Incident: Dramatic Increase in Fraudulent Activity 

The logistics industry is facing an alarming increase in fraudulent activity in the Midwest, specifically in the theft of high-value cargo. Overhaul has recently learned that multiple crews and organizations are employing a variety of different tactics to steal freight, ranging from simple theft to more complex schemes involving false documentation and identity theft. Cost-dense products such as food, liquor, and consumer electronics are at the highest risk. 

What’s more concerning is that a crew practicing strategic theft in Kentucky and Indiana is not connected to the crews that splintered out of Southern California. This indicates that new actors are entering the game, and more new actors may still enter. As a result, shippers of targeted and high-demand or high-value products must be extremely thorough in vetting brokers and carriers in their network. Additionally, documenting all drivers, tractors, and trailers that arrive to pick up cargo with thorough pictures that include all identifying markings on the tractor/trailer, as well as the driver and their CDL, can help mitigate the risk of cargo theft. 

The frequency and geographic scope of these thefts are rapidly growing, which is particularly concerning for companies that rely on the transportation of high-value goods. The financial impact of cargo theft can be significant, making it crucial for companies to partner with logistics risk management software and services providers like Overhaul. By leveraging our technology and expertise, companies can better protect their valuable cargo and minimize the financial impact of theft. 

The logistics industry must remain vigilant in the face of these growing threats. With new bad actors emerging, it’s more important than ever for companies to take proactive steps to protect their cargo. By partnering with Overhaul and implementing best practices for vetting brokers and carriers and documenting all drivers, tractors, and trailers, companies can mitigate the risk of cargo theft and ensure the safe and secure transportation of their high-value goods. 

Overhaul recommends that shippers of targeted and high demand or high value products employ as many visibility solutions as able, and brief drivers on contextual intelligence as it applies to their route. Additionally, drivers should be on the lookout for suspicious activity, including signs of being followed from origin or signs of surveillance at stop locations. Team drivers should never leave the load unattended, even for a short period of time. If possible, when stopping, the trailer should be parked in a well-lit and visible area, if a solid surface to back up to is not available. Drivers should also maintain communication with dispatch and/or a remote monitoring center when traveling through or stopping in a high-risk area.  

Contextual intelligence, remote compliance monitoring, real time visibility, and an immediate escalation with a path to effective law enforcement engagement are critical to recognizing and recovering stolen cargo.