Freight fraud prevention is becoming a critical priority for the US logistics industry as cargo criminals use stolen identities, compromised business accounts and deceptive pickup schemes to target valuable shipments. New data reported by FreightWaves shows why a decline in reported incidents should not automatically be interpreted as a decline in financial risk.
According to FreightWaves’ October 19 report, “Freight Fraud Gets More Strategic Heading Into Peak Season”, cargo theft incidents fell by roughly a quarter year over year in the second quarter of 2026. Yet estimated losses climbed to $304.6 million, more than twice the $135.7 million recorded during the same quarter in 2025.
The figures highlight a troubling imbalance. Criminals do not necessarily need to steal more shipments to inflict greater damage. Targeting a smaller number of high-value loads can still produce substantial losses.
For logistics businesses preparing for the busiest shipping period of the year, the message is clear: shipment tracking alone is not enough. Companies also need reliable ways to verify carriers, authenticate pickup instructions, secure business communications and respond quickly when something does not look right.
Background and Context: Why Freight Fraud Is Changing
Freight transportation depends on a network of shippers, brokers, motor carriers, dispatchers, drivers, warehouses and customers. Each shipment involves multiple handoffs, documents and communications. That complexity helps goods move efficiently, but it can also create opportunities for fraud.
A criminal who can impersonate a legitimate carrier or manipulate shipment instructions may be able to redirect cargo without breaking into a warehouse or physically hijacking a truck.
The Federal Motor Carrier Safety Administration (FMCSA) warns that broker and carrier fraud can involve unauthorized use of a motor carrier’s USDOT number or an individual acting as a broker without proper registration.
The FBI’s cargo theft guidance identifies several methods used in these schemes, including identity theft, fictitious pickups, account takeovers, double brokering and fraudulent carriers.
These methods can overlap. For example, a compromised email account may expose legitimate shipment information. A fraudster can then use that information to impersonate a trusted transportation partner, arrange a pickup or change a shipment’s destination.
This is why modern freight fraud prevention has to address both physical security and digital identity. A locked trailer cannot protect a shipment if the wrong person has been authorized to collect it.
Latest Update: What the 2026 Cargo Theft Numbers Reveal
The second-quarter figures offer a useful look at how the risk is evolving ahead of the US peak shipping season.
Reported incidents declined, but estimated losses increased
Verisk CargoNet documented 677 supply chain theft incidents across the United States and Canada during Q2 2026, a 26% decline from Q2 2025.
However, estimated losses increased from $135.7 million to $304.6 million. The average reported commodity value reached approximately $564,009, although a small number of multimillion-dollar thefts significantly influenced that average.
These findings are detailed in CargoNet’s Q2 2026 cargo theft analysis.
The numbers should be interpreted carefully. They cover documented incidents, not every cargo crime, and the loss estimates are not a complete accounting of all freight-related fraud. They also combine data from the United States and Canada rather than measuring the US market alone.
Even with those limitations, the contrast between fewer reported incidents and higher estimated losses shows why companies should consider both the frequency and severity of theft when assessing risk.
High-value cargo remains attractive to criminals
CargoNet’s analysis points to metals and enterprise technology as categories associated with major losses. These products can carry substantial value in relatively compact shipments and may have established resale markets.
Copper and other metals can be especially attractive targets. Electronics, networking equipment and enterprise computing components can also represent significant exposure for shippers.
The practical implication is not that every shipment in these categories is at equal risk. Rather, businesses moving high-value cargo should evaluate whether their security procedures are appropriate for the value, destination, route and handoff arrangements of each load.
Identity fraud can undermine conventional security
FreightWaves’ October 19 report highlights the role of impersonation and compromised accounts in modern freight crime.
A fraudster may use stolen credentials, fake carrier information or manipulated pickup instructions to make an unauthorized transaction appear legitimate. In some cases, a real carrier’s identity may be used without the company’s knowledge.
That creates a difficult situation for legitimate logistics providers. A carrier’s name, operating authority or paperwork may appear authentic even when the person arranging or collecting the shipment is not authorized.
Freight fraud prevention therefore requires more than checking whether a company name exists. It requires verifying that the actual party handling the load is connected to the legitimate business and authorized for that specific shipment.
Freight Fraud Prevention: 7 Practical Steps for Logistics Companies
No single control eliminates cargo theft or fraud. The strongest approach combines carrier verification, secure communication, physical checks, monitoring and a clear response plan.
