SupplyChainBrain Think Tank; SCB contributor Karl Fillhouer addresses how freight fraud in the supply chain over the past several years has matured into a full-scale crisis — demanding urgent, strategic and federally enforced intervention. According to latest data from CargoNet, cargo theft is rising 13% year-over-year in Q2 2025 — with organized crime groups targeting high-value commodities nationwide. The magnitude of financial damage continues to accelerate — far outpacing preventive measures. While cargo theft cost U.S. businesses an estimated 25 billion dollars last year alone, industry stakeholders are calling for a technology-backed and federally unified approach to reducing freight fraud. Freight fraud is not a new problem — but the growth trajectory since 2020 has been striking — with some estimates placing the increase above 1,500%. After a brief plateau at the beginning of 2025, fraud surged again in the second quarter — with average theft values reported reaching 200K dollars per incident.
From a supply chain perspective, cargo theft and freight fraud represent one of the fastest-growing threat categories for the U.S. supply chain. CargoNet, a subsidiary of Verisk Analytics based in Jersey City, New Jersey, is a cargo theft database and prevention services provider. Strategic theft is an evolution of classic physical theft — perpetrated through counterfeit carrier identity (identity theft), fictitious pickup, double brokering, load board fraud, email spoofing, and phishing — the primary modern fraud types. The FBI's Internet Crime Complaint Center (IC3) reported Business Email Compromise (BEC) losses at 2.7 billion dollars in 2024 — with the logistics sector among primary targets. Hot-spot regions include California (Los Angeles, Long Beach, Inland Empire), Texas (Dallas-Fort Worth, Houston, Laredo), Illinois (Chicago), New Jersey, Florida (Miami), Georgia (Atlanta), and Tennessee (Memphis) as principal U.S. cargo theft regions.
From a supply chain perspective, cargo theft prevention technologies include GPS tracking, geofencing, tamper-evident locks, covert tracking, video surveillance, license plate reader (LPR), biometric driver verification, blockchain chain of custody, AI-based carrier validation, FMCSA (Federal Motor Carrier Safety Administration) SAFER database queries, MC/USDOT number verification, and platforms such as SmartHop, Highway, Truckstop, DAT Freight & Analytics, Carrier411, Carrier Assure, Highway by FreightWaves, RXO, Convoy (shutting down), Uber Freight, Loadsmart, FourKites, Project44, Tive, Roambee, Sensitech, ORBCOMM, Geotab, Samsara, and Motive (formerly KeepTruckin) — primary cargo security and visibility platforms.
From a supply chain perspective, federal intervention and regulation involve FMCSA, FBI, U.S. Department of Transportation (DOT), Department of Homeland Security (DHS), Cybersecurity and Infrastructure Security Agency (CISA), and Customs and Border Protection (CBP) as principal federal agencies. Combatting Organized Retail Crime Act (CORCA) and the INFORM Consumers Act (2023) are primary U.S. federal statutes. National Insurance Crime Bureau (NICB), Transported Asset Protection Association (TAPA), Cargo Theft Recovery Network (CTRN), and Pharmaceutical Cargo Security Coalition (PCSC) are principal industry representation and prevention organizations. California AB 2390 (September 2024) escalates penalties for cargo theft — with Texas HB 4128, Florida HB 549, and Georgia HB 451 as principal state-level cargo theft statutes. TIA (Transportation Intermediaries Association), OOIDA (Owner-Operator Independent Drivers Association), ATA (American Trucking Associations), and NMFTA (National Motor Freight Traffic Association) are principal U.S. highway transportation sector organizations. In conclusion, as Karl Fillhouer emphasizes, the freight fraud crisis represents one of the most critical security issues facing the U.S. supply chain — requiring coordinated implementation of technology investment, federal coordination, and industry collaboration.
Key Points:
1. CargoNet reports cargo theft rising 13% year-over-year in Q2 2025.
2. Cargo theft costs U.S. businesses 25 billion dollars annually.
3. Freight fraud has experienced increases exceeding 1,500% since 2020.
4. Average theft value reaches 200K dollars per incident.
5. Strategic theft, fictitious pickup, and double brokering are principal modern fraud types.
