Tackling Cargo Theft and Cyber Threats in Trucking

In the milestone 50th episode of TruckSafe LIVE!, hosts Brandon, Tyler, and Jerad from Trucksafe and Childress Law welcomed Justin Austin, Senior Vice President at Aon Insurance and head of its Transportation and Logistics Practice Group, to discuss the escalating issues of cargo theft and cyber threats impacting the trucking industry in 2025. With cargo theft incidents surging and cyber attacks growing in sophistication, this episode provided critical insights into the current landscape, best practices for prevention, and actionable strategies for motor carriers, brokers, and shippers.

Austin, with a deep-rooted background in trucking, brought a wealth of expertise to the discussion. Growing up in a trucking family, with his father as an owner-operator for 36 years, Austin gained early exposure to the industry, from logbooks to dispatching. His career spanned roles at Total Quality Logistics (TQL), where he excelled as a broker and led the creation of TQL’s Mexico department, to leadership positions at USI and AON Insurance. At AON, Austin oversees transportation and logistics in the Midwest, managing 37% of the top 100 motor carriers, representing $1.5 billion in premiums and 9 billion annual miles driven. AON also insures major freight brokers and 70% of the top 10,000 retailers globally, providing a unique perspective on supply chain risks.

The Current State of Cargo Theft in 2025

Cargo theft has reached alarming levels in 2025, with Verisk CargoNet reporting nearly 3,800 incidents in 2024, a 26% increase from the previous year, resulting in $455 million in losses. However, experts, including Austin, estimate the true cost, including unreported cases and supply chain disruptions, could approach $1 billion annually in the U.S. and $35 billion globally. Only about 10% of cargo thefts are reported, complicating efforts to quantify the issue accurately.

Types of Cargo Theft

Austin categorized cargo theft into two primary forms:

1. Straight Theft (Traditional Methods): Traditional cargo theft involves physical hijackings or break-ins at truck stops, warehouses, or parking lots. While still common in regions like Brazil, where armed hijackings occur, straight theft in the U.S. often involves trailer break-ins, as seen in a recent Colorado case where $1.4 million worth of Nintendo Switch 2 consoles were stolen from a truck stop in Bennett. These incidents highlight vulnerabilities at rest areas and the need for enhanced security measures.

2. Strategic Theft with Cyber Components: The more prevalent and sophisticated form, strategic theft, incorporates cyber tactics such as:

   • Business Email Compromise (BEC): Criminals hijack email accounts to alter delivery instructions or impersonate legitimate carriers.

   • False Routing Documents: Fraudulent bills of lading or delivery instructions redirect loads to spoofed warehouses.

   • Identity Theft: Criminals use fake credentials or spoof FMCSA portal data to pose as legitimate carriers.

   • GPS Spoofing: Manipulating GPS data to mislead carriers about load locations.

   
   

   A notable example involved a $9 million theft of high-end perfume over five months, where criminals systematically removed products from boxes for resale. Another case saw stolen cell phone chips traced to 30 countries within 72 hours, underscoring the global reach of organized theft networks.

Hotspots and Recovery Challenges

Cargo theft hotspots include California, Texas, Georgia, and the Chicago area, where fleets should establish relationships with local cargo theft task forces. Reporting stolen cargo within 24 hours increases recovery chances to 80%, but delays significantly reduce success rates. Austin recommended partnering with private investigation firms like MIS, which boasts a 92% recovery rate when reported promptly, and adhering to standards from the Transportation Asset Protection Association (TAPA).

Cyber Threats in the Trucking Industry

Cyber threats have become a critical concern, with attacks like ransomware, phishing, and deepfake scams targeting fleets, brokers, and shippers. A recent cyber attack on UNFI, a whole foods distributor, disrupted IT systems and supply chain operations, highlighting the downstream impacts of such incidents. Austin emphasized that cyber threats are not just about data breaches but also facilitate cargo theft through tactics like TMS (Transportation Management System) fraud, where criminals bid on freight using compromised credentials.

Real-World Examples

• TruckSafe’s Experience: The hosts shared a personal incident where a voided check was published online, leading to $20,000 in fraudulent checks. Fortunately, their bank resolved the issue, but it underscored the risks of exposed financial data.

• Deepfake Scam: Austin recounted a case where a CFO’s voice, sourced from public podcasts, was used to trick an employee into transferring $47,000, illustrating the dangers of AI-driven deepfake technology.

