Reducing Cargo Fraud

Mitigating Cargo Fraud in the Trucking Industry
Written By: Rhonda Schroeder | AVANTI PR

As we close out the year and enter the peak season for trucking, it’s crucial to prioritize the safety of our businesses and the goods we transport. Preventing cargo fraud requires a proactive approach integrating technology, employee training, and process improvements. With key strategies, companies can reduce the risk of fraud and enhance their cargo security. Cargo fraud is rising, with almost 700 thefts reported in the third quarter of 2023 — a staggering 59% jump from the previous year (CargoNet). Economic challenges and supply chain vulnerabilities have made fraudulent activities like double brokering and cyberattacks more common.

Here are some Key Steps to Safeguard Your Business and Reduce Cargo Fraud:

• Authenticate MC/USDOT Numbers: Conducting basic credential checks and adding security layers can thwart many common fraud schemes. Using vetted and reputable carriers can help reduce the risk of fraudulent pick-ups.

• Use Secure Platforms: Choose reputable digital solutions that connect you exclusively with prequalified carriers/brokers and vet any public load boards.

• Build Strong Carrier Relationships: Establishing trust with carriers and third parties leveraging secure communication channels can make a significant difference.

• Plan Your Route: Avoid high-risk areas and plan a route that includes secure, well-lit parking areas.

• Purchase Cargo Insurance: Protect your goods against theft, fire, and accidental damage through comprehensive cargo insurance (Consult with your insurance agent regarding personalized policies).

• Safeguard Data: Implement robust cybersecurity measures such as encryption, multi-factor authentication, and regularly review security protocols.

• Real-time Tracking: Invest in tracking technology to monitor cargo movement in real time.

• Train Drivers and Employees: Educating staff on common red flags and suspicious behavior can further help prevent fraud on cargo security protocols.

• Stay Vigilant: Be mindful of sophisticated cargo theft, where fraud and misleading information are used to deceive shippers, brokers, and carriers into handing over goods to wrongdoers.

• Keep Up with Trends: Stay informed about the newest threats and warnings, and track trends and patterns of cargo theft specific to your area and other industries.

**Importantly, consult with your insurance agent, as these above tips are general guidelines. Personalized advice from an insurance professional is essential before making any insurance-related decisions.