Defending Against Trucking Fraud and Cargo Theft
Fraud and cargo theft pose significant challenges in the trucking industry. In 2022 alone, cargo theft increased by 20%, resulting in a staggering $223 million worth of stolen goods. Criminals have become more cunning in their tactics, specifically targeting the supply chain where they can demand ransom to avoid costly downtime. Here are a list of the latest cargo scams and nine practical steps to safeguard your company from scam vulnerabilities.
Common Fraud Schemes in the Cargo Supply Chain:
Stealing the identity of legitimate truckers: Through phishing attacks and online schemes, thieves gain access to registered truckers' identities. By leveraging the identity of a reputable trucker, they execute double broker schemes, deceiving law enforcement and stealing cargo without detection.
Posing as a freight forwarder: Impersonating legitimate entities on freight exchange sites, scammers act as intermediaries. They provide new delivery instructions to unsuspecting truckers, redirecting the cargo to an alternate address for theft upon delivery.
Mitigation Tips to Counter Fictitious Pickups and Cargo Theft:
Be diligent, especially on Fridays: Due to tight shipping deadlines, Fridays are prime targets for thieves. Continuously vet carriers and brokers and ensure verifiable identification to eliminate security gaps.
Verify driver legitimacy: Call the phone number listed on their authority and cross-reference with the associated trucking company while the trucker is still at the loading point.
Utilize data analytics and machine learning: Leverage advanced technologies to detect fraudulent activities and conduct regular security audits.
Implement GPS tracking: Install GPS tracking devices on cargo and trailers to monitor movement from pickup to delivery.
Train employees to identify and report suspicious activities: Foster an open communication culture within your organization to raise awareness and promote prompt reporting.
Establish best business practices: Collaborate with law enforcement, industry associations, and stakeholders to stay informed about fraud trends and preventive measures.
Protecting your business from trucking fraud and cargo theft requires proactive security measures. By incorporating the provided tips, you can mitigate the risks associated with fictitious pickups and safeguard your reputation.
