How Do Freight Brokers Protect Against Cargo Theft

Top Insights

Thorough Carrier Vetting: Verify MC/DOT numbers, safety ratings, insurance status, and spot red flags with tools like SaferWatch, Carrier411, and the FMCSA SMS
Secure Load Information: Share shipment details only over encrypted, MFA‑protected channels and with authorized parties to prevent data leaks
Real‑Time Tracking & Smart Locks: Use GPS, geofencing, IoT sensors, and electronic seals/locks to monitor location, unauthorized stops, and tampering instantly
Rapid Incident Response: If theft occurs, report immediately to law enforcement, CargoNet, your shipper, and insurer—and compile all communications and tracking data
Secure Pickup & Delivery Procedures: Verify driver identity with shippers, share pickup details in advance, and plan routes away from known theft hotspots
Avoid Double Brokering: Keep loads within a single, transparent chain of custody—never pass freight to another broker without the shipper’s knowledge

Cargo theft is a significant issue in the logistics industry. There were 3,625 theft cases in 2024, a 27% increase from 2023. The average value per theft also climbed to $202,364, up 7% from the previous year. These alarming statistics show how much cargo theft increased in the supply chain.

Naturally, the question is: What can freight brokers do to reduce these risks and protect the loads they’re transporting? This article will explain the key ways brokers help prevent cargo theft and how you can build a secure brokerage from day one.

6 Key Strategies Freight Brokers Use To Protect Against Cargo Theft

Here are six proven strategies you need to master if you want to reduce your supply chain risk, prevent cargo theft, and build a brokerage that shippers trust.

Work with legitimate carriers through thorough vetting

Carrier vetting is your first line of defense against theft. However, don’t stop at checking if a carrier has an MC or DOT number – go deeper. Review their safety history, verify their insurance, and confirm their operating authority.

Tools like SaferWatch, Carrier411, and the FMCSA Safety Measurement System can help you spot red flags, such as:

A newly activated authority
Mismatched contact details
Suspended insurance
Poor safety ratings
Inconsistent equipment listings

Some red flags don’t always mean you’re dealing with a fraudulent motor carrier. They could simply be signs of a new trucking company or a carrier going through changes. They only mean you need to take a closer look and verify the situation before trusting them with a load.

It’s important to do due diligence to ensure you’re taking the appropriate measures to mitigate risk. Double-check documents, call references if needed, and trust your gut. In this business, a few extra steps can save you and your client from a major loss.

Yes, taking time to vet carriers is tedious, but it’s an essential security measure for protecting your cargo and reputation.

Secure load information

Cargo thieves often rely on leaked or stolen information to perpetrate scams. For example, if they know your carrier’s truck stops at a specific rest area or yard regularly, they can plan to intercept the load when it’s most vulnerable.

Here are some proactive measures that help to prevent sensitive load data from being leaked:

Avoid sharing load details over unsecured channels. Use systems with encryption and multifactor authentication.
Only share shipment details with people who need it. Don’t broadcast sensitive information on public load boards.
Make sure everyone involved in the shipment understands how to handle sensitive documents and spot phishing or spoofing attempts.

Tip: While using secure channels is important, you can take things a step further by agreeing on specific communication lines. For example, you can decide that all information will be shared only via email. This can help you and the carrier spot cases of impersonation if one party suddenly switches to a different communication channel.

Use real-time load tracking

Thanks to advanced technology like GPS and real-time load-tracking platforms, freight brokers now have more visibility than ever before. You’ll be able to track your shipments from pickup to delivery, receive automatic alerts, and spot unusual activity instantly.

Technologies like geofencing and IoT-enabled sensors improve load visibility even further. These tools allow you to monitor not only location but also trailer temperature, unauthorized stops, and delays.

Some carriers now equip trailers with smart locks and electronic seals that use codes, key cards, or biometric access. These locks ensure that only authorized personnel can open the trailer. If someone tries to tamper with the lock or gain access without permission, security teams are notified instantly of the breach or attempted breach. This allows you to respond quickly, improving cargo security.

