Last updated on November 19th, 2024 at 11:00 am
The growing threat of high value cargo theft can be mitigated by ID verification
In June 2024, an Illinois man was charged with stealing more than $9,500,000 in interstate shipments. How did he do it? With nearly a dozen fake IDs showing aliases from “Roland Butikis” to “Kathy Stone.” Cargo theft is becoming more sophisticated than ever before. Criminals steal shipments using shell companies, P.O. boxes, and most of all: fake IDs. Fake identity documents are a critical component to almost any fraud scheme, as they allow a bad actor to pose as a legitimate individual; in this case, a legitimate truck driver with authority to pick up valuable shipments.
How criminals use fake IDs to steal cargo
A cargo fraud scam often goes something like this:
A fraudster poses as an agent for a shipping or logistics company. They may pose as an employee of a legitimate or trusted company. Or they may impersonate a fictitious company using a phony website and email address, counting on your business not to dig too deeply. Sometimes they piggyback off a defunct or lapsed business’s website, stealing the domain, but allowing themselves to utilize the good reputation of the original site’s owner. In some cases, they will even have you remit payment to this entity, because their scam is to steal the cargo, not the payment for shipping.
Next the fraudsters create fake documentation. This includes fake IDs under an assumed identity. These can be purchased for as little as $20 online. They will use their photo, but names and addresses that match the business they are impersonating.
They pick up the cargo, using their fake ID. They are counting on the shipper not to have any ID fraud prevention software in place. They use the fake ID and take possession of the cargo. Once they have driven offsite with the truck, they are free to bring the cargo to a new, unapproved location, unload the goods, and resell them to pawn shops or on the black market.
In some instances this is known as double brokering fraud.
How ID verification can help prevent false pickups
No matter what level of sophistication a fraudster is using, they will always use fake IDs at the time of pickup, because they do not want their real identity to be on file. This would make it too easy for law enforcement to track them down. Using ID scanning or remote ID validation for driver verification ensures that every driver is using a valid document, and your business knows who they are.
First, most criminals in cargo theft have some history in the industry. They likely know which shippers have ID scanning and visitor management systems in place, and which do not. They will choose targets who lack this technology because that means that if their ID is checked at all, it will only be visually examined, and it is difficult to catch modern fake IDs with the naked eye.
By using an ID authentication device when drivers enter the facility, or before they drive off the lot, your business can catch 95% of fake IDs. This means that your team can flag any driver using false IDs or passports before they drive away.
In a study of businesses who implemented ID verification, they reported a 50% drop in presentment of fake IDs after only 6 months. This shows the power of ID verification not just as a solution for preventing ID fraud in realtime, but also for deterring criminals from targeting your business.
Cargo fraud stats & trend data
- Cargo theft spiked 68% in Q4 2024 (Freightwaves)
- $402,340 is the average gross cost of fraud (Overdrive Online)
- Cargo theft rose 60% between 2022 and 2023 (NewsNationOnline)
Cargo fraud instances in 2024
Thieves make off with over $40K in crab meat
As part of an organized crime ring in the Philadelphia area, this group stole 3 pallets of crab meat worth around $42,000 from a cargo truck.
Thieves make off with $10K in tuna
Part of the same crime ring mentioned above, this hit targeted a refrigerated cargo truck and stole $10,000 worth of tuna.
Beef bandits strike in Southwest Philly
A crime ring in Philadelphia broke into a refrigerated cargo truck and stole 12 pallets of meat containing 400 cases of beef.
Man arrested after warehouse full of stolen cargo discovered
An organized crime ring in California stole over 300 pallets from various cargo trucks. The pallets contained items ranging from small appliances to high end gaming computers.
Trucking company owner sentenced for cargo theft operation in Ohio
Done by altering serial numbers on paperwork and tampering with locking mechanisms, this operation stole a range of items like robotic vacuums, computer monitors, and Bath and Body Works pallets.
Four sentenced for cargo theft operation that netted $1.7 million in stolen goods
A criminal ring based in the southeastern United States stole over $1.7 million in shipments of needed goods, so things like flashlights, food, water, batteries etc.
Mexico averages 5 cargo theft incidents a day in June
While this might not be US based fraud, our neighbors to the south being targeted 843 times from January to June of 2024 in cargo theft schemes directly impacts the US and global supply chain.
CHP Recovers $46K in stolen Blackstone griddles
California Highway Patrol recovered 26 pallets of stolen Blackstone Griddles valued at over $46,000. The items were stolen using a fictitious-pick-up tactic.
New Jersey cargo heist crew stole over $300K worth of Costco bound shrimp
In addition to the $50,000 cargo trailer, a cargo theft ring in New Jersey stole frozen shrimp valued at $305,000 from a rented parking space.
$1.4M in stolen merch recovered from ‘cargo theft ring’ in Southern California
A crime ring in California was busted at a warehouse harboring over $1.4 million in stolen cargo. Among the stolen goods were over 160 pallets of items ranging from industrial tools to food products.
