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All cargo crime has the potential to cause both reputational and financial damage. However, not all types of cargo theft are carried out the same way. Strategic theft, straight theft, and large scale/organized pilferage are the three most common theft methods. Preventing cargo theft and improving security requires a nuanced understanding of each.
Strategic cargo theft
Strategic cargo theft, as the name suggests, is a strategic approach to stealing goods. Also called theft by deception or theft by fraud, strategic theft often involves insider knowledge and trickery. The targets of strategic theft are specifically chosen, as opposed to being randomly attacked. They tend to ship high-value goods and/or have poor security protocols, which makes the goods easier to steal and more worthwhile to sell.
Typically, strategic theft involves the infiltration of targeted shippers. Bad actors will pretend to be legitimate operators, with no criminal activity. They will then gather intelligence on shipping and receiving procedures and paperwork, as well as penetration testing security programs. Senior crime members will then determine which individual strategies to implement.
The drivers involved in these thefts often consist of a “revolving door” of personnel. If they come from overseas, they’ll often cycle in and out of the country as their identities are burned. Handlers (the crime equivalent of “middle managers”) will then store merchandise for future distribution. Finally, “Fencers” will arrange sales, usually to specialist wholesalers, but sometimes directly to consumers.
Unfortunately, foreign-based organizations are often involved with drug or human trafficking, and worse. Additionally, local-based crews frequently funnel money to cartels and other organized crime entities. Thus, there is usually a larger, more horrifying strategy at play outside of the initial theft.
Strategic theft subcategories
Fictitious pick-ups are often considered the oldest version of strategic theft. This MO involves criminals employing fictitious paperwork or using tactics like social engineering to obtain information about a company. They’ll then pose as legitimate drivers and carriers who are scheduled to pick up a shipment.
Another type of strategic theft is double brokering. In this scam, a criminal will obtain the rights to a shipment and then pretend to be the broker they just obtained the shipment from. The thieves will then “re-broker” the shipment to a legitimate carrier, who is unaware of what’s going on. Some criminals will register multiple carrier and broker identities at once, thus enabling them to pull off several of these thefts simultaneously.
Straight cargo theft
Straight theft is considered the most “traditional” type of theft. In the past, these thieves most frequently targeted specialty wholesalers, but recently, they’ve been focusing on specific brands based on consumer interests. Typically, they’ll target loads when they’re left unattended, taking advantage of lackluster security to get in and out of a tractor before they’re noticed. However, just like with strategic theft, straight theft can take on several forms.
Types of straight theft
Sometimes, thieves will simply enter an unlocked vehicle, pilfer small amounts of a shipment, and hope they go unnoticed. Other times, thieves will commit a “smash and grab” in which they damage the tractor-trailer in order to access and steal its cargo. In both instances, they’ll usually wait at truck stops, parking lots, or other high-traction areas until they find a mark.
Some straight thefts can also take place in moving vehicles. This doesn’t often happen with trucks, but it can be an issue when it comes to rail theft. In these cases, thieves will lie in wait at railroads until a slow-moving freight train goes through. They’ll then board the train, steal the cargo, and hand it over to other thieves in a getaway vehicle before disembarking and joining them.
Large scale and organized pilferage
Large scale and organized pilferage is an interesting type of cargo theft, as it doesn’t follow any one business model. Sometimes, the thieves will commit opportunistic crimes, while other times, they’ll target specific commodity types or pick shipments based on consumer demand.
Insider knowledge is usually critical in order to pull off this type of theft. Said information is used to help criminals exploit routine operations and security vulnerabilities. Additionally, this type of theft usually involves several smaller theft events. In other words, the criminals will only steal a small amount from the shipments each time, and these stolen goods will add up over the long run.
Large scale and organized pilferage can also be especially difficult to detect. In cases of strategic theft, detection rarely happens right away, but once the load fails to arrive or the real carrier shows up, it becomes obvious that something is wrong. Similarly, with straight theft, the carrier will quickly notice his goods are missing when he opens his trailer. However, with large scale and organized pilferage, the effect is so small, at first, that it usually takes many shipments before someone notices the lost goods.
Like with strategic theft, large scale and organized pilferages typically have an additional, nefarious goal outside of stealing cargo. Rural crews often funnel money back to LatAm cartels, while metro area crews often feed into local violent crime. In turn, their criminal groups grow stronger, and future thefts become even easier and more widespread.
Cargo theft prevention for the three most common types of cargo theft
The three types of cargo theft above vary in terms of MOs, targets, and complexity. This can make theft prevention feel overwhelming, as many shippers assume that each theft type requires distinct security tools. While it’s true that certain protocols and technologies are better at stopping specific theft types, a few foundational cargo security tools are instrumental in preventing all three.
Visibility, intelligence, and risk monitoring are the three fundamental tools to help stop the three most common theft methods. Visibility enables real-time insights into your shipment’s location, your products’ status, and your carrier’s ETA. In turn, Intelligence as a Service provides a more refined understanding of your shipments’ unique risks based on everything from location to product type. Add to this risk monitoring tools like RiskGPT, and you’re able to identify and respond to risk the moment it happens.
This is just the start of Overhaul’s theft prevention tools. We also offer insurance to protect you financially in worst-case loss scenarios. And when a cargo theft occurs, Overhaul works with local law enforcement agencies to help recover stolen cargo. In short, we’re the holistic solution for all companies against all theft types—both now and in the future.
While the thefts above are currently the most common methods, cargo crime is becoming increasingly more sophisticated. AI, blockchain, and various other technologies will continue to play a greater role. This is why it’s important that you work with a provider who always has one eye on the future. At Overhaul, we’re not just prepared for the now, but also what’s ahead.
The supply chain is rife with theft, from the food and beverage industry to pharma and retail. Whether you’re concerned about strategic theft, straight theft, large scale and organized pilferage, or other thefts to come, Overhaul is here to help you prepare. Read more about our scalable solutions and reach out today for a free demo.