1. Verify carriers using independent contact details
Before assigning a load, confirm the carrier’s identity and operating information through independent sources.
The FMCSA recommends using its Safety and Fitness Electronic Records (SAFER) system to verify carrier and broker information. If a telephone number supplied by a transportation partner does not match the number listed in SAFER, the agency advises contacting the company using the independently listed number.
Logistics teams should verify relevant information such as:
- The legal business name and USDOT number.
- The carrier’s operating status and applicable authority.
- Insurance details with the insurer or authorized insurance contact.
- The company’s established telephone number and business domain.
- Whether the person arranging the shipment is authorized to represent the carrier.
Do not rely exclusively on documents or contact details supplied in a new email. Fraudsters can copy legitimate branding and provide convincing but false paperwork.
2. Authenticate changes to pickup and delivery instructions
Last-minute changes deserve particular attention, especially when they involve the driver, truck, destination, pickup window or receiving facility.
A request to redirect a load should be verified through a known contact channel, not simply accepted because it arrived in a familiar email thread.
For example, if a dispatcher requests a new delivery address, a team member should call a previously verified contact and confirm the change. For high-value freight, companies can require a second person to approve unusual instructions.
This approach adds a verification step at the point where unauthorized changes could otherwise result in cargo being released to the wrong party.
3. Match the driver, truck and shipment records
Carrier verification before dispatch is only one part of the process. The company must also confirm that the vehicle and driver arriving at the pickup location match the authorized shipment details.
FMCSA recommends documenting driver and vehicle information, checking the truck and trailer identifiers, and taking photographs when appropriate.
At pickup, staff can compare:
- Driver identification and the dispatch details.
- Tractor and trailer registration or plate information.
- The carrier name displayed on the vehicle.
- Load or pickup reference numbers.
- The authorized pickup appointment and destination.
A mismatch does not automatically prove fraud, but it should trigger a pause while the discrepancy is investigated. A shipment should not be released merely because the driver knows the shipment number or presents paperwork that looks convincing.
4. Protect email accounts and transportation systems
Freight fraud can begin long before a truck arrives at a warehouse. Compromised email accounts and business systems can expose shipment details or give criminals an opportunity to impersonate trusted partners.
Companies should make account security part of their freight fraud prevention strategy.
Practical measures include:
- Requiring multifactor authentication for business email and transportation-management systems.
- Using unique passwords and a managed password system.
- Restricting account access according to job responsibilities.
- Training staff to recognize suspicious links, attachments and urgent requests.
- Reviewing unexpected changes to payment instructions, carrier details or shipment destinations.
- Removing access promptly when employees or contractors leave the business.
Businesses should also have a clear process for reporting suspicious emails. Employees need to know whom to contact when they suspect an account has been compromised.
The FBI’s cargo theft guidance explains how cyberattacks and compromised business information can support fraudulent pickups and shipment diversion.
5. Apply stronger controls to high-value shipments
Security measures should reflect the potential loss. A high-value electronics load may warrant more frequent location checks, additional identity verification and stricter rules for route or delivery changes than a routine low-value shipment.
Companies can consider measures such as:
- More frequent shipment-status confirmations.
- Geofencing and alerts for unexpected stops or route deviations.
- Sealed trailers and documented seal checks.
- Approved-carrier lists for sensitive freight.
- Restricted disclosure of shipment details to people who need them.
- Additional verification before a load is released or redirected.
These controls should be proportionate to the risk and the operational needs of the shipment. Excessive checks can slow freight unnecessarily, while insufficient checks may leave valuable cargo exposed.
The objective is to identify unusual activity early enough to investigate before the shipment is lost.
6. Train warehouse and dispatch teams to stop suspicious pickups
Even strong systems depend on people recognizing when a transaction does not look right.
Warehouse personnel should know how to escalate discrepancies without being pressured to release freight because a driver is waiting or a schedule is tight.
Warning signs can include:
- A driver arriving under a different carrier name.
- An unexpected change to the pickup location.
- A telephone number that differs from verified company records.
- Pressure to bypass normal checks.
- Documents containing inconsistent names or identifiers.
- A sudden destination change that cannot be confirmed independently.
A documented escalation process helps staff act consistently. It should identify who has authority to stop a pickup, who verifies the carrier and who contacts the shipper or broker.