Respond quickly to red flags and incidents

Even with the best security measures in place, cargo theft can still occur. If you fall victim to his crime, it’s important to act quickly. Report the incident to law enforcement, file a report with CargoNet, and alert your shipper and insurance provider.

Also, gather all communication records, tracking data, and documents to support any investigation. How you respond in these moments can increase the chances of you recovering the stolen load and keeping your client’s trust.

Develop secure pickup and delivery procedures and checklists

You can reduce theft risk by working with shippers and carriers to plan secure pickups and deliveries. Adding the following steps to the transportation process can boost cargo security:

Share the driver’s name, phone number, etc, with the shipper so they know exactly who to release the load to.
Shippers should check the driver’s ID and verify the carrier before loading the freight.
Instruct drivers to avoid known theft hotspots where fraudsters frequently intercept shipments. This can significantly reduce your risk exposure.

Avoid double brokering

While passing off a load when you’re under pressure to find a truck may be tempting, double brokering can do more harm than good. This practice costs the logistics industry between $500 and $700 million annually.

Double brokering makes it harder to protect cargo because it breaks the chain of accountability. When a load is passed from one party to another without the shipper’s knowledge or consent, you lose visibility over who actually has the freight. This opens the door to theft and financial loss.

How Does Cargo Theft Occur

Here are different methods malicious actors and organized criminal networks use to perpetrate cargo theft.

Strategic cargo theft

This type of theft relies on deception. Thieves pose as legitimate trucking companies and use fake credentials to get assigned loads. Once they’ve picked up the freight, they vanish, leaving no paper trail and no real way to recover the stolen goods.

Identity theft

Fraudsters use stolen identities of actual carriers to appear authentic. They may copy logos and spoof contact details to seem legitimate. If you’re not verifying identities carefully, you might unknowingly give a load to someone pretending to be a trusted carrier.

Pilferage

In this case, only part of the cargo is stolen. Thieves might break into a trailer at a rest stop or during layovers, taking only the most valuable items. It’s often not discovered until the freight reaches its final destination.

Straight theft

This is the more “traditional” cargo theft, in which criminals break into trailers or containers to steal cargo. It often happens in unsecured spaces and when trailers are left unattended.

Fictitious pickup

Thieves impersonate legitimate trucking companies, show up with a clean truck and fake paperwork, and pick up the load. Everything looks official until the shipper realizes the real carrier never arrived.

Knowing how criminals perform their scams and intercept shipments allows you to implement proper cargo theft prevention measures. Stay updated about emerging threats and organized crime rings, as these schemes have become increasingly sophisticated over the past few years.

FAQs

1. What is the difference between co-brokering and double brokering?

Co-brokering is a legal and transparent arrangement where two licensed brokers work together with the shipper’s consent. Double brokering is illegal and happens when a broker passes a load to another broker without the shipper’s knowledge.

2. What type of insurance do freight brokers need for cargo protection?

Freight brokers typically carry contingent cargo insurance, which covers cargo in case the carrier’s insurance doesn’t pay out. They may also carry errors and omissions insurance to protect against claims due to mistakes or negligence.

3. What items are common targets of cargo theft?

Thieves usually target high-value, easy-to-resell items. Common targets include:

Electronics (like laptops, TVs, and smartphones)
Pharmaceuticals
Clothing and footwear
Cosmetics
Alcohol
Home goods

These products are often untraceable and in high demand, making them attractive for black-market resale.

4. What are the different places cargo theft occurs?

Cargo theft can happen almost anywhere, but it’s most common in:

Unsecured parking lots and truck stops
Drop yards or warehouse lots, especially overnight
Near major ports or distribution centers, where cargo volumes are high

Final Thoughts

Cargo theft and other freight fraud aren’t just a carrier’s problem. It’s also a freight broker’s responsibility. Brokers are expected to know how to vet carriers, protect load details, and use the right tools to reduce risk. The steps covered in this article can help you combat cargo theft.

The 90-Day Freight Broker Course teaches you everything you need to get started in the transportation industry. It covers choosing the right carriers, understanding insurance, and how to prevent costly mistakes like theft and double brokering.

Sources: