Cargo theft is a scourge on the trucking industry — and it’s only getting worse. These incidents drive up costs not only for trucking companies, but ultimately, consumers.
That’s why in July, efforts were made in Washington to help combat this growing problem.
Rep. David Valadao (R-California) introduced the Safeguarding Our Supply Chains Act in Congress to help counter the sharp rise in cargo theft and other supply chain fraud. Earlier, Valadao secured support for an anti-cargo theft provision in the fiscal year 2025 Department of Homeland Security funding bill, which would direct $2 million toward the establishment of the Supply Chain Fraud and Theft Task Force.
The Safeguarding Our Supply Chains Act would aid this effort in several ways, Valadao says.
First, it directs Homeland Security Investigations (HSI) to work in conjunction with the FBI and U.S. Attorney General to establish the Supply Chain Fraud and Theft Task Force.
Second, it establishes the purpose of the task force, which is “to address supply chain fraud and theft throughout the rail, motor carrier and intermodal systems, as well as detect, disrupt and deter organized theft groups that are targeting all stages of the supply chain,” according to Valadao.
The act also establishes the Supply Chain Crime Coordination Center through HSI’s Innovation Lab to collect and analyze data related to supply chain fraud and theft, as well as to identify regions in the United States, modes of transportation, distribution networks and retail stores that are experiencing high volumes of organized crime.
Establishing that the Task Force must “ensure a coordinated, multi-agency, intelligence-based and prosecutor-led approach to identifying, disrupting and dismantling organizations responsible for the organized theft, fraud and theft-related violence in the United States supply chain,” Valadao said.
Additionally, the act authorizes $100 million to be appropriated for fiscal years 2025-2029.
Reps. Brad Schneider (D-Illinois), Darin LaHood (R-Illinois), Vince Fong (R-California), August Pfluger (R-Texas) and Jim Costa (D-California) have joined Valadao in introducing the bill.
“… families are paying more for just about everything, and supply chain disruptions only make this problem worse,” Valadao said. “The alarming increase in cargo theft is having a devastating impact across industries, and we need to do more to ensure these goods are making it to their destination.”
Growing threat
According to CargoNet, cargo theft spiked by 57% in 2023 compared to the prior year. Thefts have continued at a rapid pace in 2024, increasing another 10% in the first three months of the year. In the year’s first quarter, there were 925 documented incidents of cargo theft, with an average loss of $281,757 per stolen shipment.
California, Texas and Illinois had the highest incidents of cargo theft, accounting for 61% of all documented cases. However, motor carriers are not required to report these incidents, so actual cases are likely much higher.
Cargo theft not only disrupts the supply chain for American consumers, but it also endangers the lives of truck drivers and law enforcement.
The issue is becoming so serious that the American Transportation Research Institute added security — including cargo theft and cyber threats — to its list of strategic priorities earlier this year.
“The billions of tons of goods transported by trucks from coast to coast have increasingly become a prime target for organized crime rings, putting truck drivers at risk and raising costs for consumers,” said Henry Hanscom, senior vice president of legislative affairs for the American Trucking Associations. “The Supply Chain Fraud and Theft Task Force created by this bill would strengthen the partnership between motor carriers, law enforcement, the government, and other supply chain partners to strike an effective blow against organized crime.”
Fighting back in cyberspace
Meanwhile, the team at the National Motor Freight Traffic Association (NMFTA) is working to combat cargo theft through cybersecurity protocols. According to Joe Ohr, COO of NMFTA, cargo thieves are constantly upping their game.
“The threat landscape itself has really changed,” he said, adding that load boards can be easy targets for cybercriminals.
“What happens is the bad actors will go in and put a bid on the fleet, or they’ll put a bid on the cargo,” Ohr said. “They’ll have it routed to them using a fake account and number, and then they get the load.”
As digitalization becomes more integral to the trucking industry, cyberthieves have even more avenues available through which to hijack shipments, adding to trucking companies’ vulnerabilities.
“We have phishing, we have ransomware — those are things that impact everyone, whether you’re in health care, trucking, almost any industry,” he said. “And then we have to consider the trucking systems — the telematics, the GPS, the trucks themselves — they’re all connected devices.
“Drivers’ laptops, their tablets, the ELDs — they’re all used in logistics and fleet management, and they’re all vulnerable,” he continued.
Ohr advises that truckers and trucking companies encrypt all information that’s transmitted in order to avoid cyberattacks.
“Make sure you’re using secure communications,” he said. “Make sure you have access control authentication. And when an employee leaves, make sure you’re offboarding them properly.”
Multi-factor authentication is an important safeguard, Ohr says.
“Make sure you have real-time monitoring,” he said. “Make sure that if somebody’s in your system, you know it and you’re detecting in real time. One of the new things is blockchain for security. It can enhance the security and transparency of the logistics operation. Use industry standards.”
Above all, Ohr says it’s critical for companies to constantly monitor their networks. In addition, he recommends that carriers segment their networks; this provides security teams with increased control over the data that goes in and out of the system.
Finally, he says, invest in training to help employees recognize and avoid threats. One of the simplest strategies is to avoid the use of public Wi-Fi.
“A lot of this comes down to training,” he said. “As the criminals get smarter, we have to get smarter, and the training has to get better.”
This story originally appeared in the September/October 2024 edition of Truckload Authority, the official magazine of the Truckload Carriers Association.
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
