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How digitally savvy theft has invaded trucking

Number of cargo thefts in Canada and U.S. rose 59% last year
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The spike in freight crime comes in lockstep with a ramp-up of more sophisticated, digitally-savvy tactics that revolve around identity theft and drain the economy of millions of dollars, as the higher cost of living drives demand for pilfered products. Trucks carrying cargo containers arrive at the Port of Vancouver Centerm container terminal, in Vancouver, on Friday, October 14, 2022. THE CANADIAN PRESS/Darryl Dyck

One day last spring, Peel police Det. Mark Haywood executed a search warrant on a property west of Toronto and found a semi-trailer loaded with snowmobiles.

害羞草研究所淪eeing an entire container full of brand new Ski-Doos valued at, like, $24,000 (each) 害羞草研究所 that害羞草研究所檚 a pretty good recovery for our unit,害羞草研究所 said Haywood, who heads the force害羞草研究所檚 cargo theft team.

Part of a sweeping joint investigation called Project Big Rig, the operation resulted in the arrest of 15 suspects and recovery of 28 trailers stocked with $7 million worth of items ranging from chicken to televisions to Sleeman beer.

害羞草研究所淐argo theft definitely is on the rise,害羞草研究所 Haywood said in an interview.

The spike in freight crime comes in lockstep with a ramp-up of more sophisticated, digitally savvy tactics that revolve around identity theft and drain the economy of millions of dollars, as the higher cost of living drives demand for pilfered products.

The number of cargo thefts 害羞草研究所 when goods are stolen during transportation 害羞草研究所 rose 59 per cent in Canada and the United States last year, according to data analytics firm Verisk害羞草研究所檚 CargoNet. The 2,852 incidents followed a 15 per cent jump in 2022 and a 20 per cent increase in 2021.

Experts say more old-fashioned methods of theft such as cutting fences at freight yards and hot-wiring semis at truck stops remain popular. But even those acts are often informed by information gleaned from online load boards 害羞草研究所 sites that connect shippers and carriers 害羞草研究所 or phishing scams and other hacking methods.

害羞草研究所淭he way it used to be was that they would just randomly steal whatever they could get their hands on,害羞草研究所 said Haywood.

害羞草研究所淣ow, if they have inside information on something, they害羞草研究所檒l actually go into a yard and go through half a dozen trailers until they find the product that they were told is there, and then they害羞草研究所檒l steal that particular one.害羞草研究所

Digital hacks and tracking devices such as Apple AirTags can also yield that inside info 害羞草研究所 shipment contents or location, for example. They害羞草研究所檝e gained traction over the past year, in part because the methods are so cheap, said Danish Yusuf, CEO of Toronto-based Zensurance.

害羞草研究所淭he marginal cost of hacking the system is so low because it害羞草研究所檚 just somebody sitting in their basement somewhere just trying constantly,害羞草研究所 he said.

Other newer approaches that rely on 害羞草研究所渟trategic theft,害羞草研究所 where criminals effectively trick shippers into handing over their goods, are catching on too.

The most common type is identity theft, where a crew uses false documentation to pose as an existing fleet, said Joe Palmer, who heads insurance firm Gallagher Canada害羞草研究所檚 transportation team.

害羞草研究所淎 thief online can find the identity of a legitimate carrier 害羞草研究所 get their credentials and basically hold themselves to be somebody that they害羞草研究所檙e not,害羞草研究所 he said.

Malefactors might bid an irresistibly low price to transport a shipment.

害羞草研究所淭hey basically are flooding people害羞草研究所檚 inboxes and phone lines to try to get their hands on a load. 害羞草研究所楬ey, we害羞草研究所檙e ABC Trucking, we have trucks available to haul your freight,害羞草研究所櫤π卟菅芯克鶟 Palmer said.

Once obtained, the costly cargo is rarely seen by legitimate eyes again 害羞草研究所 until it hits the retail shelf, shorn of its illicit tail.

Last April, a thief walked away with $23.8 million in gold and cash from an Air Canada warehouse after presenting phoney documents, according to an October court filing from security firm Brink害羞草研究所檚. The incident marked the most notorious example in recent years of a so-called fictitious pickup 害羞草研究所 using false identification or documents to pose as a legitimate driver in person.

Fictitious pickups 害羞草研究所 also called fraudulent pickups 害羞草研究所 jumped 600 per cent in 2022 in Canada and the U.S., though they still account for a minority of the total, according to CargoNet.

Illegal wholesalers often present a 害羞草研究所渨ish list害羞草研究所 of items in hot demand, much the way auto theft works now, said Haywood.

Food and beverages, household products and metals now comprise Canada害羞草研究所檚 most sought-after stolen goods, in that order, according to CargoNet.

Food inflation over the past two years sparked a commensurate spike in demand for meat and other edible items.

害羞草研究所淭hey might be able to pick up a $100,000 load for $30,000,害羞草研究所 Haywood said of grocers on the grey market. 害羞草研究所淭here害羞草研究所檚 no way of tracing products like that. It害羞草研究所檚 not like they have serial numbers on packs of chicken.害羞草研究所

Purloined poultry or pork can pose a health risk, however.

害羞草研究所淪ometimes these things are stolen, they害羞草研究所檙e kept by the roadside for a day or two and possibly the refrigeration unit害羞草研究所檚 gone off for a day,害羞草研究所 the police detective said.

Electronics also make for high-value targets.

害羞草研究所淕enerally, those loads will be sectioned off and sold in lots to different brokers. It害羞草研究所檚 difficult to pawn an entire 53-foot trailer full of 60-inch big-screen televisions.害羞草研究所

The eventual outlets for hot household goods include independent stores, flea markets and online platforms such as Facebook Marketplace and eBay, Haywood said.

To leave as few fingerprints as possible, crime rings often resort to 害羞草研究所渄ouble brokering,害羞草研究所 all arranged online.

害羞草研究所淭hey害羞草研究所檒l hire a legit trucking company to take it across the border or to the final destination so they don害羞草研究所檛 take the risk of the actual trucking. And then they pick it up on the other end,害羞草研究所 said Yusuf.

The value of freight stolen across Canada and the U.S. last year totalled $449 million, a 47 per cent jump from 2022, according to CargoNet.

The firm found that Ontario accounted for an astounding 83 per cent of all cargo theft incidents in Canada, with the Toronto area as the reddest of hotspots, though police say offences are radiating westward as perpetrators try to evade a regional crackdown.

While thenumber of reported incidents in Canada actually fell by a handful in 2023, the figure still sat 42 per cent higher than 2021 levels.

Meanwhile, experts say the value loss likely increased.

害羞草研究所淲e see a lot of loads that are worth $500,000 and higher. We have some clients that carry cargo limits of $2 million,害羞草研究所 said John Miklus, president of the American Institute of Marine Underwriters.

Many incidents go unreported, he added. Reputation and insurance rate hikes are the main reasons.

害羞草研究所淚f I害羞草研究所檓 running a cargo business, I don害羞草研究所檛 want people to know I was robbed because then it hurts my ability to get more business,害羞草研究所 said Yusuf. 害羞草研究所淚f I fell for a phishing scam for instance.

害羞草研究所淭hese thieves are getting smarter. They see people using technology in all other spaces, and cargo theft is no different.害羞草研究所

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Christopher Reynolds, The Canadian Press

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