Cargo thieves are adopting new, sophisticated methods — including the use of fraudulent credentials and compromised U.S. Department of Transportation authorities — to exploit fleets’ vulnerabilities during the holiday season.
Credit and fuel card fraud is on the rise, too, as well as fraud using social media and messaging apps, according to recent findings from Motive and CargoNet. But businesses face even higher risks of cargo theft and fraud during the holiday season.
Motive reported a 49% spike in theft and fraud cases in the first half of 2024 alone. Meanwhile, Keith Lewis, vice-president of operations at CargoNet, said in a news release that the organization has seen a total of 261 reported theft incidents over the past five years between Dec. 23 and Jan. 2, with Dec. 27 and 29 emerging as the most active days.
The average loss per cargo theft in the first half of the year has reached $121,473 (all figures USD), according to Motive. At the same time, CargoNet reports an even higher average of $360,528 during the holiday season, estimating total losses from holiday thefts over the past five years at $29.2 million.
The most targeted states include: California (55 incidents); Texas (36 incidents); and Florida (29 incidents); with key hotspots in Shelby County, Tennessee, and Dallas and San Bernardino counties. Frequently stolen goods include vehicle accessories such as motor oil and tires, electronics like televisions, and alcoholic beverages, CargoNet says.
Criminals exploit vulnerabilities created by holiday closures, reduced staffing, and overstretched compliance resources. Many thefts occur at unsecured warehouses, poorly monitored depots, and truck stops.
Fuel card fraud, social media and messaging apps
The risks, however, extend beyond cargo theft.
While sophisticated fraud schemes are increasing, traditional theft methods — including stolen trailers and full shipment theft — continue to account for the majority of incidents.
Motive’s report highlights a surge in credit card and fuel card fraud, with 44% of business leaders identifying fraud as having a significant financial impact on operations. The company notes that industry leaders estimate 19% of current fleet spend is lost to fraud or theft.
Meanwhile, CargoNet warned of the growing use of social media platforms and messaging apps to access fraudulent credentials.
“What makes this holiday season particularly concerning is the well-established criminal infrastructure supporting these operations,” Lewis said in a release. “Our analysts have witnessed that the commercialization of cargo theft tools has attracted criminal elements from around the world.”
The surge in criminal activity has been particularly dramatic in the U.S., with reported incidents surpassing 2023’s totals by several hundred cases as of Dec.18, 2024. CargoNet says Texas has seen a 36% spike in thefts this year, while California has recorded a 21% increase.
$531 million stolen in Canada since 2019
Cargo, commercial vehicle theft, and fraud remain some of the key challenges for the industry on both sides of the border.
In Canada alone, over the last five years, thefts of trucks, trailers, and cargo loads in Canada have totaled over $531 million in value, with $239 million still unrecovered, according to the cargo and heavy equipment theft trend report published by Équité Association this summer.
The association says the biggest hotspots for cargo theft are Ontario and Quebec, with Mississauga, Brampton, Vaughan, Toronto, and Montreal at the top of the list. Meanwhile, Edmonton, Calgary and Toronto lead the list of key heavy equipment theft hotspots.
While trucks represent the largest share of recoveries, making up 56% and valued at an estimated $180 million, cargo loads constitute about 10% of total recoveries. Those contribute 19% of the overall recovery value, with an average recovery value of approximately $114,000 per load, according to Équité.
Peel Region rivals same theft rates as Texas
In September 2024, TruckNews.com spoke to Mark Haywood, a detective with Peel Regional Police who runs the cargo side of its Commercial Auto Crime Bureau, who said cargo theft in the Greater Toronto Area’s Peel Region has taken a disturbing turn, placing it third in North America for high cargo theft activity.
“We’re third in North America for cargo theft, behind the states of California and Florida,” Haywood said. “We rival the same theft rates as Texas. But then again, you’re talking about an entire state, and we’re a region, a small region in Ontario.”
He added that one of the alarming trends is pilferage during transit. Organized crime groups are now actively targeting trucks while they are on the move.
According to Haywood, high-value loads often follow predictable schedules, making them easy targets. Thieves will monitor distribution centers to identify specific trucks used for routine shipments. After observing the schedule for about a week, they choose a strategic location, such as a stoplight, where the truck must stop or turn. They stage a fake breakdown, parking a car in the turn lane with the hood up or some other distraction to block the truck’s movement.
“Meanwhile, they’ll cut the lock on the back of the trailer,” Haywood explained, adding that drivers are usually unaware of the theft due to the noise inside the cab. The thieves gain access to the trailer, quietly load stolen goods into bags or containers, and then shut the door, allowing the truck to continue its journey. Later, the truck is forced to stop again, where the criminals quickly transfer the stolen items into waiting vehicles and flee the scene.
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