Training should also make clear that a legitimate carrier or driver may be an unwitting participant in a fraudulent transaction. Investigations should focus on verifying facts rather than assuming every discrepancy indicates deliberate wrongdoing.
7. Create a rapid incident-response plan
When a shipment goes missing or fraud is suspected, speed matters. Delayed reporting can reduce the chance of locating the cargo and complicate communication among the shipper, broker, carrier, insurer and law enforcement.
A response plan should specify who will:
- Stop or pause related shipments where appropriate.
- Contact the shipper, broker, carrier and receiving facility through verified channels.
- Preserve emails, call records, tracking data, documents and video footage.
- Notify the cargo insurer and relevant service providers.
- Contact law enforcement and report the incident to the appropriate agencies.
- Review whether other loads or business accounts may be affected.
The FMCSA provides reporting guidance on its broker and carrier fraud page, including the FMCSA Contact Center and the National Consumer Complaint Database.
Companies should also consult their insurer and legal advisers about contractual obligations, evidence preservation and reporting deadlines.
Expert Insights and Analysis: Why Verification Matters More Than Ever
The data and agency guidance point to a common theme: freight security depends on knowing who controls the shipment at each stage.
Historically, cargo security discussions often focused on physical protections such as locks, alarms, secure parking and surveillance. Those measures remain important, but they cannot independently address a fraudster who has persuaded a warehouse to release a shipment using stolen credentials.
The identity of the person arranging a load, the authorization of the driver collecting it and the integrity of the instructions governing its movement all matter.
FreightWaves’ reporting also cautions against treating a single quarter of lower incident counts as evidence that the broader risk has passed. A reduction in recorded incidents is welcome, but a more durable assessment requires additional data over time.
For logistics leaders, this means evaluating fraud prevention as an operating process rather than a one-time technology purchase. The important questions are practical:
- Are carrier details verified independently?
- Can employees authenticate a last-minute change?
- Are unusual pickup conditions escalated consistently?
- Can the company quickly identify the people who handled a shipment?
- Does the incident-response plan work outside normal business hours?
A company does not need to treat every shipment as an emergency. It does need controls that make suspicious transactions harder to complete and easier to detect.
Broader Implications: The Cost of Freight Fraud Goes Beyond Stolen Cargo
Cargo theft creates more than a direct loss of goods. A serious incident can lead to missed delivery appointments, replacement shipments, insurance claims, customer disputes, operational disruption and additional investigation costs.
For a manufacturer, missing components may delay production. For a retailer, a stolen shipment may leave shelves empty during a seasonal demand spike. For a logistics provider, a fraud incident can damage relationships with customers and legitimate transportation partners.
There can also be uncertainty about responsibility. A shipment may involve a shipper, broker, contracted carrier, subcontracted driver and warehouse. When a fraudulent pickup occurs, those parties may disagree about what was authorized and who should bear the loss.
That is why accurate records and clear procedures matter. Documented carrier verification, approved communication channels and reliable pickup records can help companies investigate incidents and establish what happened.
Technology can help, too. Transportation-management systems, identity checks, GPS tracking and automated alerts can support visibility and consistency. But software is not a substitute for sound procedures, and an alert is useful only if someone has responsibility for reviewing and acting on it.
For related business coverage, The Tech Marketer could connect this article with an existing story on digital security and business risk. Replace the homepage URL with a relevant published article link before publication.
Related History: From Physical Cargo Theft to Cyber-Enabled Fraud
Cargo theft has long included physical theft from trucks, trailers, warehouses and rail facilities. Modern freight operations still face those risks, but digital communication has added other ways to manipulate a shipment.
The FBI identifies cyber-enabled cargo theft as a method in which phishing and other cyberattacks can provide access to sensitive business information. Criminals may use that information to create convincing shipping paperwork, impersonate legitimate parties or arrange fictitious pickups.
The result is a convergence of physical and digital security. A compromised email account can lead to a real truck collecting real goods from a real warehouse. The physical movement may appear routine even though the authorization behind it is fraudulent.
This makes freight fraud prevention a cross-functional responsibility. Transportation operations, IT security, warehouse teams, finance, customer service and executive leadership may all need to participate.
The lesson is not that physical security has become irrelevant. It is that the shipment’s digital identity and the authority behind each instruction deserve protection alongside the cargo itself.
What Happens Next?
As US logistics companies move into the peak shipping period, freight fraud prevention is likely to remain an important operational concern. The Q2 2026 loss figures highlight the financial consequences of high-value theft, while federal guidance shows the role of identity verification and secure communications.
