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Freight brokers in Chicago. (Photo: Jim Allen / FreightWaves)

More anti-fraud technology is available to brokers than ever before

The freight transportation industry is grappling with a surge in cargo theft and fraud, driven by sophisticated criminal tactics exploiting technological advancements. As reported by Verisk CargoNet, cargo theft incidents in North America reached a record 3,625 in 2024, a 27% increase from 2023, with strategic thefts—leveraging technology like load boards—becoming a significant concern. Criminals often purchase motor carrier numbers to perpetrate fraud, targeting high-value goods like electronics and copper. This has prompted brokers, carriers, and shippers to adopt advanced technological countermeasures to enhance security and trust.

Scott Cornell of Travelers highlights the severity of strategic cargo theft, where criminals impersonate legitimate carriers or brokers to steal freight, often through double-brokering scams. These scams involve fraudsters bidding on loads under stolen identities, redirecting shipments to illicit destinations. To combat this, companies like Truckstop have introduced tools such as Risk Factors Advanced for carrier vetting, while DAT Freight & Analytics implemented password-less authentication to prevent identity theft. GenLogs, established in 2023, offers a Freight Intelligence platform with sensor networks and HD cameras to verify truck locations, partnering with Highway to enhance carrier vetting.

The Transportation Intermediaries Association (TIA) emphasizes collaboration, with CEO Chris Burroughs noting that fraud has reached crisis levels since the COVID-19 pandemic. TIA advocates for stronger industry-government partnerships to address enforcement gaps. DAT encourages carriers to maintain updated credentials, such as insurance certificates, to build trust with brokers. Factoring companies like OTR Solutions also play a role by verifying all parties in transactions, reducing fraud risks.

Despite these efforts, challenges persist. Criminals exploit the industry’s rapid digitization, targeting vulnerabilities in automated systems. Regional law enforcement often lacks resources, complicating recovery efforts. The industry is responding with data-sharing initiatives, real-time tracking, and stricter onboarding processes. For instance, DAT’s acquisition of Trucker Tools enhances load verification and tracking capabilities. As freight fraud continues to evolve, stakeholders are urged to combine technology with robust vetting and training to mitigate risks, emphasizing that trust and vigilance are critical in safeguarding the supply chain.

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Freight Fraud Video of the Week 🤩

Kyle Bertin, co-founder and CEO of Two Boxes, speaks about fraud in the returns process and reverse logistics at FreightWaves’ Fraud Fighters event in Dallas.

Exactly how big is cargo theft in the United States?

(Photo: FreightWaves])

Cargo theft has emerged as a critical concern in the U.S. supply chain, drawing attention during a recent Senate Judiciary Committee hearing on organized retail crime (ORC). Published on July 22, 2025, by Supply Chain Dive, the article highlights a shift from store-based thefts like shoplifting to supply chain vulnerabilities, emphasizing the need for federal action amid rising incidents and imprecise data.

Senate Judiciary Committee Chair Chuck Grassley (R-Iowa) opened the hearing by stating, “This threat has evolved to our supply chains, exposing significant vulnerabilities,” referencing a federal indictment of 11 defendants accused of stealing nearly $500,000 worth of Nike shoes from a train.

Lawmakers and witnesses described how these crimes result in substantial losses, impacting businesses, consumers, and even funding domestic and international criminal activities.

Statistics underscore the problem’s scale, though sources vary. Verisk CargoNet reported 3,625 incidents across the U.S. and Canada in 2024, a 27% increase from 2023, occurring at various supply chain points.

David Glawe, president and CEO of the National Insurance Crime Bureau (NICB), testified that cargo theft hit historic highs last year, with losses exceeding $1 billion and projected to rise another 22% in 2025. Donna Lemm, chief strategy officer at IMC Logistics, cited an annual loss of $35 billion, a figure echoed by the American Trucking Associations (ATA) and attributed to the Department of Homeland Security (DHS), though DHS estimates range from $15-35 billion without clear sourcing.

The Association of American Railroads (AAR) estimated over $100 million in costs to major railroads last year.

The National Retail Federation (NRF) deferred to NICB, ATA, AAR, and CargoNet for reliable stats, having rescinded its own ORC figures in 2023 due to inaccuracies. Challenges include inconsistent data collection, which "lack empirical evaluation and utility," per a March study in the Journal of Applied Security Research by Ronald Burns and Charles Crawford. They attribute this to the U.S.’s decentralized law enforcement structure.

To combat this, bipartisan legislation—the Combating Organized Retail Crime Act—was re-introduced in both congressional chambers in April. Sponsored by figures like Grassley and Rep. David Valadao (R-Calif.), it aims to establish a DHS coordination center for information-sharing, investigations, and prosecutions across federal, state, and local levels. The bill seeks to address evolving tactics, such as flash mobs and online sales of stolen goods, which harm retailers, employees, and economies. The article illustrates the issue with imagery of a Union Pacific freight train in Los Angeles amid debris from stolen packages, symbolizing widespread disruption.

While imprecise metrics may hinder efforts, stakeholders urge comprehensive federal intervention to safeguard supply chains and deter criminals.