and document security
Identity theft and falsified documentation are at the heart of a large portion of freight fraud nowadays. Technology removes uncertainty through the use of:
- Verification of digital documents (e.g., e-signatures and secure portals),
- Access restrictions that limit authorized users’ access to sensitive data,
- Audit trails for load assignments and carrier communication.
These tools make it significantly harder for scammers to impersonate brokers, tamper with rate confirmations, or divert loads.
AI-driven anomaly detection
Machine learning is used by sophisticated TMS platforms to track load progress, driver behavior, and communication trends. The technology immediately flags a truck that exhibits unusual activity, veers off course, or idles for an extended period.
These notifications lessen the impact of possible cargo theft or transportation scams by enabling dispatchers to step in before things get out of hand.
Automated compliance checks
Following DOT, ELD, and FMCSA rules adds an extra degree of security in addition to preventing fines. A properly configured TMS guarantees:
- Loads are only given to carriers who comply.
- Vehicle inspections and driver credentials are current.
- Documentation for loads is tamper-proof and encrypted.
This improves your security against both cargo theft and trucking company fraud and lessens the likelihood that fraud will sneak through administrative gaps.
Let LoadStop handle the risks for you
With features purpose-built for cargo theft prevention and fraud detection, LoadStop ensures that your fleets are secure.
Your cargo will remain on course and away from high-risk locations thanks to features like geofencing and real-time load tracking. While AI-powered anomaly detection highlights questionable activity before it results in loss, carrier and broker verification solutions aid in the removal of imposters and rogue actors.
You can keep a close eye on the freight fraud and scams using LoadStop. If you get suspicious of any activity, you are instantly notified. Easily monitor the load assignments, get it logged in, tracked, and audit-ready!
Reduce cost. Drive smarter. And take control of your fleet.
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A typical system consists of a cloud-based platform, driver monitoring tools, car diagnostic sensors, and a GPS tracking device.
Telematics increases driver safety, lowers operating expenses, boosts fuel economy, and aids in maintaining regulatory compliance.
Of course. Modern transportation management systems (TMS) like LoadStop can easily integrate with most truck telematics software, giving you unified control over your operations.