Best Practices for Prevention

Austin and the hosts outlined actionable strategies for motor carriers, particularly small to medium-sized fleets with limited resources, to combat cargo theft and cyber threats:

Cargo Theft Prevention

1. Enhanced Verification at Pickup: Shippers and receivers should verify driver identities by scanning licenses, photographing trucks, and checking MC numbers and trailer placards. Many thefts occur because warehouses fail to confirm carrier legitimacy, allowing criminals to pick up loads unchallenged.

2. GPS Tracking and Video Surveillance: Fleets should equip trucks and trailers with GPS tracking and ensure warehouses retain video footage for at least 90 days, as some retailers, like one notorious for cargo theft, only keep footage for 30 days.

3. Collaboration with Law Enforcement: Safety directors should maintain contacts with cargo theft task forces in high-risk areas and leverage technologies like license plate readers, which have improved recovery rates in cities like Atlanta.

4. TAPA Certification: Brokers and carriers should pursue TAPA certification, which sets rigorous security standards and is increasingly required by major retailers like Walmart and Amazon.

Cyber Security Measures

1. Multi-Factor Authentication (MFA): Implementing MFA on all software platforms is a low-cost, high-impact way to prevent unauthorized access. Austin stressed that failing to use MFA is “asking for trouble.”

2. Staff Training: Regular training on phishing, social engineering, and protocol adherence is crucial. Austin cited a case where a broker ignored six red flags on Valentine’s Day, leading to a $50,000 cargo loss due to poor training.

3. Vetting Brokers and Customers: Small fleets should vet brokers using tools like Google, Broker Snapshot, and the Better Business Bureau to ensure legitimacy.

4. Cyber Insurance: Cyber insurance is increasingly affordable, with premiums dropping for seven consecutive quarters. Policies start at $7,000-$10,000 annually for small fleets and cover post-breach recovery, forensic accounting, and data protection. Carriers should leverage free training resources provided by insurers.

5. Cyber Assessments: AON offers free cyber assessments to identify vulnerabilities, with advanced options for on-site or remote evaluations. Austin encouraged fleets to get in touch with him for access to these resources.

Supply Chain Accountability

Austin highlighted a systemic issue: shippers often pass losses to carriers or brokers, who may lack sufficient cargo coverage (e.g., $100,000 coverage for a $250,000 load). This leaves gaps that shippers cover through stock throughput insurance, which has deductibles ranging from $100,000 to $1 million. To incentivize shippers, supply chain risk managers must recognize the true cost of theft, including remanufacturing and reshipping expenses, which could drive stricter security protocols.

The Role of Insurance and Due Diligence

Insurance plays a pivotal role in mitigating cargo theft and cyber risks. Austin noted that motor truck cargo insurance rates are rising due to theft, while stock throughput and property insurance rates are down 10-15% due to increased reinsurance capacity. For fleets considering mergers and acquisitions (M&A), cyber due diligence is now standard, with buyers scrutinizing cyber policies, training, and data protection measures. AON’s expertise in advising on major M&A deals underscores the importance of robust cyber frameworks.

Conclusion

Episode 50 of TruckSafe Live! underscored the urgency of addressing cargo theft and cyber threats in the trucking industry. With losses mounting and criminals employing sophisticated tactics, motor carriers must adopt proactive measures, from enhanced verification and GPS tracking to MFA and cyber training. Justin Austin’s insights, drawn from AON’s extensive experience, provided a roadmap for fleets to safeguard their operations and protect the supply chain.

About Trucksafe Consulting, LLC: Trucksafe Consulting is a full-service DOT regulatory compliance consulting and training service. We help carriers develop, implement, and improve their safety programs, through personalized services, industry-leading training, and a library of educational content. Trucksafe also hosts a livestream podcast on its various social media channels called Trucksafe LIVE! to discuss hot-button issues impacting highway transportation. Trucksafe is owned and operated by Brandon Wiseman and Jerad Childress, transportation attorneys who've assisted some of the nation’s leading fleets to develop and maintain cutting-edge safety programs. You can learn more about Trucksafe online at www.trucksafe.com and by following Trucksafe on LinkedIn, Facebook, Twitter, and YouTube. Or subscribe to Trucksafe's newsletter for the latest highway transportation news & analysis. Also, be sure to check out eRegs, the first app-based digital version of the federal safety regulations aimed at helping carriers and drivers better understand and comply with the regulations.