4 Ways Freight Brokers Can Help Prevent Cargo Theft

Cargo theft is a significant and persistent cause of loss in the transportation industry. For freight brokers, cargo theft represents more than a financial threat. The potential fallout from a single stolen shipment could lead to a rescinded contract, a lost customer, or lasting brand and reputational damage. Freight brokers can help protect themselves from cargo theft by properly vetting carriers, having a contractual risk transfer program, strengthening cybersecurity measures and working with an experienced cargo theft team.

Theft is growing. In 2025, cargo theft losses across the United States and Canada climbed to nearly $725 million, a 60% increase over 2024.¹ “Vetting carriers is one of the most important things a freight broker can do. We want brokers to have a process that confirms the carrier they are working with is who they say they are,” said Ryan Kiefer, National Director of the Travelers Special Investigations Group. This process can include using a screening team, carrier vetting platforms and creating tiered carrier pools, with the highest target commodity loads assigned to the most trusted carriers.

For more than 20 years, the cargo theft professionals in the Travelers Special Investigations Group (SIG) helped freight brokers understand risks and strengthen their strategies to protect their business. Straight cargo theft, where thieves physically go out and steal cargo, can be a risk for carriers who directly handle cargo. Freight brokers are often targeted by strategic cargo theft techniques, in which a cargo thief deceives them into turning over the cargo using identity theft or fictitious pickup schemes.  

Here are some ways freight brokers can help prevent cargo theft:

1. Properly vet carriers

With the fast-paced, transactional nature of the freight broker business, brokers may focus on readily available safety scores when choosing a carrier, but it’s also important to verify the credentials of the carrier. For example, thieves may pose as a legitimate trucking company, but a closer look might reveal that the contact information they provided is slightly off (or has recently changed), such as a phone number or email that’s close but not an exact match.

Part of a properly executed theft prevention process involves additional verification steps that may require extra time yet can help insulate the business from a potential loss. Call the phone numbers on the company website and verify that people on the other end represent the legitimate carrier company. Online resources including Carrier Software, CargoNet, the Central Analysis Bureau and the Safety and Fitness Electronic Records (SAFER) System can provide general safety and compliance information on motor carriers. Dedicated carrier vetting platforms go a step further, screening for fraud indicators and identifying red flags that are specifically associated with cargo theft. The Federal Motor Carrier Safety Administration (FMCSA) requires identity verification for new carrier, broker and freight forwarder registrants, which gives brokers another way to confirm that a carrier is legitimate before booking a load.²

Online vetting confirms a carrier on paper. Having a driver verification process at the pickup location can also add a layer of protection to current procedures. Rogue actors may pose as bona fide operators in fictitious cargo pickup schemes. It’s important to establish the identity of the carrier before authorizing a load transfer. Thieves may easily assume the identity of a reputable trucking company by fabricating bills of lading and driving away unchecked. In a double brokering scam, thieves may impersonate the freight broker and deceive the legitimate carrier into delivering cargo to a different location instead of its intended destination. Watch for red flags such as a pickup request that does not match a carrier’s usual routes, a phone number or area code that does not line up with the company’s listed location or last-minute changes to delivery instructions. Many of these schemes are avoidable with diligence. Re-vet carriers on a regular basis in accordance with the business’s operating model.

2. Strengthen contractual risk transfer programs

Before finalizing an agreement to hire a shipper or trucking company to deliver goods for a customer, freight brokers must first be aware of the liability they assume. For example, a contract with the shipper may hold the business completely or partially liable for a stolen or damaged load, putting the financial responsibility for a loss on the company’s shoulders. Consider putting a contractual risk transfer program in place to help ensure that risks lay with the party most able to control them.  

3. Protect your networks

Cyberattacks have become a way for malicious actors to gain access to company data and acquire the information they need to pass themselves off as genuine freight carriers. Cybercriminals may exploit vulnerabilities in software using email phishing scams or by stealing passwords from mobile device users. Business email compromise has become one of the most common entry points, with criminals sending messages from look-alike domains or hijacked accounts that closely match a real carrier or broker.³ Through unauthorized entry into company networks, hackers may then view pickup and delivery information. Not only do these schemes put the business at greater risk for cargo theft, but they also leave your company vulnerable to regulatory fines and legal action.

Consider shoring up network security with regular software updates and the latest patches. Train employees to recognize phishing and social engineering tactics. If employees access the company’s systems remotely, make use of a virtual private network (VPN) to encrypt communications as data moves between the business’s servers and off-premises locations. Implement a multifactor authentication (MFA) process for signing into the network. This two-step online security precaution involves the use of a strong password requirement combined with a  secondary code, such as a PIN number, to make it far more difficult for hackers to impersonate user credentials.

4. Work with an experienced cargo theft team

Freight brokers often think that cargo theft won’t happen to them, until it does. In the event of a theft, time is of the essence when attempting to recover a stolen load and averting potential damages. Early detection, immediate reporting and thorough follow-up greatly increase the odds of tracking down stolen cargo. An experienced team of cargo theft professionals, with a proven history of results, can help improve recovery outcomes.

Travelers maintains a team of Claim professionals who are available round the clock and exclusively dedicated to the needs of freight brokers and their stakeholders. After a claim is reported, the Travelers Special Investigations Group deploys its experience in recovering stolen loads. Since 2009, SIG has recovered more than $130 million⁴ in stolen goods. While the group uses time-tested methods to track down thieves after a claim is filed, it also takes a consultative approach to loss prevention by assessing customers’ security measures and recommending ways to improve them.

Protect your business from cargo theft

To protect a business from financial loss due to cargo theft, it’s best to know how thieves operate and what their latest schemes entail. Tap into the resources of a partner with deep experience in the risks freight businesses face. Find an independent agent to learn more about how Travelers can help you take steps to prevent cargo theft.

Sources:
^1,3 https://www.ic3.gov/PSA/2026/PSA260430  
²  https://www.fmcsa.dot.gov/registration/identity-verification  
⁴ Travelers Special Investigation Group internal data, 2009-2025