Reports indicate that organized crime groups are adopting new and troubling tactics to target freight trucks, trains, and warehouses nationwide at an unprecedented pace.
These criminals are hacking into supply chain technologies, posing as legitimate shipping companies, according to a recent six-month survey by CNBC.
Data from Verisk Cargonet reveals that there were 3,798 reported theft incidents in 2024, which seems oddly unchanging from the previous year.
Last year’s losses in the U.S. supply chain amounted to about $455 million, but some industry experts believe the actual figure could exceed $1 billion annually, as many thefts go unreported.
“Every day, we see attempts to breach our systems, and it really keeps our sales team on high alert,” shared Jerry Jacobs, who manages risk at a logistics firm in Atlanta.
He often reminds his team that they might be speaking with someone trying to steal cargo almost one-third of the time.
Just last December, there was a notable case involving a theft that netted over $1 million in holiday merchandise.
In another incident, a London-based company named Flycatcher lost 12,600 toy projectors after mistakenly trusting two brokers who were actually con artists impersonating legitimate businesses.
This rise in identity theft has become concerning, jumping from 8% of cargo thefts in 2020 to nearly a third by the end of 2024.
According to Verisk Cargonet, criminal networks in at least 32 countries are linked to these fraudulent activities.
Industry brokers usually utilize an online portal called Dat Freight and Analytics for resolving delivery issues, as noted by CNBC.
Jacobs demonstrated the platform, revealing a list his company allegedly created, which he claimed was actually compiled by a scammer.
Birger Buesching, who leads the supply chain for Philips’ personal health products, remarked on the clear uptick in problems, noting that just a couple of years ago, concerns like these were far less pressing.
Although larger companies often fall prey to these crime rings, they frequently choose not to report the incidents or discuss them publicly.
“In many cases, businesses don’t report theft because they feel they won’t recover the losses,” explained Barry Conlon, CEO of a risk management firm, emphasizing the timeline involved in these situations.
Recently, police in Los Angeles discovered five boxes of stolen Lacoste footwear during an investigation.
Lululemon also reported a robbery at its California distribution center in May, where crooks escaped with over $1 million worth of products.
The ramifications of cargo theft are beginning to trickle down to consumers, as retailers struggle to adjust prices and maintain inventory levels.
“If you want a particular shirt and there are only a few left—some of which have been redirected elsewhere—it’s possible that it won’t be available when you check,” one expert explained.
Lululemon mentioned that it is actively addressing retail crime through coordinated investigations that have led to some recoveries.
In these intricate schemes, hackers might alter company contact details on the Federal Motor Carrier Safety Administration’s site, where shippers register.
An FMCSA representative noted that the agency is upgrading its registration systems to better enhance security measures.
Shipping companies are investing heavily in enhanced security systems to tackle this growing issue.
Additionally, several laws are being proposed to counter these rising criminal tactics.
In April, California Representative David Valadao, alongside other lawmakers, introduced the Combat Organized Crime Act, aiming to establish a Coordination Center within the Department of Homeland Security focused on retail crimes, including cargo theft. This legislation is currently pending.
Moreover, a bipartisan bill in the Senate, known as the Household Goods Transport Consumer Protection Act, would empower the FMCSA to impose serious penalties and stricter regulations on offenders.
