Digitalization of the Supply Chain Risks Exploitation and Increased Cargo Theft

VoIP, GPS, and Synthetic IDs Leveraged in Crimes—Cargo Theft Expected to Rise 22% in 2025

OAK BROOK, Ill., June 25, 2025 /PRNewswire/ -- As evolving technology has made transporting goods from port to port faster and more efficient in many ways, it has also created gaps in security that allow criminals to exploit cargo delivery systems. Increasingly, this digitalization results in fraudulent pickups, fictitious pickups, fictitious carriers and cyber-enabled logistics manipulation, according to the National Insurance Crime Bureau (NICB), the nation's leading non-profit association dedicated to preventing insurance fraud and crime.

For the first time, the value of stolen merchandise and estimated loss rose to more than $1 billion in 2023. Last year, 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% from already historic levels by the end of 2025. The estimated average value of an individual theft is more than $202,000.

"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, NICB's Cargo Theft Program Director. "The cost of these stolen goods is then passed along to the consumer."  

Technologies used to commit these crimes include:

GPS Jamming disrupts tracking systems and allows stolen cargo to be moved without detection. NICB agents have confirmed confiscations of these devices in cargo theft incidents and noted that thieves frequently disable GPS trackers which are not concealed effectively. 

VoIP such as TextNow allows thieves to spoof legitimate carrier contact information and remain anonymous. These applications offer their customers the ability 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 locations.

Synthetic IDs are identities created from a mix of real and fake identifiers such as a Social Security Number, Date of Birth and name, email, address, or phone generally derived from stolen or leaked data. 

Phishing Attacks are a form of social engineering and a scam where attackers deceive people into revealing sensitive information or installing malware such as viruses, worms, adware or ransomware.

Criminals use these technologies to disrupt and steal cargo in several ways:

Railway Theft, which is on the rise, occurs when organized criminal groups take cargo from trains or rail yards, either while in transit or stored. They target rail yards and trains particularly when passing through rural areas.

Ransom Demands happen when a cargo load is held for ransom by thieves impersonating legitimate motor carriers to gain possession of shipments through broker load boards. After securing the cargo, criminals move it to an undisclosed location, contact the shipper or broker, and demand payment for its return. Even when ransom is paid, many shipments are never recovered.

Shortening Loads is a term used when thieves steal only a portion of the cargo. This tactic allows criminals to pilfer valuable items without attracting immediate attention since the remaining cargo appears undisturbed. This method often goes undetected until the driver reaches their destination. Selectively removing portions of the cargo load allows criminals to minimize the risk of detection and increase chances of success. 

Strategic Cargo Theft is defined as events initiated through deception or fraudulent means impacting one of the links in the supply chain. This deception may take place within the supplier, the freight broker and/or the transporter. NICB has seen cases in which all three links have been infiltrated through fraud schemes resulting in loads of cargo being released, brokered and transported by legitimate services, but destined for criminal enterprises overseas.

The only way to stop cargo theft is through deterrence. The NICB recommends the following precautions for any entity engaged in the supply chain:

Screen every employee. Conduct a background check on every employee including those with access to the shipping information.

Train employees on the signs of cargo theft. Provide security training for every employee and educate truck drivers in hijack awareness and prevention as well as how to respond and report theft.

Check transportation partners before hiring. They should share your security philosophy, such as conducting background checks and employee training. Use freight brokers and transporters who do not permit double brokering. Ensure that only you as the shipper can make re-routing decisions and not the broker, transporter dispatch etc. The change order can only originate from the owner of the cargo.   Be cautious and scrutinize emails to ensure that they are legitimate and not altered.  Scrutinize and ensure phone numbers used by individuals within the supply chain are valid and if determined to be Voice Over Internet Protocol, to take additional vetting procedures.

Implement in-transit security measures. Cargo theft can be pre-planned or opportunistic and include an inside informant who follows the goods and ultimately leads criminals to quickly dispose of the cargo. Thieves will often wait outside known shipping facilities waiting for drivers to stop. Best practice is to not stop within the first 200 miles, park in known secure locations and avoid "hot spots" --areas known for increased frequency of cargo crime.

Keep a vigilant eye. Trucks and cargo are most vulnerable when sitting idle. Include countersurveillance – observance and 360visibility to your property and surroundings--in the duties of your security guards.

Take advantage of technology. Utilize layers of security: ensure the perimeter, entrances, building doors, and windows are well lit. Install alarm surveillance systems, vehicle and cargo tracking, immobilizers, and advanced security seals.

Conduct audits. Regularly look for gaps in shipment protection and stay abreast of how technology enables theft throughout the supply chain.

NICB develops proprietary threat assessments based on its own data as well as data from law enforcement, industry intelligence, CargoNet, FBI and Overhaul.

If you suspect potential cargo theft, call local law enforcement, your insurance carrier and NICB's hotline at 1-800-TEL-NICB.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

SOURCE National Insurance Crime Bureau (NICB)