Cutting-edge sensor tech targets cargo theft as losses hit $725M

Wiliot, founded in 2017, develops battery-free, paper-thin Bluetooth tags that can be embedded into products to provide real-time supply chain visibility. The company is headquartered in Israel and maintains major operations in San Diego.

Cargo theft becoming more targeted, sophisticated

According to a recent report from Verisk CargoNet, 3,594 supply chain crime events were recorded in the U.S. and Canada in 2025, with confirmed cargo theft incidents rising 18% year over year and the average theft value increasing 36% to $273,990, driven by organized criminal groups targeting higher-value freight.

Khoshniyati said several structural changes in logistics are making supply chains more vulnerable to theft, including the growth of e-commerce and increasingly complex distribution networks.

“Many things are changing. You look at the post-COVID, the amount of dependency there is for items that are purchased online, the uptick that you see with e-commerce and then the logistics as a byproduct of those items,” he said. “That’s a foundational thing that’s leading to some of these issues.”

He added that theft is not always traditional cargo theft but often involves diversion and breakdowns in supply chain processes.

“Diversion is just getting worse and worse over the years,” Khoshniyati said. “It’s not necessarily black market type diversion, it’s gray market. Distributors are not doing the things they’re supposed to do, processes are getting broken down with 3PLs — there’s so many different variables behind it.”

From trailer tracking to item-level visibility

Traditional cargo tracking often relies on GPS tracking at the trailer level, which can leave visibility gaps when freight is moved, misrouted or handled incorrectly inside warehouses or distribution centers.

Wiliot’s ambient IoT technology uses battery-free sensor tags that can detect location, movement, temperature and other conditions at the pallet, case or item level.

“Instant,” Khoshniyati said when asked how quickly the system can detect a shipment problem. “Wrong truck, wrong location — pull it off the dock and place it in the right location. We’re getting into the predictive era.”

He said the system can alert workers if a pallet is loaded onto the wrong truck or if a shipment is diverted to the wrong location before it leaves a facility, helping companies correct mistakes before they become losses.

Data sharing reduces disputes, insurance risk

Beyond theft detection, item-level tracking can also reduce disputes between shippers, logistics providers and insurers by creating a detailed record of when and where freight moved through the supply chain.

“We have full visibility. We can give the metrics and we can give all the receipts that it left on this time, it arrived on this time and through the process,” Khoshniyati said. “The brands feel good. The 3PLs feel good. All the insurers that are kind of overarching on this, they feel good.”

Food and beverage products were the most targeted cargo category in 2025, with 708 thefts, a 47% increase from 2024, while metals theft rose 77%, according to CargoNet’s report.

Ambient IoT could become standard security layer

As cargo theft becomes more organized and technology-driven, Khoshniyati said real-time sensing and tracking could become a foundational layer of supply chain security.

“I see it foundational to everything that’s happening,” he said. “You get that level of visibility and assurance, and everybody’s kind of winning through the process.”

He added that future supply chain security systems could combine real-time sensor data with platforms such as warehouse management systems, enterprise software and blockchain to create multiple layers of verification and fraud prevention across supply chains.