Crime rings attack US supply chain at record rates using this sneaky tactic: report

Cargo theft has been on the rise in the United States, with organized crime rings using a new sneaky strategy to steal goods from cargo trucks, train cars, and warehouses. These criminals are hacking into supply chain technology and impersonating legitimate shipping companies to deceive buyers and steal the cargo for themselves. According to a six-month CNBC investigation, there were 3,798 reported incidents of cargo theft in 2024, a 26% increase from the previous year.

The total reported losses from these thefts amounted to nearly $455 million last year, but experts believe the actual number could be closer to $1 billion or more since many incidents go unreported. Criminal groups from at least 32 countries have been linked to these scams, making it a widespread problem that affects various industries.

One example of this strategic theft involved a toymaker losing over $1 million worth of holiday merchandise to thieves who impersonated legitimate firms. Identity thefts like these have been on the rise, accounting for 8% of all cargo theft in 2020 and increasing to nearly one-third by the end of 2024.

Companies that hire brokers to organize shipping matters are often targeted through online platforms like DAT Freight and Analytics. These platforms can be infiltrated by criminals who initiate fake listings to deceive companies and steal their cargo. Major companies have been targeted by these crime rings, but many are hesitant to report the crimes or speak publicly about them due to concerns about recovery and reputation.

The effects of widespread cargo theft are starting to be felt by consumers, as retailers are forced to raise prices and struggle to maintain inventory levels. Retailers like Lululemon have reported significant losses due to cargo theft, leading to disruptions in their supply chain and potential shortages for consumers.

To combat this growing issue, shipping companies are investing in upgraded security systems, and legislation has been introduced to address organized retail crime. Bills like the Combating Organized Retail Crime Act and the Household Goods Shipping Consumer Protection Act aim to create coordination centers and impose stricter regulations to prevent cargo theft and protect consumers.

Overall, cargo theft is a growing problem that requires collaboration between government agencies, law enforcement, and private companies to address and prevent future incidents. Businesses and consumers alike must remain vigilant and take necessary precautions to safeguard against these sophisticated criminal tactics.