Everyone involved in the logistics industry can benefit from a reduction in cargo theft. There are many ways to prevent and protect against cargo theft. This guide explains typical schemes and seven tips for cargo theft prevention.
What is cargo theft?
Cargo theft is the criminal act of stealing freight. It includes taking all or part of a load in storage at a facility or transit on any vessel. It also includes cyber crimes that alter the freight or compromise the safe and successful delivery of freight.
Cargo theft is a serious crime that, according to the FBI, is often found to be connected to larger schemes like trafficking, terrorism, and organized crime. In fact, cargo theft has such a significant impact on the United States economy that the Attorney General is required by law to ensure reports of cargo theft are collected at the local, state, and federal levels and reported as a distinct category in the Uniform Crime Reporting System.
What are common cargo theft fraud schemes?
Cargo theft fraud schemes are constantly evolving. It is crucial to keep up to date with the methods and approaches so that you know what to look out for. Here are a few common schemes that are important to understand and recognize.
Straight Theft
Straight theft is probably what most people think of when “cargo theft” comes to mind. In straight theft, freight is stolen from where it is, i.e., truck stops, roadside parking, and drop lots. Straight theft is most likely to occur on weekends and holidays. In straight theft, thieves take advantage of distraction techniques and areas of low visibility. Thieves also look for clues that desirable cargo is on board. For example, temperature gauges may indicate the cargo is valuable pharmaceutical goods.
Strategic Theft
Strategic theft is a more complex and convoluted type of cargo theft. Strategic theft methods continually evolve and commonly involve multiple fraud methods in a single attack. Thieves may generate deceptive information to arrange fake pickups or double brokering schemes. Thieves may also utilize strategies like identity theft to pose as legitimate carriers or receivers.
Cyber Theft
Cyber theft is also a complex and increasingly advancing cargo fraud scheme. Malicious actors use cyber theft to send phishing emails that embed malware and infect a company’s system granting access to sensitive data. Thieves can also
7 Tips for Preventing Cargo Theft
There are a number of ways that shippers and carriers can prevent cargo theft.
1. Reduce Stops
When the truck moves, no one can tamper with the locks or attempt to steal the cargo. Every time a truck stops, it increases the risk of straight cargo theft.
2. Avoid Unsafe Areas
Drivers often park where they can to get some sleep, but knowing that some areas pose a higher risk than others is essential. Look for well-lit rest spots. Avoid parking in illegal spots or in dark, isolated areas.
3. Increase Warehouse Security
Cargo theft can easily occur in a warehouse. Warehouses must be equipped with strict access controls, comprehensive surveillance systems, and trained security personnel. Additionally, adequate lighting, fencing and gates, and alarm systems can add an extra layer of protection. Collaborate with location law enforcement to coordinate efforts to prevent cargo theft and investigate incidents.
4. Increase Digital Security
In today’s interconnected world, digital security is crucial. Logistics stakeholders must implement firewalls, intrusion detection, and intrusion prevention systems to monitor network traffic, control network access, and identify suspicious activities. Sensitive data must be encrypted, and data must be regularly backed up to prevent data loss in the case of a security breach. All software and operating systems must be regularly updated. Team members must have training on digital security best practices.
5. Increase Physical Security
Increasing physical security on trucks is essential to preventing cargo theft. Carriers can install high-quality locking systems on cab doors and cargo compartments. GPS tracking systems can enable real-time monitoring and tracking to respond immediately to suspicious activities and quickly recover stolen vehicles. Trucks can be equipped with alarm systems that attract attention and deter thieves. Trucks can also be equipped with surveillance cameras to deter criminals and capture evidence in the case of a crime.
6. Obtain Proper Training
Everyone must know the signs and seriousness of cargo theft. Empower drivers, warehouse workers, receivers, and other stakeholders in the logistics industry to recognize, prevent, and report cargo theft.
7. Work with a Trusted Logistics Partner
A quality logistics partner will help you take all the necessary steps to prevent cargo theft and provide logistics services with integrity. First Star Logistics is a unique asset-based global brokerage company with over 60 years of experience. We take great pride in meeting the needs of our customers, carriers, brokers, and agents. For our customers, we understand that efficiency, safety, and reliability are crucial. We use fast, cutting-edge technology to ensure a satisfactory experience with our specialized shipping services. We support our carriers with the technology, management, resources, and support they need to ensure safe, on-time delivery for FTL and LTL shipments. We provide our agents and brokers with a dedicated management team and proprietary software that empowers our employees to succeed. To work with First Star Logistics, contact us today!
