Safeguard Your Supply Chain
With the alarming increase in cargo theft and fraud in North America, this trend is of great concern to the entire industry, from 3PLs to carriers, brokers, shippers, vendors, insurance companies, and financial institutions. With thieves and fraudsters only getting more emboldened, better organized, and increasingly dynamic in their strategies, the situation is not going away any time soon.
WHO IS MOST VULNERABLE TO THEFT AND FRAUD?
Cargo theft and fraud can happen to anyone. However, the most common targets for theft and fraud are those manufacturing or transporting electronics, pharmaceuticals, high-value consumer goods, and food and beverage products.
FRAUDULENT METHODS TO WATCH OUT FOR
There are many types of fraud that 3PLs, brokers, shippers, and vendors must be aware of and prepared for:
Phishing and email domain copying to obtain shipment information and confirmations online.
Fictitious pickups where fraudsters disguise themselves as legitimate carriers to gain access to and steal shipments.
Trailer and container theft where thieves either steal the trailer or break into a trailer or container to steal freight and resell whatever they can.
Double brokering where fraudsters obtain a load from a broker and then brokers it again to another carrier.
Load Partialing when fraudsters cleverly unseal the doors (while going undetected) of a single-customer truckload trailer so they can add another customer’s freight to that load to maximize profit.
COOPERATION AND COORDINATION TO MITIGATE RISK
To battle cargo theft and fraud, there must be cooperation, coordination, and continual communication between customers and transportation management providers like eShipping. Shippers and vendors have the most firsthand contact with drivers and carriers on a load-by-load basis, so the term, “it takes a village” applies more than ever as we work together to deploy stringent precautions and operational processes amongst various teams involved.
At eShipping a cross-functional group representing Operations, Warehousing, Finance, Account Management, and Leadership Team are delivering on a fraud mitigation strategy centered around preventative action, stringent operational processes, new technology, effective communication, customer education, and employee training.
NEW TECHNOLOGY & OPERATIONAL MEASURES
eShipping has partnered with Highway®, a market leader in carrier vetting and monitoring to ensure our team is doing everything within our control to identify, report, and avoid deceptive tactics. Carrier profiles with contact verification, peer reviews, and pattern recognition help our team confirm carrier identities before a load is discussed or picked up. In addition to our use of the Highway platform, eShipping maintains strict carrier vetting procedures including requiring each carrier to sign a carrier-broker agreement while only allowing carriers with satisfactory or unrated safety ratings. Our team has also implemented capacity testing strategies that completely avoid load boards, so fraudsters no longer have visibility into cargo details.
REPORTING THEFT OR FRAUD
As a company, eShipping is often able to thwart attempts at theft and fraud with current preventative measures in place. But when an incident does occur, we are ready to mobilize our operations team to find a resolution and minimize the impact to your business. To report theft or fraud call our hotline at (816) 548-3779.
JOIN OUR WEBINAR JUNE 20, 2024 TO LEARN MORE
Register to join eShipping as we present Safeguard Your Supply Chain: Practical Steps to Address Cargo Theft and Fraud on June 20, 2024. We’re bringing together industry experts spanning transportation, warehousing, technology, insurance, and legal to discuss the current state of the industry, the impact of cargo theft and fraud, and tactical ways to mitigate risk across the supply chain.
Jordan Graft (Founder & CEO, Highway®)
David Pasco (VP of Sales, Roanoke Trade Insurance Group)
C. Fredric Marcinak (Founding Partner, Moseley Marcinak Law Group)
Jeff Tawney (Chief Operating Officer, eShipping)
Brandon Kraal (SVP of International, eShipping)
Luke Helm (SVP of Distribution, eShipping Distribution Services)