Organized crime rings are exploiting vulnerabilities in the U.S. supply chain at unprecedented rates, employing sophisticated tactics to steal cargo. According to a report, criminals hack into supply chain systems and impersonate legitimate shipping companies, promising delivery to buyers but instead stealing the goods for themselves. A six-month investigation by CNBC revealed that cargo theft incidents surged to 3,798 in 2024, marking a 26% increase from the previous year, based on data from Verisk CargoNet. The total reported losses across the U.S. supply chain reached nearly $455 million last year, though industry experts suggest the actual figure could exceed $1 billion annually due to unreported cases. Jerry Jacobs, overseeing risk management at Prosponsive Logistics, emphasized the constant vigilance required to combat these threats. One notable incident involved London-based Flycatcher, which lost 12,600 toy projectors after its broker fell victim to identity theft. Identity theft now accounts for nearly one-third of all cargo thefts, up from 8% in 2020. Criminal groups from at least 32 countries have been linked to these scams. Brokers often use platforms like DAT Freight and Analytics, which have been exploited by criminals. Major companies, reluctant to report thefts publicly, face challenges in recovering stolen goods. Retailers may pass on increased costs to consumers due to shortages caused by theft. Legislation such as the Combating Organized Retail Crime Act and the Household Goods Shipping Consumer Protection Act aims to address these issues. Meanwhile, shipping companies are investing in enhanced security measures.
— new from New York Post
