Authors: Chris Demetroulis Christina Reiz
Key takeaways
- Organized crime groups are targeting easy-to-resell goods such as electronics, computers and phones.
- Using bio tags enables authenticity checks at any handoffs in minutes.
- Implementing robust control measures across the chain increases the likelihood of securing better terms and reducing loss.
The rising incidents of cargo theft have become a significant concern for the supply chain and logistics industry. According to Verisk CargoNet, estimated losses across North America surged by 60% to nearly $725 million in 2025. The average loss per incident increased to $273,990.1
Cargo theft has always existed, says Chris Demetroulis, managing director, Transportation, Gallagher. What stands out today is the technological advancements that have enabled criminals to exploit weaknesses in logistics systems with greater efficiency.
According to Gallagher's 2026 Supply Chain Disruption research, cargo theft and physical security risks are currently an issue for more than a third of businesses. As supply chains become more complex, their attack surfaces expand. More hands are involved, creating ambiguity that high-value thieves can monetize.
The need for heightened vigilance in cargo theft prevention
What to watch for at the front line of cargo theft
- Impersonation at pickup: A driver looks right and has clean paperwork, but the driver's identity or carrier authority doesn't match your verified records.
- Document manipulation and appointment changes: You receive a request through email or text — usually late in the day or during peak periods — to alter pickup details.
- Process shortcuts under pressure: Busy shifts, holiday windows and thin staffing make it tempting to waive a call‑back or skip a second verification check.
While traditional methods such as trailer burglaries and full‑truckload thefts still persist, thieves are using technology to impersonate carriers and drivers through life-like video, along with realistic audio, to change appointments and to walk away with high‑value goods without detection.
Criminals are changing how they steal freight, says Christina Reiz, executive director, Transportation, Gallagher. They target higher‑value, easy‑to‑resell goods such as computers, phones and servers. Logistics providers and freight forwarders only realize the extent of their vulnerability after experiencing multiple incidents.
This kind of theft continues to happen in hotspots such as California and Texas, with sharp upticks in New Jersey (+50%), Pennsylvania (+24%) and Indiana (+30%).1 Thieves are still targeting predictable locations such as warehouses, distribution centers and truck stops, especially near ports where goods change hands under time pressure.
Attacks have moved upstream as deception-based crimes — such as fictitious pickups, identity takeovers and double brokering — increasingly occur at the pickup, where some transportation companies still trust too easily.
Product authentication using bio tags
What is a bio tag in logistics?
As criminals have begun stealing cargo at arm's length, it's crucial to innovate prevention and recovery methods. Technologies like bio tags — which enable real-time tracking and authentication of cargo — are promising. These tools could help reduce theft and influence insurers to reconsider some of the stricter policy limitations currently in place.
Properly deployed, bio tags create an invisible, tamper‑resistant identity for goods that can be verified at every stage of the supply chain within minutes. This verification enables cargo handlers to conduct rapid spot‑checks at pickup and delivery to authenticate the goods, which benefits clients and insurers by enabling more secure, transparent tracking.
Bio tags are covert and durable. They're much harder for criminals to copy or remove compared with a visible QR code or a detachable radio-frequency ID (RFID) label. Pair tagging with smart verification and secure telemetry to reduce theft frequency, ensure speedy recovery and obtain better insurance terms.
Risk management strategies for cargo theft prevention
- Update verification methods: Always call back using verified numbers on file and avoid the number mentioned in a fresh email chain.
- Focus on getting the basics right: Shorten dwell times wherever possible. Stick to role‑based access at warehouses and accurately log handoffs.
- Tighter vetting: Screen freight forwarders, motor carriers and third parties to ensure safety, regulatory compliance and cargo security.
- Prioritize consistency: Convert your process into short checklists and train teams to use them as practice. Pay extra attention during staffing changes and holidays.
- Plan for a rainy day: Maintain a post‑incident response plan. Keep verification logs, camera footage and bio/DNA results up to date and ready to hand over to the authorities when required.
Policy watch: Updates on the CORCA bill to combat cargo crime
- Establish a federal response to the increase in cargo theft by criminals operating across state and international borders.
- Establish a national coordination center within the Department of Homeland Security to bring together federal, state and local teams and share information with the industry.
- Give prosecutors stronger tools, including expanded forfeiture and money‑laundering provisions, and the ability to combine multiple thefts into a single federal case to target organized criminal activities that cross state lines.
Cargo underwriters respond with tighter wordings and conditions
Cargo insurance is following a path similar to Cyber insurance. It began with broad terms and relatively cheaper premiums until the market tightened. As losses rise and thieves change tactics, insurers are raising retention rates. They're also introducing more exclusions for poorly controlled risks.
The markets still reward discipline. Insurers are willing to provide coverage for fraud by deception and mis-delivery when a client can prove that it has disciplined controls at the points of exposure. Pickup verification logs, audit trails, training records and proof that you use authentication checks can help secure better terms.
In some segments, losses have outpaced premiums; however, capacity and appetite have contracted. Carriers are pushing more responsibility back to insureds or splitting programs between multiple carriers to better manage accumulation.
The strategic response is to think about insurance as a designable part of the solution and work with your broker to ensure renewal submissions are as detailed as possible.
Make risk discipline your advantage
Gallagher, as a trusted advisor, supports transportation operators in developing strategic risk management practices tailored to specific needs.
Our specialists work with insurers to align the best practices they want to see and help clients put them into daily use. Those best practices include rigorous vetting of freight forwarders and motor carriers, tighter identity checks at handoff and simple routines that cut dwell times and reduce exceptions, says Demetroulis.
Collaborating with a proactive broker is essential. At Gallagher, we believe that a stronger risk profile comes from two things: fewer opportunities for loss and clearer proof that your controls work.
To learn more, please contact us.
