Thieves target cargo during the holidays

As closed warehouses and unattended trucks fall silent during the holiday season, enterprising thieves are using the opportunity to target these environments, and their hauls are proving quite lucrative.

A study by CargoNet found that supply chain theft increased significantly between Dec. 23 and Jan. 2 for the past five years. There were 176 incidents reported to CargoNet with an average cost of $116,030 for a total loss value of $6,033,572. The top locations targeted were retail parking lots, truck stops and secured yards, and the number of incidents has grown in each successive year.

Several states were theft hotspots: Texas and California each had 31 incidents (18% of losses) and Georgia had 19. Florida and Illinois rounded out the top five states for the thefts.

What are the thieves stealing? A variety of items, but electronics like televisions and computers were the most popular. Other items thieves snatched included household goods, some food and beverage products such as meat and seafood, and shipments of tires, motor oil and major appliances are common targets.

Thieves pose as legitimate drivers

Enterprising thieves will also pose as legitimate truck drivers to unsuspecting logistics brokers and bid on truckload shipments for items such as solar panels, car parts, electronics and home appliances. Understanding that shipping volumes for these items increase around the holidays and that shippers may be more willing to overlook some discrepancies in credentials or skip compliance checks, these fraudulent drivers will try to book shipments right before a holiday.

If a fraudulent delivery bid is accepted, the thieves will misdirect the shipment so it ultimately ends up in their custody. CargoNet says that few misdirected shipments are recovered and it can take several weeks to even determine that the shipment has been lost since the fraudsters will provide fake proof of delivery documents.

Among some of the items stolen in previous years were:

• $507,105 worth of tequila
• $500,000 worth of footwear
• $440,000 worth of apparel
• $400,000 worth of mattresses

Fraud red flags & security tips

Companies hiring haulers should watch for possible red flags and take adequate security precautions for their cargo. Among these are:

• Utilize a vetting process for end-of-day transactions to help prevent theft.
• Beware of truckers willing to take an undesirable load for a price less than the industry standard. This could be a set-up for theft.
• Fraudulent fuel advance requests, hostage load and line haul scams tend to increase around the holidays. Confirm a load was indeed picked up before issuing a fuel advance.
• Verify accurate license plate, VIN and vehicle descriptions for tractors, trailers and container chassis. This information will be critical if the load is stolen or lost.
• Secure trailers and unattached trailers with hardened padlocks.
• Avoid leaving loaded trailers unattended.
• Utilize high-security locking devices.
• Don’t treat alarms as false alarms. Thieves may trip warehouse alarms multiple times before breaking in.
• Remove keys from equipment in warehouses and secure them in a safe place.

While theft is often a crime of opportunity, cargo thieves know the holidays provide a better chance of success than other times of the year, but implementing some practical safeguards can minimize loss risks.

 Related:

Cargo thieves don’t take Labor Day weekends off

Embedded insurance & managing risk in just-in-time supply chains

Electronics, baby formula at risk of cargo theft this Memorial Day weekend