Cargo theft has evolved from opportunistic hijackings to strategic, digitally enabled fraud, revealing the hidden costs of freight fraud across the industry. Modern criminals don’t need guns- they use VoIP spoofing, fake documents, and digital infiltration to intercept freight midstream.
In 2024, strategic theft accounted for nearly one‑third of all cargo losses, up dramatically from just 8% in 2020. Criminals routinely hack into registration systems, change phone numbers, emails, or physical addresses in the FMCSA portal, and pose as legitimate carriers. Then, they’re able to divert high-value goods, often without raising immediate suspicions.
According to industry publication FreightWaves, one reason frauds like these continue to thrive? Lack of enforcement. “Part of the blame lies with the agency designed to prevent it, the FMCSA. Existing laws…explicitly require the FMCSA to vet brokers thoroughly, yet these requirements, like mandatory knowledge tests and documented experience, remain largely unenforced.”
Identity Spoofing & Fraudulent Pickups
Identity spoofing occurs when thieves steal or fake MC/DOT numbers, set up cloned email domains, or create synthetic IDs, ultimately mixing real and fabricated data points, so they can masquerade as real carriers.
These identity-based attacks fuel fraudulent pickups, now a growing trend. Criminal networks track shipment schedules and locations, prepare forged paperwork and falsified uniforms, and pick up cargo before the legitimate carrier arrives. This “fictitious pickup” method allows thieves to steal full loads, like electronics, cosmetics, or food, often in broad daylight.
Digital Vulnerabilities in Broker Systems
Digital weaknesses also plague broker platforms. These tactics expose not only security gaps but also the hidden costs of freight fraud, as companies lose cargo, time, and trust in digital systems. On load boards, hackers deploy fake listings using stolen credentials with near-perfect impersonation—right down to matching email, phone, and MC numbers—resulting in “double-brokered” stolen freight. These incidents highlight the hidden costs of freight fraud in operational inefficiencies, reputational damage, and recovery efforts.
Highway’s Fraud Index revealed over 400,000 attempted frauds in Q1 2025 alone—including spoofed emails, compromised inboxes, and caller-ID manipulation. In one dramatic incident dubbed the “yogurt heist,” a load of refrigerated dairy was stolen using stolen MC numbers and fake emails, with hackers demanding $40,000 in ransom.
The Role of Technology and Regulation to Combat Freight Fraud
Criminals often exploit common business tech, like VoIP, GPS jamming, fake digital identities, and phishing, to reroute or conceal shipments. According to NICB, cargo theft soared 27% in 2024 and is predicted to increase another 22% by the end of 2025. The average loss per incident is more than $200K.
Regulatory bodies like FMCSA are taking action, like introducing stricter identity verification, including facial ID and ID-checks for carriers. Still, enforcement lags behind fraudsters’ speed and sophistication.
As threats have grown more sophisticated, the need for intelligent, real-time security solutions has become increasingly critical. Remote video monitoring has emerged as a transformative tool, allowing organizations to safeguard assets, improve operational efficiency, and measure the return on investment (ROI) in tangible, data-driven ways.
Reducing Theft and Losses
One of the most measurable impacts of remote video monitoring is the reduction in theft and property damage. The logistics industry loses billions of dollars annually to cargo theft, often at unsecured yards, parking lots, and loading docks. With remote video monitoring, surveillance cameras equipped with AI analytics and human oversight can detect suspicious activity and trigger real-time interventions, including police dispatch. These rapid-response capabilities have been shown to deter criminal behavior before loss occurs, translating directly into cost savings.
Security events and intervention reports generated by RVM providers help quantify these outcomes. For example, companies can track how many break-in attempts were thwarted, how many trespassers were dispersed, and how many police responses resulted in arrests. Over time, these reports offer a measurable decline in incidents—a direct correlation to improved security posture.
Enhancing Operational Visibility
Beyond security, remote video monitoring supports operational excellence. Cameras positioned throughout yards, depots, and warehouses can offer logistics managers 24/7 visibility into activities like truck arrival and departure times, loading processes, and traffic flow. This visibility allows teams to spot bottlenecks, enforce procedures, and improve scheduling.
When paired with analytics tools, remote video monitoring can help measure dwell times, track assets, and monitor compliance with safety procedures. Video evidence of these metrics is not just useful for internal reviews; it can also support regulatory compliance and help prove due diligence in case of insurance claims or audits.
Lowering Liability and Insurance Costs
The presence of proactive video monitoring has also been linked to reductions in liability claims. When incidents like vehicle collisions, worker injuries, or unauthorized entries occur, high-definition footage and time-stamped data can offer a clear, impartial record. This evidence can help quickly resolve disputes and reduce the risk of fraudulent claims.
Some insurance providers recognize the value of live-monitored video and offer premium reductions to businesses that deploy these systems. Over time, those savings—paired with the prevention of costly legal settlements—can significantly improve the ROI of a video monitoring system.
Supporting Business Continuity and Resilience
Addressing the hidden costs of freight fraud can help protect revenue, reputation, and long-term resilience. In the transportation and logistics industry, even short disruptions can cascade into costly delays across the supply chain. By detecting risks early, from equipment tampering to safety violations, remote video monitoring acts as a business continuity asset. Remote operators can flag and escalate issues before they interrupt workflows, helping ensure consistent uptime and service delivery.
Remote video monitoring is more than just a security solution- it’s a strategic investment in operational resilience and cost control. When measured across key metrics like theft prevention, liability reduction, insurance savings, and productivity gains, remote video monitoring delivers clear and compelling value for transportation and logistics organizations seeking to stay secure, efficient, and competitive.
Interested in learning more about how remote video monitoring can help secure your transportation and logistics facility? Contact us today and book your free demo.
