With the busy holiday season approaching, new data shows that cargo theft numbers continue to surpass those from the previous year.
According to CargoNet – a Jersey City, N.J.-based data- and information-sharing company – a total of 776 thefts occurred in the third quarter of the year, marking an increase of 14% when compared to the third quarter of 2023.
The company reported that over that span, the total value of stolen freight exceeded $39 million. While the data does show a slight decline from the second quarter of 2024 – around 1.6% – CargoNet said it expected that gap to close with “delayed reporting.”
In its report, the company noted a shift in the types of loads being targeted by cargo thieves in the third quarter, with footwear, computers, high-end audio systems and hard liquor being the most sought-after freight. Conversely, CargoNet said that solar panels, motor oils and energy drinks saw a decline in targeted theft over the three-month window.
In terms of where cargo theft was at its highest, California, Illinois and Texas accounted for 52% of all thefts in the third quarter of 2024. The same three states were atop that list in the second quarter, as well, with 57% of all reported thefts occurring within their borders.
According to the company, organized crime rings are one of the main contributors to the record rise in cargo theft.
“The primary drivers of cargo theft continue to be organized crime groups specializing in strategic forms of cargo theft that typically involve some form of document fraud, identity theft and intent to steal the property they are being entrusted to transport,” CargoNet said in its report.
One of the ways these groups pull this off, according to CargoNet, is through sophisticated phishing schemes. The company said crime groups have “intensified efforts” when it comes to gaining unauthorized access to motor carriers’ official email accounts. Once obtained, the groups use the compromised accounts to bid on shipments and bypass compliance checks.
“This method has grown in popularity in response to much of the industry instituting policies that rate confirmation documents should only be sent to official emails,” the company said.
It’s not just the methods of theft that are evolving. CargoNet said that cargo theft crews are also adapting their methods for evading detection.
“Organized crime groups that are stealing part of a shipment or stealing a whole shipment are now switching license plates, driver’s licenses, and truck and trailer numbers between each pickup to combat growing reliance on publicly available FMCSA vehicle inspection data,” the company said. “Multiple pickups are being arranged in multi-day crime sprees, and stolen shipments are being staged at central collection points so that malicious actors can focus on obtaining as many loads as possible before the industry learns of their criminal activity.”
Entering the fourth quarter of 2024, the company said it expects these organized crews to “continue to evolve to evade compliance checks.”
The rise in cargo theft – specifically those crimes perpetrated by organized groups – has gained the attention of lawmakers.
Introduced in June by Rep. David G. Valadao, R-Calif., the Safeguarding our Supply Chains Act aims to improve communication between federal agencies and state and local law enforcement, particularly in regions experiencing “high volumes of organized crime.”
If approved, the legislation would establish the Supply Chain Crime Coordination Center in the Department of Homeland Security’s Homeland Security Investigations to “collect and analyze data related to supply chain fraud and theft” and to share that information with state and local agencies.
Additionally, the bill seeks to create a Supply Chain Fraud and Theft Task Force that would be comprised of “HSI, the FBI and all relevant agencies” working collaboratively to “disrupt and deter organized theft groups that are targeting all stages of the supply chain.”
Since its introduction, 16 co-sponsors have signed on in support of the legislation, including representatives from Arizona, Illinois, Florida, Michigan, Minnesota, Mississippi, Nevada, Tennessee, Texas and Virginia. LL
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