Cargo theft is running rampant in the U.S. today and costing the industry up to an estimated $35 billion, according to the National Insurance Crime Bureau. And the problem is getting worse with dramatic increases in cargo theft since 2021, reports the industry trade group, the American Trucking Associations. The long-time practice of stealing freight off truckloads and trailers remains the most fraud-prone.

But what’s changed is the prevalence of increasingly sophisticated and organized fraud schemes, according to the Transportation Intermediaries Association (TIA), among other trade groups. Recent news sources report organized crime syndicates now use advanced tactics such as fraudulent brokering, identity theft and double-brokering scams to infiltrate the U.S. supply chain.

Dubbed “strategic thefts,” there’s often an online where criminals pose as legitimate shipping firms or brokers, deceive shippers and carriers, and then abscond with cargo, making the thefts difficult to trace and prosecute. Or, they fraudulently receive payments intended for legitimate companies in the supply chain.

Watch out for strategic theft

Experts have also confirmed that these strategic thefts aren’t isolated incidents but frequently components of broader, coordinated operations by organized crime rings, sometimes with transnational links. Estimates by the Verisk CargoNet, a theft prevention and recovery network, found that strategic theft has skyrocketed from about 8 percent of all cargo theft in 2020 to about one-third of stolen cargo, as reported by CNBC.

Involving strategic thefts, unlawful brokering scams continue to top the list of threats — the most common type of fraud reported by 34 percent in a TIA member survey conducted in early 2025 and noted in TIA’s State of Fraud in the Industry April 2025 report. TIA’s findings were also drawn from six months of fraud reports submitted through its Watchdog platform, where TIA members can vet carriers. Other cargo fraud tactics include spoofing, identity theft, phishing, fictitious pickups, and impersonations via inbound phone calls.

Top types of stolen commodities

Many criminals have long focused on stealing high-value, easy-to-resell goods. According to TIA’s April 2025 State of Fraud report, the top five types of stolen commodities are 1) household goods; 2) electronics/appliances; 3) frozen/refrigerated foods; 4) printed materials and packaging; and 5) machinery. Other food products like seafood and produce; metals (including non-ferrous metal); and rubber products and tires round out the most common theft targets.

While no region of the country is immune from theft, TIA’s 2025 Fraud report found fraud continues to concentrate in logistics hotspots, with Texas and California leading as the top states where incidents originated. Other frequent mentions were states such as South Carolina, Washington and Virginia that have key freight corridors and infrastructure, making these areas ripe for organized fraud rings.

Ways to prevent cargo theft

TIA’s reporting and recommendations reflect the multi-layered approach that many 3PLs, carriers and freight brokers are taking to combat fraud. Tactics include everything from staff training in security protocols and incident reporting to implementing more robust cybersecurity measures and greater sharing of information with legitimate parties.

Technology plays a huge role in preventing cargo theft. TIA’s 2025 Fraud report found that members are investing in fraud prevention technology like GPS and AI and the necessary systems to monitor and verify a carrier’s legitimacy. GPS tracking and alarm systems with alerting capabilities, along with real-time monitoring tools help to secure vehicles and cargo in transit.

From an online systems perspective, protocols like multi-factor authentication and use of best-in-class transportation management systems (TMS) and other freight and logistics software solutions go a long way to prevent fraud.

In its 2025 Fraud report, TIA identified these most commonly cited fraud mitigation and vetting strategies that shippers, 3PLs and logistics providers can take to prevent fraud and cargo theft:

Company practices

• Use internal “Do Not Use” lists and flag suspicious activity
• Use real-time load tracking tools and conduct equipment verification
• Implement standardized internal protocols and employee training programs
• Collaborate with peers and industry networks to share intelligence and red flags

Practices and policies to use with carriers and logistics providers

• Verify carrier authority, insurance and safety records through multiple trusted sources
• Monitor carriers and providers for recent contact or ownership changes
• Confirm emails and phone numbers against established records
• Avoid first-time or unknown carriers on high-value or high-risk loads
• Require supporting documentation such as proof of delivery, VINs or photos

Legislative efforts to prevent fraud

TIA is among the trade groups that work with the Federal Motor Carrier Safety Administration (FMCSA) to prevent TL cargo theft and online fraud. FMCSA’s efforts include enhanced data-sharing and safety that make it easier for carriers and shippers to verify each other’s credentials. The public agency is also pursuing stronger regulation and enforcement. For example, FMCSA is gaining enhanced authority through new bipartisan legislation, such as the Household Goods Shipping Consumer Protection Act, which aims to the agency’s ability to issue civil penalties against bad actors in the shipping sector.

FMCSA also offers these tips to carriers and brokers who may suspect fraud at: https://www.fmcsa.dot.gov/mission/help/broker-and-carrier-fraud-and-identity-theft.