- $1 Billion Lost Yearly as Sophisticated Cargo Scams Escalate.
- Criminals Use Identity Theft and Phishing to Hijack Freight Loads.
- Strategic Cargo Theft Now One-Third of All U.S. Incidents.
Trucks, trains, and warehouses are being targeted by criminals more and more, with billions of dollars’ worth of goods being stolen as cargo theft reaches record levels nationwide, reports CNBC.
A Billion-Dollar Black Market
Cargo thefts jumped 68% last year, said CargoNet, a Verisk subsidiary that monitors supply chain crime. The value of the stolen merchandise exceeded $130 million, although the true figure is probably much greater because so many thefts go unreported.
“The risk has gone way up,” said Scott Cornell, transportation lead and crime and theft specialist at insurance company Travellers. “The value of shipments has gone up. The cost of goods has gone up. So, if you’re shipping something that used to be worth $100,000, now it might be worth $200,000.”
Spots of Carrying Off: From Seaports to Highways
The states most prone to cargo theft include California, Texas, and Florida. Thieves are stealing goods across the spectrum — from sophisticated electronics to such humble items as energy drinks. San Antonio-based truck driver Michael Rangel was the victim of a midday burglary when the full load of Red Bull out of his big rig was carted off in a Houston-area warehouse facility.
“I was shocked,” Rangel said. “I just couldn’t believe it, that someone would be so bold to go to a place of business and take the trailer.” Rangel’s $100,000 load of cargo was stolen by thieves who posed as him. Through the use of forged documentation and stolen identity details, the thieves came early in the morning before his pickup time. They stole away the trailer and its cargo.
A New Type of Holdup: Strategic Theft
The case falls under a trend in “strategic theft,” in which criminals take advantage of technological and logistics networks to carry out fraud. “They are either using identity theft, they’re using fictitious pickups or double brokering scams,” said Travellers’ Cornell. “They’re using that information to insert themselves into the supply chain as if they belong there.”
Fake trucking companies or brokers are created using stolen Department of Transportation numbers or forged paperwork. The goods are picked up by these fake drivers and then disappear. “Now they’re able to do it remotely from across the country,” Cornell said. “They don’t have to be at the location. They don’t have to be right there anymore.”
Old-Fashioned Theft Remains Popular
As technology-based scams are increasing, old-fashioned methods are also still prevalent — such as breaking into overnight-parked trucks or stealing entire trailers from distribution facilities.
Home Depot was the target of a large theft in 2022 when a trailer full of $300,000 worth of power tools was stolen from its warehouse in Georgia. The suspects were eventually apprehended, but not all cases result in recovery.
FBI and Homeland Security Step In
As robberies increase, federal officials are taking action. The FBI and Homeland Security Investigations are engaged in monitoring organised retail crime crews responsible for some of the burglaries. Some of the crews invest the money into other criminal enterprises, such as narcotics and weapons trafficking.
The Price of Insecurity
Truckers like Rangel are left frustrated and financially strained. “That’s how I provide for my family,” he said. “You take my identity, you take my load — and then you’re also taking my reputation.”
His Red Bull shipment was never recovered.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: CNBC
