Truckers face rising cargo theft as online scams sweep freight industry
Online cargo theft affecting the freight transportation industry
The American trucking industry moves nearly three-quarters of the freight across the U.S. Unfortunately, thieves and fraudsters are entering the supply chain. We provide the industry with a profit of 19 million dollars every day.
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SAN ANTONIO, Texas – With the holiday season starting, freight trucking experts say cargo theft will increase once again as more products hit the road.
July 2nd Quarter report Data from CargoNet, a national information-sharing system that tracks cargo theft, shows a 13% increase in cargo theft compared to the same period in 2024.
Good old-fashioned cargo theft is still happening, and a San Antonio-based shipping company has some experience with it.
“Before 2020, these were more outright thefts,” said Adam Blanchard, co-founder of Double Diamond Transport and Tanager Logistics. “They were going in, cutting the seals, and taking the cargo out.”
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When this cargo truck is stopped, the driver is unaware that criminals have stolen the cargo from his truck. (Verisk CargoNet)
Online parcel theft has skyrocketed since the pandemic, increasing by 1,500% in the last four years. trucking.org.
Keith Lewis, CargoNet’s VP of Operations, said he noticed an increase in online theft right after 2020 and “the bad guys realized they could work from anywhere in the world and control the load.”
These scammers are now delving into every aspect of the trucking industry.
“They stole my freight forwarder identity to pick up cargo from other companies and tender it out to legitimate motor carriers, and I started getting legitimate trucking companies reaching out to me demanding payment for shipping that didn’t belong to me,” Blanchard said.
Blanchard tracked the scammers to Eastern Europe and found them stealing loads of energy drinks. The business partner called the fake logistics company, but legal action was never taken.
The fraudsters’ robbery tarnished Blanchard’s reputation, and business insurance rates have doubled this year due to a rise in theft claims.
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Shipping business owner Adam Blanchard said many stolen goods were sent to fake warehouses. (FOX News)
“This is a much more technology-driven situation by multinationals operating in Eastern Europe and Russia. They’re actually getting into the big bill, they’re looking for the expensive type of freight,” American Trucking Association (ATA) CEO Chris Spear told FOX.
So what happens if a truckload of products is stolen by a global fraudster?
“They’re going to steal this cargo, put it in containers as far as we know, a lot of it is going to the Los Angeles area and they’re going to ship it to other countries,” Blanchard said.
CargoNet’s Lewis said sometimes shipping companies don’t realize a load of goods has been stolen until weeks, months, or even a year later.
“The problem is we don’t have mandatory reporting, so a lot of this goes unreported,” he said.
So far this year, California, Texas and Illinois are in the top three for cargo theft, representing 53% of all cargo thefts nationwide. The most important products targeted are food and beverages and household goods.
ATA says cargo theft is a $19 million-a-day hit truck industry.
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According to CargoNet, California, Texas and Illinois are the top three states in the United States for cargo theft. (FOX News)
The freight industry is calling on lawmakers to pass the Organized Retail Crime Combating Act (CORCA). ATA said the bill would “provide a unified framework for law enforcement and the fight against industry. Not only will it create an overdue task force to pursue these criminal gangs, it will also create a much-needed national cargo theft database.”
Blanchard He testified to Congress Along with other industry leaders in February.
“This is the crux of the matter. There is no law enforcement agency focused on this issue,” Blanchard said. “Until we pass legislation at the federal level that would establish a federal law enforcement coalition that would begin to investigate these crimes and actually conduct arrests and prosecutions, this [is] “It’s just going to keep getting worse.”
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Blanchard said theft will affect every part of the business, meaning it may have to raise prices, ultimately leading to higher prices for shoppers.
“When they see products not reaching the shelves, it means there’s a shortage,” Spear said. “The cost is increasing. It’s a reflection of how much you and I and everyone else pays for the things we want and need.”
