TIA 2024 Freight Fraud Report: An average of $400,000 in losses

According to a new report from the Transportation Intermediaries Association (TIA), the logistics industry is facing a massive surge in fraud that is costing companies millions.

In the report, TIA describes an industry "under siege" by increasingly sophisticated fraudsters, urging companies to evolve their defenses. The 12-page report compiles responses from nearly 200 industry professionals between February and August 2024.

Key Stats

• 600% increase in cargo theft between November 2022 and March 2023

• Fraud costs per load exceed $40,000

• Average company losses due to fraud top $402,000

• Top targeted states: California, Texas, Illinois, Florida, and Georgia

Most Common Fraud Types

• Cargo theft is the most prevalent and costly, with electronics, solar panels, and household goods being the top targets.

• Financial fraud includes unlawful brokerage and fraudulent invoicing, with 43% of respondents listing unlawful brokerage as their top concern.

• Identity theft continues to grow, as criminals impersonate legitimate carriers to commit fraud.

Financial Impact

The average company surveyed lost over $400,000 to fraud, with some facing losses exceeding $1 million. One respondent, Rob Hoffman of Dedicated Carriers, shared how a load of $50,000 worth of goods was held ransom by criminals demanding $40,000. (TIA Fraud Report Page 4)

Prevention Strategies:

• Collaboration with shippers, brokers, and carriers

• Investing in advanced technology to detect fraud

• Strengthening vetting processes for carriers

Fraud prevention remains a huge time drain, with 19% of companies spending an entire day each quarter on prevention alone. Despite efforts, fraud continues to evolve, requiring constant vigilance.

If you would like to read TIA's latest report, you can do so here.

Source: Freight Waves | TIA