Four trends you should know

Many regions in Canada are witnessing a surge in cargo theft. While experts are hesitant to put a price tag on it, most agree that cargo losses total in the billions of dollars each year.

And despite more consistent reporting and closer monitoring, the problem isn’t going away. In fact, in some ways, it’s growing.

Cargo criminals are becoming highly sophisticated in their organization and approach, leveraging advancing technology and geographical weak points to target high-value loads. And cargo itself isn’t the only target: thieves are becoming increasingly more interested in the trailer as well, which is virtually impossible to recover once dismantled.

So, what do you need to know to stay better protected?

To help answer this very question, Northbridge Insurance has amalgamated data from local law enforcement reports, the Insurance Bureau of Canada, and other cargo authorities in its latest whitepaper on cargo theft. From this review of the current trends and changing risks we’re witnessing across Canada, here are four factors that may impact the safety of your cargo.

Thieves are hungry for food and beverage cargo

Food has historically been a primary target for theft, but meat in particular is rising in popularity. Since there are no distinguishing marks to look for, such as serial numbers or other tracking characteristics, it’s often the hardest to trace.

Moving perishable goods relies on an advanced logistical framework that requires coordination and investment: criminals are enticed by the fact that meat can be unloaded quickly, but it also needs to be. Spoiled meat is worthless, so refrigerated trucks are needed to transport the stolen load, and networks of people must be at the ready to sell and deliver the product to customers. All of this takes time, money, and practice. In turn, meat cargo is increasingly targeted by practiced and well-funded criminal networks.

Aside from mixed-load cargo like grocery and household products, construction materials and tools take a top spot on the list of targeted cargo. This shouldn’t come as a big surprise, either: as Canada’s construction boom continues, more resources are moving around, and that high-value material and equipment is attracting criminal activity.

Your location may help (or hinder)

Cargo being targeted for theft varies significantly across the country, and even within the same province. In Eastern Ontario and Western Quebec, auto parts and metal are attracting more cargo thieves this year. And in the west, lumber loads have become targets.

Certain places are also historically more vulnerable than others; for instance, Ontario and Quebec have been identified as the riskiest provinces, especially major cities like Montreal and the Greater Toronto Area. These regions see higher rates of theft for specific goods because of their connection to major highway arteries that allow for stolen goods to quickly move to neighbouring cities, where loads can be dismantled and sold off.

Good ‘old-fashioned’ theft is a thing of the past

While financial institutions and other lucrative targets have tempted hackers for decades, sectors like transportation and trucking – where fresh technology has spurred new growth – are gaining more attention from data thieves looking for ‘a big score.’

Cargo theft is an ongoing problem for carriers, and technology provides new ways for thieves to make off with freight. More than ever before, identity theft is being used to steal cargo loads.

Thieves visit online load broker sites and target specific loads that are scheduled to be picked up. Then they create false documents and pick up the load early using the stolen identity of an existing logistics company, effectively posing as their agent. Unless a real-time asset tracking system is in place, no wrongdoing is suspected until someone goes to retrieve the load – only to find out it’s already been picked up.

Of course, cargo isn’t the only asset at risk. Ransomware can be used to hijack a truck’s control system to suspend delivery and strand drivers until the victim pays the requested ransom. Such a situation could have grave consequences for the driver, and the criminals could make off with confidential fleet and customer information, too.

‘Tis the season for cargo theft

While holiday weekends throughout the year are prime time for cargo theft, the weeks leading up to Christmas are considered the peak season. This is when truckloads of valuable goods are moving along major highways as companies, retailers, and households prepare for the gift-giving holiday, increasing the potential payout for an already relatively low-risk, high-reward crime.

Cargo thieves may also take advantage of the distraction and unusual schedule of the hectic holiday season. Shipments can be left unattended and warehouses can be shut for long stretches of time, presenting thieves with a rare window of opportunity to transport and offload their stolen goods – long before it’s noticed that they’re missing.

Looking ahead

Cargo theft continues to pose major challenges to law enforcement, carriers, and insurers across Canada. Fortunately, more sophisticated approaches and closer cooperation is making gains in how thieves are thwarted and stolen cargo is recovered.

For more insights on cargo theft, find our latest whitepaper at nbins.com/cargo.