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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.

鈥淪eeing an entire container full of brand new Ski-Doos valued at, like, $24,000 (each) 鈥 that鈥檚 a pretty good recovery for our unit,鈥 said Haywood, who heads the force鈥檚 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.

鈥淐argo theft definitely is on the rise,鈥 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 鈥 when goods are stolen during transportation 鈥 rose 59 per cent in Canada and the United States last year, according to data analytics firm Verisk鈥檚 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 鈥 sites that connect shippers and carriers 鈥 or phishing scams and other hacking methods.

鈥淭he way it used to be was that they would just randomly steal whatever they could get their hands on,鈥 said Haywood.

鈥淣ow, if they have inside information on something, they鈥檒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鈥檒l steal that particular one.鈥

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

鈥淭he marginal cost of hacking the system is so low because it鈥檚 just somebody sitting in their basement somewhere just trying constantly,鈥 he said.

Other newer approaches that rely on 鈥渟trategic theft,鈥 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鈥檚 transportation team.

鈥淎 thief online can find the identity of a legitimate carrier 鈥 get their credentials and basically hold themselves to be somebody that they鈥檙e not,鈥 he said.

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

鈥淭hey basically are flooding people鈥檚 inboxes and phone lines to try to get their hands on a load. 鈥楬ey, we鈥檙e ABC Trucking, we have trucks available to haul your freight,鈥欌 Palmer said.

Once obtained, the costly cargo is rarely seen by legitimate eyes again 鈥 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鈥檚. The incident marked the most notorious example in recent years of a so-called fictitious pickup 鈥 using false identification or documents to pose as a legitimate driver in person.

Fictitious pickups 鈥 also called fraudulent pickups 鈥 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 鈥渨ish list鈥 of items in hot demand, much the way auto theft works now, said Haywood.

Food and beverages, household products and metals now comprise Canada鈥檚 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.

鈥淭hey might be able to pick up a $100,000 load for $30,000,鈥 Haywood said of grocers on the grey market. 鈥淭here鈥檚 no way of tracing products like that. It鈥檚 not like they have serial numbers on packs of chicken.鈥

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

鈥淪ometimes these things are stolen, they鈥檙e kept by the roadside for a day or two and possibly the refrigeration unit鈥檚 gone off for a day,鈥 the police detective said.

Electronics also make for high-value targets.

鈥淕enerally, those loads will be sectioned off and sold in lots to different brokers. It鈥檚 difficult to pawn an entire 53-foot trailer full of 60-inch big-screen televisions.鈥

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 鈥渄ouble brokering,鈥 all arranged online.

鈥淭hey鈥檒l hire a legit trucking company to take it across the border or to the final destination so they don鈥檛 take the risk of the actual trucking. And then they pick it up on the other end,鈥 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.

鈥淲e see a lot of loads that are worth $500,000 and higher. We have some clients that carry cargo limits of $2 million,鈥 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.

鈥淚f I鈥檓 running a cargo business, I don鈥檛 want people to know I was robbed because then it hurts my ability to get more business,鈥 said Yusuf. 鈥淚f I fell for a phishing scam for instance.

鈥淭hese thieves are getting smarter. They see people using technology in all other spaces, and cargo theft is no different.鈥

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Christopher Reynolds, The Canadian Press

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