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Cargo Theft: A Growing Threat Impacting Businesses & Consumers

August 27, 2025

In the shadows of our nation’s supply chains, a dangerous and escalating threat looms: cargo theft.

For years, truckers, businesses, and consumers have felt the impact of stolen goods in the form of financial losses or disrupted operations. Today, cargo theft has evolved from an occasional nuisance into a highly organized criminal enterprise costing billions of dollars annually. And if left unchecked, its effects will ripple even further through the economy, leaving everyday Americans to absorb rising costs.

Why Cargo Theft Matters

Nearly every industry has been affected. Electronics, clothing, food, energy drinks…it seems like nothing is off-limits. Here are some staggering numbers from the National Insurance Crime Bureau (NICB):

  • Cargo theft costs the U.S. economy up to $35 billion per year.
  • The average loss per theft now exceeds $200,000.
  • In just the first quarter of this year, 505 cargo theft incidents were reported, a 36% increase from the same period last year.

How Thieves Operate

Cargo theft comes in two main forms:

  1. Straight Theft: Criminals physically steal goods from shipments through burglary, pilferage, or hijacking.
  2. Strategic Theft: Fraud and deception are used to obtain goods without force. Tactics include:
    • Impersonating legitimate carriers or brokers
    • Spoofing websites and emails
    • Using insider information to reroute or intercept shipments

In some cases, thieves even establish “legitimate” warehouses or online storefronts to re-sell stolen products. Goods may be exported, repackaged, and sold, sometimes for more than their original market value.

The Rising Costs for Businesses and Consumers

Cargo theft doesn’t just hurt businesses. When manufacturers and retailers face losses, they often have to adjust pricing to offset costs, which then trickles down to consumers.

Adam Blanchard, CEO of Double Diamond Transport and Tanager Logistics, testified before Congress about the devastation theft can cause:

“…the fraudsters used our identity to steal high-value freight, including truckloads of Red Bull, which were then diverted to suspicious warehouses in California and ostensibly shipped out of the country. Despite reaching out to our insurance provider, law enforcement, and even the Department of Homeland Security, we were met with indifference and red tape. The fraudulent actors used VPNs and domain spoofing techniques, making it nearly impossible for us to track them down on our own.”

A National Security Concern

Cargo theft has now drawn federal attention. According to the July 2025 Cargo Security Index:

  • Indiana saw a 75% increase in theft incidents.
  • Texas was up 40%, and Illinois saw a 35% increase.
  • High-value items like consumer electronics and household goods are frequent targets.

Federal lawmakers introduced the Safeguarding Our Supply Chains Act in 2024, and aim to create a national Supply Chain Crime Coordination Center, with an allocation goal of $100 million over four years to fight theft.

Insurance and Cargo Theft: What You Should Know

While certain types of insurance may help offset losses from cargo theft, coverage varies widely depending on the policy type and the specifics of the incident. Businesses involved in shipping or receiving goods should:

  • Review their current cargo and property coverage with their Robertson Ryan Insurance Agent.
  • Confirm which theft scenarios are covered (e.g., theft by deception may be excluded).
  • Understand claim reporting procedures and timeframes.

How Businesses Can Protect Themselves

The National Insurance Crime Bureau (NICB) recommends:

  • Screen employees and partners: Run background checks and verify transportation partners.
  • Train staff: Educate drivers and employees on theft prevention and hijack awareness.
  • Secure shipments: Avoid stopping within the first 200 miles of pickup and park in secure, well-lit areas.
  • Leverage technology: Use GPS tracking, immobilizers, advanced security seals, and alarm systems.
  • Conduct audits: Regularly review security measures and vet processes for gaps.

Read NICB’s full list of recommendations here.

The Bottom Line

Cargo theft is a sophisticated and growing threat. By staying informed, improving security measures, and working closely with law enforcement and your Robertson Ryan Insurance Agent – businesses and consumers can help reduce the impact of this billion-dollar criminal enterprise.

*This blog post is for general informational purposes only and does not constitute insurance advice. Always consult your insurance professional for guidance specific to your business or personal policy.