In 2024, cargo crimes increased to an all-time high, up 27% from 2023, according to CargoNet. Annual cargo theft losses are expected to rise another 22% – 25% from already historic levels by the end of 2025, fueled by deceptive tactics generated by artificial intelligence (AI) and advanced technologies.
“From the comfort of their own home or overseas, a criminal can use voice over internet protocol (VoIP), GPS, and a synthetic ID to reroute electronics, medicine, clothing, food, and beverages meant for your local store to their doorstep in another country,” said Robert Bornstein, Cargo Theft Program Director, National Insurance Crime Bureau (NICB).
Technologies used to commit cargo theft include:
GPS Jamming: Disrupts tracking systems, allowing stolen cargo to be moved undetected.
VoIP: Includes TextNow, which allows thieves to spoof legitimate carrier contact information and remain anonymous. These applications enable their customers to select and utilize telephone numbers with any valid area code. Criminals are leveraging these services, along with fictitious email accounts and altered Department of Transportation (DOT) records, to impersonate companies, bid on shipments, and reroute freight to unauthorized drop-off locations.
Synthetic ID: These identities are created from a mix of real and fake identifiers such as a Social Security Number, date of birth, name, email, address, or phone, generally derived from stolen or leaked data.
Phishing Attacks: Attackers deceive people into revealing sensitive information or installing malware such as viruses, worms, adware, or ransomware.
How the Transportation and Insurance Industries, Along with Law Enforcement, Are Responding
Stakeholders across transportation, insurance, and law enforcement are implementing multifaceted strategies to fight cargo theft:
- Rigorous vetting of carriers and drivers
- Enhanced document verification during pick-ups
- Real-time GPS tracking and tamper-proof seals
- Employee training in hijack and fraud awareness
- Strategic insurance coverage tailored to the growing threat
Additionally, while AI is facilitating criminals in stealing cargo, it is also helping the transportation industry defend against theft. Companies are now deploying AI-based monitoring systems, like smart surveillance and geofence-triggered alerts, to secure yards and detect unauthorized access.
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