Fraudulent pickups the latest trend in organized cargo theft

Car thief disarming car protections with laptop computer alternate text for this image — iStock.com/dardespot

Criminals behind cargo thefts are turning away from opportunistic hijackings for more orchestrated crimes, an expert tells Canadian Underwriter.

“We have seen an uptick in claims,” says Ryan O’Connor, North American regional head of ocean cargo at Allianz Commercial, “and a lot of it is fraudulent pickups.”

Criminal networks are stealing cargo by gaining information about a carrier’s shipment, including the pick-up time and location. Then, posing as the carrier, they pick up the load by forging paperwork and replicating uniforms and company logos, Équité Association reports.

When the actual carrier arrives, the cargo will have already been stolen.

“Rather than guns in faces and hijackings, we’re seeing a lot more [criminals] using technology to come in and just pick up goods,” says O’Connor. “They were tipped off to it, and it’s actually given to them by the insured — and off it goes.”

These crimes are being orchestrated by highly sophisticated crime networks, which are repeatedly targeting high-value and consumable goods, finds Allianz Commercial’s Safety and Shipping Review 2025.

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New face of cargo crime

Theft is the Number 1 reason for cargo claims and it’s increasing, driven by high inflation and a cost-of-living crisis, Allianz’s report finds.

Food and household goods are the top-targeted commodity, followed by cosmetics, vitamins and supplements, consumer electronics, copper products, cryptocurrency mining hardware, and other luxury items, the report says. Cryptocurrency mining hardware refers to a specialized computer system designed to validate crypto transactions.

In the past, cargo thieves were opportunistic, often picking items off the back of trucks overnight. But with the rise of organized cargo theft, criminal organizations are carrying away entire shipments in broad daylight.

This is driving higher loss ratios for cargo insurance customers.

Cargo theft activity in North America increased by 27% in 2024 from the year prior — US$455 million worth of goods were stolen across 3,625 reported incidents, according to Verisk CargoNet.

Acting against theft

Strong adherence to security and risk management controls can quell the rise of these orchestrated thefts. But for many cargo carriers, particularly small- or mid-market ones, that’s easier said than done.

“Generally, [large carriers] spend a lot of money on logistics,” says O’Connor, “and the more that you invest in established logistic firms, the less that you’re likely to have some of these hijackings and thefts.”

Shippers of all sizes must place a sharper focus on loss prevention and protecting cargo from theft, O’Connor says. That starts with vetting their carriers and ensuring staff are complying with security procedures.

“What they can also do is strengthen their contracts to make their carrier have more skin in the game when it comes to subrogation,” says O’Connor. “Because a lot of these contracts have gotten to the point where there’s very little recovery potential [for stolen cargo] — particularly even if the insured is deemed partially responsible, or should have been knowing better.”

Insureds might also consider enhanced security measures for the highest-risk cargo, such as convoy arrangements and the use of GPS trackers to protect goods in transit.

“There are specialized carriers that do a superior job at that,” says O’Connor.