Cargo theft is becoming a growing concern, reaching alarming levels this year. With the long Memorial Day holiday approaching, experts predict that the problem could escalate even further. A monitoring company called CargoNet, which is a Verisk business, has issued a warning to supply chain professionals, advising them to be on high alert. The reason behind this alert is that cargo thieves are expected to take advantage of extended business closures during the holiday.

CargoNet has been closely monitoring the situation, and their findings are concerning. In the first 20 weeks of 2023, they have received more than 900 reports of theft, fraud, and other criminal activities in the supply chain. This marks a significant 41% increase compared to the same period in 2022. Since November 2022, CargoNet has observed a sharp rise in sophisticated shipment misdirection fraud schemes across the United States. These schemes involve highly technical methods used by criminals to redirect shipments and deceive supply chain processes.

Of particular concern are fictitious pickup and fraud complaints, which have seen a staggering 675% increase in the first 20 weeks of 2023 compared to the same period in the previous year, 2022. This indicates that criminals are becoming more brazen and creative in their attempts to exploit vulnerabilities in the supply chain.

Given these statistics, it is crucial for supply chain professionals to remain vigilant and take proactive measures to safeguard their cargo during the upcoming Memorial Day holiday. Increased security measures, such as enhanced monitoring systems, stricter access controls, and heightened communication with law enforcement, may help deter potential thefts and mitigate risks.

CargoNet’s warning serves as a reminder that cargo theft continues to pose a significant threat to the supply chain industry. By staying informed and implementing robust security protocols, professionals can better protect their valuable assets and ensure the smooth flow of goods.

Misdirection fraud, a prevalent form of cargo theft, has primarily occurred in California, although there have been instances where shipments from other states were also redirected to California. Southern California has emerged as a hotspot for fictitious pickup groups engaged in this criminal activity. These groups have exhibited a preference for targeting specific types of shipments, including non-alcoholic beverages such as soda and energy drinks, alcoholic beverages, solar panels, and various vehicle accessories like batteries, motor oils, tires, and auto parts.

CargoNet’s findings also shed light on the timing patterns associated with fictitious pickups. According to their data, Monday and Friday were the most common days for these fraudulent incidents to occur. It appears that criminals strategically choose the beginning and end of the workweek to exploit potential vulnerabilities in supply chain operations.

This information emphasizes the need for heightened security measures, particularly in California and the Southern California region. Businesses operating in the affected industries should exercise caution and implement additional safeguards to protect their shipments. By being aware of these patterns and taking appropriate preventive measures, supply chain professionals can better safeguard their cargo and reduce the risk of falling victim to misdirection fraud.

Industry professionals should be on high alert for unauthorized attempts to misdirect shipments from the intended receiver. CargoNet said before accepting a bid on a shipment, logistics brokers should consider enhanced carrier qualification practices including:

  • verifying with the registered FMCSA phone number or email
  • monitoring FMCSA SAFER for recent MCS-150 form updates, which may indicate unauthorized changes to a motor carrier’s contact information
  • checking for established, positive load history.

Shippers should also consider enhancing sign-in procedures to capture vital information about the truck and driver picking up a shipment.

CargoNet is also concerned about heightened trailer burglary and full trailer theft activity in the Eastern half of the United States, including:

  • Full trailer theft activity from organized cargo theft groups from South Florida that surveil warehouses across the Eastern seaboard or Midwest and follow outbound shipments until the driver leaves the trailer unattended
  • Full trailer theft activity in the Dallas-Fort Worth Metropolitan Area
  • Trailer burglary in the Chicagoland area, especially around Bolingbrook, Illinois
  • Trailer burglary and full trailer theft activity in the Atlanta Metropolitan Area.
  • Trailer burglary and full trailer theft activity in Philadelphia

CargoNet warns again that current supply chain crime activity exceeds the previous 10 years when comparing the first 20 weeks of each year.