Cargo Theft Rings Target U.S. Supply Chain with Sophisticated Cyber Tactics

In a trend that security experts describe as a national security threat, criminal networks are increasingly targeting America’s supply chain with sophisticated schemes, resulting in nearly $1 billion in annual losses. These operations, often orchestrated from overseas, exploit the very digital systems designed to streamline logistics operations.

“This needs to be taken seriously at the national level and regarded as one of many national security threats we’re facing right now,” a law enforcement official told CNBC in their recent investigation into cargo theft.

The scale of the problem has reached unprecedented levels. According to data cited in CNBC’s report, 2024 has already seen 3,798 reported incidents, representing a 26% increase from 2023. Industry experts estimate losses at close to $1 billion annually, though the true figure may be higher due to underreporting.

“Right now, it’s at an all-time high. We’ve never seen it this bad since we’ve been tracking data since 2009,” said a security expert interviewed by CNBC’s Courtney Reagan.

The New Face of Cargo Theft

Unlike traditional cargo thefts involving physical break-ins, today’s most costly schemes employ what security professionals call “strategic cargo theft” – essentially digital deception operations that manipulate legitimate supply chain processes.

These schemes function like elaborate catfishing operations. Criminal networks impersonate legitimate brokers – the middlemen who connect shippers with truckers – on industry platforms like DAT. They post seemingly legitimate job listings that attract actual truckers who unknowingly become pawns in the theft.

In one case documented by CNBC, criminals impersonated a legitimate brokerage after obtaining login credentials through phishing attacks. They then directed legitimate truckers to pick up goods from Amazon warehouses and deliver them to unauthorized locations. The truckers, following what they believed were proper instructions, had no idea they were participating in a theft.

“The bad guys are getting the good guys to do the dirty work for them,” explained Reagan in the CNBC report.

A Global Criminal Enterprise

What makes these thefts particularly challenging to combat is their international nature. According to sources in the CNBC investigation, these criminal operations have been traced to at least 32 countries.

Pakistan was highlighted as one example of a country hosting both legitimate supply chain businesses and criminal operations targeting U.S. logistics. This dual presence creates significant challenges for law enforcement and security professionals.

The appeal for criminals is obvious. “When there’s very little risk but the reward is very high, the return on investment is almost 100%. Why would you stop?” noted one expert in the CNBC report.

Corporate Response

Companies are fighting back with enhanced security measures. At Overhaul, a supply chain security company profiled in the CNBC investigation, employees in Austin and Mexico City monitor shipments in real-time, looking for suspicious patterns that might indicate a theft in progress.

The technology flags warning signs such as unexpected stops, particularly in “red zones” – the first 200 miles after departure, which security experts identify as high-risk areas for cargo theft.

When approached by CNBC, Lululemon (whose merchandise has been targeted) stated it is “taking decisive action against cargo theft.” Meta declined to comment on the theft of its Ray-Ban glasses and Oculus headsets, while Nike did not respond to repeated requests regarding stolen Air Jordans.

As supply chains become increasingly digitized, the vulnerability to these sophisticated attacks may continue to grow. With criminals operating from beyond U.S. borders and the non-violent nature of these crimes making them lower priority for stretched law enforcement resources, the industry faces significant challenges in securing the nation’s supply chain.