Stopping bad actors requires industrywide collaboration
With holiday shipping ramping up, freight fraud is top concern for players across the industry. While companies fight all types of fraud throughout the year, strategic theft and straight theft are particularly prevalent in today’s market.
Cargo theft incidents were up 33% year over year in the second quarter of 2024, according to CargoNet. A total of 771 reported thefts during the quarter added up to more than $34 million in lost value, with distribution centers and truck stops being top targets. These threats show no signs of slowing down, reaching record highs earlier this year.
“Cargo theft has been around since there has been cargo,” Bill McDermott, senior investigator at Uber Freight, said. “We used to see lulls, and we’re not seeing that right now. I think as organized groups evolve and start to use different methods, it’s going to continue.”
CargoNet’s predictions for the coming months are in line with McDermott’s assessment. This means it is crucial for every participant in the supply chain to prepare for potential threats now, as we approach the busiest shipping season of the year.
As companies begin to move larger volumes of high-value goods ahead of the holiday season, McDermott urges people to remember the adage: Cargo at rest is cargo at risk.
Shippers, carriers and brokers should be particularly vigilant about securing and monitoring shipments moving via longer routes that require drivers to stop and rest. It is critical to train every employee in the organization on how to recognize and respond to potential threats – whether they are truck drivers or office workers.
“Companies need to have a playbook and be ready for a theft to occur,” McDermott said.
A comprehensive cargo theft playbook should include key contacts such as local authorities, insurance providers and other investigative resources. Each team member’s role should be clearly defined in case of an incident and include any pertinent information that can be immediately handed over to investigators.
McDermott also recommends that companies store these response plans in physical binders, not digitally on a computer. This ensures that the playbook is accessible even if a theft incident happens in conjunction with a cyberattack, which could disable digital access.
However, simply having a plan is not enough. McDermott emphasized the importance of running regular “tabletop exercises” with company leadership before a theft occurs. This ensures all staff members understand their roles – and the roles of their teammates – during an actual theft event, allowing companies to refine their response.
“You don’t want to have your worst day and be trying to figure it out on the fly,” McDermott said.
Being prepared means not only having a playbook, but also creating collaborative relationships with local law enforcement and other investigative teams before an incident occurs. Having established connections in these organizations allows for a quick response when an incident arises, when every minute counts in the effort to recover stolen freight.
“Speed is everything when it comes to recovering stolen goods,” McDermott says. “If you have connections already in place, the chances of a quick response go up significantly.”
It is also crucial to choose the right industry partners that can make or break their security protocols. Aligning with partners who prioritize security can make a difference in preventing theft.
“It is like any relationship. You have to engage a partner that has a like mind,” McDermott said. “Make sure they are security-minded and treat your product as if it were their own.”
When it comes to preventing theft, Uber Freight leads by example in its own playbook. It has implemented a robust suite of security protocols designed to help protect both itself and its partners. From onboarding and compliance checks to an in-house team of investigators, the company is security-minded at every turn.
Last year, Uber Freight was named “Best in Security” by CargoNet, underscoring its commitment to fraud prevention and mitigation. By leveraging machine learning algorithms and building strong relationships with law enforcement, Uber Freight not only strengthens its fraud prevention efforts, but also optimizes their chances of recovering stolen freight after a theft occurs.
Uber Freight doesn’t just try to safeguard its own operations, but also believes in coming alongside others in the industry – including its competitors – to fight fraud.
“You’re not going to lose the market by engaging with people in the fight against fraud or cargo theft,” McDermott said. “If we have an incident, we share that information with others because that is the approach we have to take as an industry. Our approach is to make sure everybody knows what this attack vector is.”
Bad actors take advantage of poor communication and strained relationships within the supply chain. By coming together and attacking fraud head-on, the industry has a better chance to protect itself and thwart bad actors in today’s changing landscape.
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