Freight fraud is no longer a niche problem or an occasional disruption — it has become a systemic risk impacting supply chains across North America. What was once largely opportunistic cargo theft has evolved into a sophisticated, technology-enabled ecosystem of fraud that is costing the industry billions of dollars annually and challenging the way companies think about risk, trust, and execution.
The scale of the problem is striking. Recent industry data shows that cargo theft and fraud incidents continue to rise sharply year-over-year. In January 2026, Verisk CargoNet reported that estimated cargo theft losses surged 60% in 2025 to nearly $725 million, a sign that organized criminal groups are becoming more selective and targeting higher value freight. While incidents are increasing and costs are climbing, the real story for shippers, freight brokers, and carriers alike lies in how freight fraud is changing.
From Physical Theft to Strategic Deception
Historically, cargo theft was largely physical: breaking into trailers, stealing from warehouses, or targeting unattended trucks. While those risks still exist, today’s fraud landscape has shifted toward strategic theft — schemes built on deception targeting supply chain vulnerabilities to mislead shippers, brokers, and carriers and gain access to freight under false pretenses.
This includes tactics like identity theft, where bad actors impersonate legitimate carriers or brokers; double brokering, where loads are illegally re-tendered without the shipper’s knowledge; and buying old authorities (DOT and MC numbers) outside of legitimate sales channels to appear as established carriers. In more advanced cases, fraudsters use data spoofing to falsify GPS signals or shipment updates, creating the appearance that freight is moving as planned when it has already been diverted.
The common thread is increasingly tech-savvy criminal networks. Supply chains are built on speed and coordination, and bad actors are taking advantage of fragmented systems, inconsistent verification processes, and the pressure to move quickly.
The True Cost of Freight Fraud
The financial impact of freight fraud extends far beyond the value of stolen goods. While individual incidents can cost hundreds of thousands of dollars — and sometimes even into the millions — the ripple effects are even more damaging.
Companies face increased insurance premiums, operational disruptions, and strained relationships with stakeholders. In many cases, reputational damage can be long-lasting, especially when high-value or time-sensitive shipments are involved, such as electronics, food, or industrial materials. Compounding the issue is underreporting, as many organizations avoid reporting incidents due to concerns about rising insurance costs or reputational risk.
Building a Layered Defense Strategy
Recognizing the growing threat, both industry stakeholders and regulators are stepping up efforts to combat freight fraud. Agencies like the Federal Motor Carriers Safety Association (FMCSA) are modernizing systems and tightening controls around carrier registration and identity verification. While these measures are important, they are only part of the solution.
To more effectively combat freight fraud, companies need a layered, data-driven approach. The first layer is pre-tender carrier vetting, including verifying authority, insurance, identity credentials, and performance history. Using technology platforms that combine FMCSA authority data with historical tracking performance, vehicle identification number (VIN) verification, geo-location, and insurance validation at the point of onboarding, not just post-dispatch, helps prevent bad actors from entering the network.
The second layer is real-time visibility and in-transit monitoring. Once a load is tendered, companies must ensure shipments behave as expected by monitoring location data, identifying anomalies, and validating equipment and driver details. The third layer is operational awareness: train teams to recognize red flags and respond quickly to suspicious activity. Empower dispatchers and carrier reps to spot unusual tracking patterns, identity mismatches, FMCSA profile edits, or VOIP-based driver phones that could be linked to fraudulent entities.
Parting Thoughts
As freight fraud becomes more digital, technology is playing a central role in mitigating risk. Advanced solutions leverage large datasets, machine learning, and real-time analytics to identify patterns and flag suspicious behavior across the freight lifecycle. These tools help shift a company’s approach from reactive to proactive — detecting risks earlier, making smarter carrier decisions, and responding more quickly when issues arise. Freight visibility today is as much about security as it is about service.
Additionally, collaboration and information sharing across the industry are essential. As supply chains become more interconnected and data-driven, risk travels with the load throughout its journey. As a shared responsibility, fraud prevention depends on a mix of regulatory modernization, strong private-sector controls and multi-faceted real-time operational awareness. Companies that layer in technologies for end-to-end visibility into the movement of freight are better positioned to protect their operations, their partners, and their bottom line.
Andrew Wimer is VP of Strategic Operations at Descartes.
