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Industry Beware: Cargo Thieves Posing As Truckers

by Jana Ritter - Published: 10/21/2013

An increasingly common criminal tactic for stealing huge shipments of valuable cargo, is perhaps the most simple: Thieves posing as truckers to load stolen freight onto their own tractor-trailers and drive away with it in plain sight. A successful practice that has allowed con men to make off with millions of dollars in merchandise each year, experts say the practice is growing so rapidly that it will soon become the most common way to steal freight.

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A generation ago, thieves simply stole loaded trucks out of parking lots. But the industry's widening use of GPS devices, high-tech locks and other advanced security measures have pushed criminals to adopt new hoaxes. Helping to drive the scams, experts say, is the Internet, which offers thieves easy access to vast amounts of information about the trucking industry. Online databases allow con men to assume the identities of legitimate freight haulers and to trawl for specific commodities they want to steal.

Besides hurting the nation's trucking industry — which moves more than 68 percent of all domestic shipments — the thefts have real-world consequences for consumers, including raising prices and potentially allowing unsafe food and drugs to reach store shelves.

News reports from across the country recount just a few of the thefts: 80,000 pounds of walnuts worth $300,000 in California, $200,000 of Muenster cheese in Wisconsin, rib-eye steaks valued at $82,000 in Texas, $25,000 pounds of king crab worth $400,000 in California.

The Hughson Nut Co. fell victim twice last year, losing two loads valued at $189,000. Each time, the impostor truckers showed up at the nut processor on a Friday with all the proper paperwork to pick up a load of almonds. On the Monday following the second theft, a customer called to complain that the almonds had never arrived in Arizona. The company's quality assurance manager, Raquel Andrade, recalled getting a sinking feeling: "Uh-oh. I think it happened again."

The thefts are little known and seldom discussed outside the world of commercial trucking. Companies that have been victimized are often reluctant to talk about their losses. But crime reports and Associated Press interviews with law enforcement and industry leaders reveal an alarming pattern that hurts commerce, pushes up consumer prices and potentially puts Americans' health and safety at risk.

"In the end, the consumer winds up paying the toll on this," said Keith Lewis, vice president of CargoNet, a theft-prevention network that provides information to the insurance industry. The economic results go beyond adding a few nickels or dimes to retail prices. The "consequential damages" from stolen cargo easily run into the millions of dollars, far exceeding the value of the lost shipments. For example, a stolen load of pharmaceuticals might necessitate a worldwide recall of every drug with that lot number to ensure none of the product ends up back in the market in case it gets tampered with.

The trucking and insurance industries are fighting back, urging freight brokers to take extra precautions, such as checking information before awarding shipping contracts to unfamiliar truckers. The California Farm Bureau Federation warns about clues that could indicate a suspicious hauler: temporary name placards or identification numbers on the truck, abrupt changes in the time of the pickup and lack of a GPS tracking system on the truck.

"This is growing at such a rapid, scary rate," said Sam Rizzitelli, national director for transportation at Travelers Inland Marine Division. "It warrants a lot of attention."