FBI’s Memphis Cargo Theft Task Force warns cyber schemes put millions in freight at risk

Cargo thieves know what they want

Earlier investigations often involved crimes of opportunity, Baker told FreightWaves. Thieves might encounter televisions, shoes or another valuable commodity. Physical access often determined what criminals took. Technology has changed that model.

Computer intrusions can expose shipment information before pickup. Social engineering offers another path toward sensitive details. Criminals can use that intelligence to identify specific high-value freight. Baker sees those methods in current threats facing investigators.

“They know exactly what they’re picking up,” Baker told FreightWaves. That preparation can make a fraudulent pickup appear legitimate. Employees may believe the correct carrier has arrived. The physical handoff can become the final step.

“Through cyber-enabled means, the theft has been done even before that truck arrives,” Baker explained. “All they have to do is have the truck arrive.” He added, “They’ve already duped everybody.” Criminals can then “drive away with millions and millions of dollars worth of merchandise.”

Baker could not discuss ongoing FBI investigations. However, he confirmed current matters involving extremely high-value goods and cyber-enabled methods. Those cases can combine digital deception with physical cargo theft. Investigators now confront both parts of the scheme.

Baker also has a cybersecurity background. He compared cargo threats with attacks against organizations that have weak digital defenses. Criminals often seek businesses where poor controls offer easier opportunities. Transportation companies can present those openings.

“Bad guys are savvy to this,” Baker explained. “They’re going to go to where they can get the quick wins.” Those vulnerabilities extend beyond locks, seals and physical security. “The industry’s cybersecurity is going to have to be taken up several notches.”

Where the process can break down

Baker also described vulnerabilities between brokers, carriers and shipping facilities. Each participant may believe another party completed the necessary checks. Criminals can exploit those assumptions through impersonation or compromised information. That creates an opening inside an otherwise normal transaction.

“The broker is kind of onto the next deal,” Baker explained. “They’ve done their part and they think they’ve made a good deal with a legitimate company.” Meanwhile, the shipping facility expects an authorized truck. That separation creates risk.

“The company who is releasing the goods thinks the legitimate company has shown up,” Baker added. “But they’re just disguised as that carrier.” Employees can then release valuable merchandise to the wrong driver. By that point, the fraud has become a cargo theft.

Baker repeatedly returned to verification when discussing prevention. Companies can add checks before employees complete sensitive transactions. Other industries already use similar controls for significant financial activity. Transportation businesses can apply those same principles.

“The bottom line behind it is, of course, there’s a ton of data,” Baker explained. “But it’s really verify, verify, verify.” Training can also help employees recognize threats. Repeated exercises show whether those lessons work.

Baker pointed to phishing campaigns as an example. Some organizations initially see 60% of employees click suspicious test messages. Continued education can eventually reduce that figure to 2%. He views those results as evidence that awareness can change behavior.

“A lot of what we’re talking about is changing the culture of some of these organizations,” Baker noted. He also identified the National Motor Freight Traffic Association as a cybersecurity awareness partner. Stronger defenses can require investment, but training still matters. “It’s a lot of just the human element and just being aware, being vigilant, and changing things.”

Nearly two decades after narrowing its mission, the Memphis Cargo Theft Task Force faces a different criminal landscape. Investigators still pursue major theft affecting interstate commerce. Cyber intrusions and social engineering now add another layer. Baker’s message remains simple: “Verify, verify, verify.”

Why it matters

Cargo theft no longer starts when criminals reach the freight. Cyber intrusions and impersonation can compromise a shipment before pickup, making verification throughout the process increasingly important.

CFCO

In my opinion, the Certified Fraud Compliance Officer course can help teams recognize many warning signs Baker described. Consistent training and verification can help stop suspicious activity before freight leaves the dock.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

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