Freight Fraud: Combatting the Growing Threat to Supply Chain Integrity
Freight fraud is no longer a niche problem or an occasional disruption — it has become a systemic risk impacting supply chains across North America. What was once largely opportunistic cargo theft has evolved into a sophisticated, technology-enabled ecosystem of fraud that is costing the industry billions of dollars annually and challenging the way companies think about risk, trust, and execution.
The scale of the problem is striking. Recent industry data shows that cargo theft and fraud incidents continue to rise sharply year-over-year. In January 2026, Verisk CargoNet reported that estimated cargo theft losses surged 60% in 2025 to nearly $725 million, a sign that organized criminal groups are becoming more selective and targeting higher value freight. While incidents are increasing and costs are climbing, the real story for shippers, freight brokers, and carriers alike lies in how freight fraud is changing.
From Physical Theft to Strategic Deception
Historically, cargo theft was largely physical: breaking into trailers, stealing from warehouses, or targeting unattended trucks. While those risks still exist, today’s fraud landscape has shifted toward strategic theft — schemes built on deception targeting supply chain vulnerabilities to mislead shippers, brokers, and carriers and gain access to freight under false pretenses.
This includes tactics like identity theft, where bad actors impersonate legitimate carriers or brokers; double brokering, where loads are illegally re-tendered without the shipper’s knowledge; and buying old authorities (DOT and MC numbers) outside of legitimate sales channels to appear as established carriers. In more advanced cases, fraudsters use data spoofing to falsify GPS signals or shipment updates, creating the appearance that freight is moving as planned when it has already been diverted.
The common thread is increasingly tech-savvy criminal networks. Supply chains are built on speed and coordination, and bad actors are taking advantage of fragmented systems, inconsistent verification processes, and the pressure to move quickly.
The True Cost of Freight Fraud
The financial impact of freight fraud extends far beyond the value of stolen goods. While individual incidents can cost hundreds of thousands of dollars — and sometimes even into the millions — the ripple effects are even more damaging.
Companies face increased insurance premiums, operational disruptions, and strained relationships with stakeholders. In many cases, reputational damage can be long-lasting, especially when high-value or time-sensitive shipments are involved, such as electronics, food, or industrial materials. Compounding the issue is underreporting, as many organizations avoid reporting incidents due to concerns about rising insurance costs or reputational risk.
Building a Layered Defense Strategy
Recognizing the growing threat, both industry stakeholders and regulators are stepping up efforts to combat freight fraud. Agencies like the Federal Motor Carriers Safety Association (FMCSA) are modernizing systems and tightening controls around carrier registration and identity verification. While these measures are important, they are only part of the solution.
To more effectively combat freight fraud, companies need a layered, data-driven approach. The first layer is pre-tender carrier vetting, including verifying authority, insurance, identity credentials, and performance history. Using technology platforms that combine FMCSA authority data with historical tracking performance, vehicle identification number (VIN) verification, geo-location, and insurance validation at the point of onboarding, not just post-dispatch, helps prevent bad actors from entering the network.
The second layer is real-time visibility and in-transit monitoring. Once a load is tendered, companies must ensure shipments behave as expected by monitoring location data, identifying anomalies, and validating equipment and driver details. The third layer is operational awareness: train teams to recognize red flags and respond quickly to suspicious activity. Empower dispatchers and carrier reps to spot unusual tracking patterns, identity mismatches, FMCSA profile edits, or VOIP-based driver phones that could be linked to fraudulent entities.
Parting Thoughts
As freight fraud becomes more digital, technology is playing a central role in mitigating risk. Advanced solutions leverage large datasets, machine learning, and real-time analytics to identify patterns and flag suspicious behavior across the freight lifecycle. These tools help shift a company’s approach from reactive to proactive — detecting risks earlier, making smarter carrier decisions, and responding more quickly when issues arise. Freight visibility today is as much about security as it is about service.
Additionally, collaboration and information sharing across the industry are essential. As supply chains become more interconnected and data-driven, risk travels with the load throughout its journey. As a shared responsibility, fraud prevention depends on a mix of regulatory modernization, strong private-sector controls and multi-faceted real-time operational awareness. Companies that layer in technologies for end-to-end visibility into the movement of freight are better positioned to protect their operations, their partners, and their bottom line.
Andrew Wimer is VP of Strategic Operations at Descartes.
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