Businesses should take several steps before shipment volumes rise:
- Review carrier records: Confirm contact information and operating details through independent sources.
- Audit high-value freight procedures: Identify loads that warrant additional checks or monitoring.
- Test communication controls: Make sure staff know how to verify changes to pickup, destination and payment instructions.
- Refresh employee training: Include realistic examples of suspicious carrier details and unauthorized pickup requests.
- Check response readiness: Confirm who contacts the insurer, law enforcement and trading partners if a load goes missing.
- Measure performance: Track attempted fraud, verification failures, suspicious changes and incident response times, not just confirmed thefts.
The industry should also watch future CargoNet reporting to determine whether the decline in recorded incidents continues and how estimated losses change. One quarter alone cannot establish a lasting trend.
Conclusion
Freight fraud is no longer just a problem of stolen trailers or weak warehouse security. Impersonation, compromised accounts and deceptive pickup instructions can turn ordinary logistics processes into opportunities for theft.
The Q2 2026 figures reported by CargoNet show why companies should look beyond incident counts. Documented theft reports declined year over year, but estimated losses rose to $304.6 million, with a small number of very large thefts contributing significantly to the total.
Effective freight fraud prevention starts with independent carrier verification and continues through secure communications, driver and vehicle checks, shipment monitoring and rapid incident response.
For US shippers, brokers, carriers and warehouse operators, the practical priority is straightforward: verify who is authorized to move the load, confirm unusual instructions through trusted channels and make sure every employee knows when to stop a questionable transaction.
As peak shipping season approaches, those controls can help businesses reduce exposure and respond more effectively when something goes wrong.
FAQ
1. What is freight fraud prevention?
Freight fraud prevention refers to the procedures and security controls used to prevent criminals from impersonating carriers or brokers, redirecting shipments, arranging fictitious pickups, exploiting compromised accounts or otherwise obtaining freight through deception.
2. Why is freight fraud a concern during peak shipping season?
Higher shipment volumes can increase the number of transactions, handoffs and time-sensitive decisions logistics teams must manage. That can make consistent verification particularly important. The exact seasonal effect varies by business and shipment type, so companies should assess their own exposure rather than assume every peak season produces the same increase in fraud.
3. How can companies verify a freight carrier?
Companies can check carrier and broker information through the FMCSA’s SAFER system, independently confirm contact details, verify insurance with the relevant provider and compare driver and vehicle information against the authorized shipment records.
4. What is a fictitious pickup?
A fictitious pickup occurs when someone impersonates an authorized carrier or otherwise deceives a shipper or warehouse into releasing freight to an unauthorized party. The cargo is collected under false pretenses and may then be diverted or stolen.
5. What is double brokering in freight?
Double brokering generally refers to a load being re-brokered to another transportation provider without the necessary authorization or in violation of the parties’ agreement. Fraudulent schemes can use this process to obscure who is actually responsible for the shipment or redirect cargo. Not every transfer of transportation work is fraudulent, so the contractual and authorization details matter.
6. What should a company do if it suspects freight fraud?
Pause the questionable transaction where safe and operationally appropriate, verify the details through trusted contacts, notify the relevant shipper and transportation partners, preserve evidence and contact the insurer and appropriate authorities. The FMCSA provides specific guidance on reporting suspected broker and carrier fraud.
7. Which shipments should receive additional security checks?
Companies should consider enhanced controls for high-value or theft-sensitive cargo, including electronics, enterprise technology and metals. Risk assessment should also account for route, destination, carrier history, pickup conditions and the potential impact of a lost shipment.
Sources & References
- FreightWaves: Freight Fraud Gets More Strategic Heading Into Peak Season. October 19, 2026. Reporting on changing cargo theft tactics and the Q2 2026 loss figures.
- Verisk CargoNet: Cargo Theft Losses More Than Double to $304 Million in Q2 Despite a Drop in Thefts. Primary source for the incident count and estimated losses.
- Federal Motor Carrier Safety Administration: Broker and Carrier Fraud and Identity Theft. Official guidance on carrier verification, prevention and reporting.
- Federal Bureau of Investigation: Cargo Theft. Overview of physical and cyber-enabled cargo theft methods.
- FBI Internet Crime Complaint Center: Cyber-Enabled Strategic Cargo Theft Surging. Public-service announcement on identity abuse, compromised accounts and shipment diversion.
