Organized crime groups are blamed for the increase in cargo thefts in the third quarter

According to a report from CargoNet, a Verisk company, the third quarter of 2024 saw a significant year-over-year increase in cargo theft incidents in the United States and Canada, with organized crime groups adopting new tactics.

The report recorded 776 cargo thefts in the third quarter of 2024, which CargoNet said represents a 14% increase compared to the same period in 2023, which in turn was 59% higher than the third quarter of 2022.

The total value of stolen goods was $39.4 million in the third quarter, an increase from $31.2 million a year earlier.

The report said warehouses and distribution centers were the most common locations for cargo theft, followed by truck stops. California, Texas and Illinois were the three states hardest hit. They accounted for 52% of all cargo thefts in the quarter, while these states' share of total thefts was 49% in the third quarter of 2023.

There has also been a shift in the target goods, reports CargoNet. While thefts of solar panels, motor oils and energy drinks declined in the third quarter of 2024, thefts of shoes, computers, high-end audio systems and hard liquor increased, the report said.

“The main drivers of cargo theft remain organized crime groups that specialize in strategic forms of cargo theft, which typically involve some form of document fraud, identity theft and the intent to steal the property they are intended to transport,” explained CargoNet.

These groups have increased their phishing efforts to gain unauthorized access to the official email accounts of motor carriers, using these compromised accounts to bid on shipments and bypass compliance checks.

The report also noted a change in the tactics of these groups. Once focused on obtaining trucking licenses in California, criminal groups are now targeting licenses in states where there is not a high risk of cargo theft. This change came as many companies began implementing policies to avoid working with new airlines from California, the report said.

Increased evasion techniques are also being used, with criminals swapping license plates, driver's licenses, and truck and trailer numbers on every pickup truck. Stolen shipments are staged at centralized collection points, allowing malicious actors to focus on obtaining as many shipments as possible before the industry learns of their criminal activities.

The report highlights the need for vigilance and adaptive security measures across the supply chain. As CargoNet predicts, strategic theft squads will evolve to evade compliance audits in the final quarter of 2024 and beyond.

You can find the full report here. &