Atlanta, Georgia — Cargo theft in the United States has surged to unprecedented levels, driven by sophisticated criminal tactics. Recent findings reveal that organized crime syndicates are increasingly infiltrating supply chains, hijacking technology and impersonating bona fide shipping companies to snatch goods intended for delivery.

According to industry reports, theft incidents reached a staggering 3,798 last year, marking a 26% increase from 2023. These thefts resulted in losses nearing $455 million across the country’s supply chains, although some experts estimate the real figure could be as high as $1 billion, factoring in unreported cases.

“Every day, we see attempts to breach our network. Our sales teams must remain constantly vigilant,” said Jerry Jacobs, a risk management executive at Prosponsive Logistics. He emphasized the alarming reality that one in three interactions could involve a potential thief posing as a legitimate business representative.

Notably, one incident involved a toy manufacturer that lost over $1 million during the holiday season when criminals impersonated authorized brokers. The incident highlights how these identity theft tactics have evolved, accounting for nearly a third of all cargo thefts in 2024, a sharp rise from just 8% four years earlier.

Criminal organizations from at least 32 countries have been linked to these high-tech thefts. Brokers typically rely on platforms like DAT Freight and Analytics to coordinate shipping. However, Jacobs noted that fraudsters often create fictitious listings to deceive legitimate companies into hiring them.

The problem is not just confined to smaller businesses; major corporations are also falling victim, although many choose not to report such incidents. “Often, companies won’t report thefts because they believe recovery is unlikely,” said Barry Conlon, CEO of Overhaul, a supply chain security firm. This hesitance still impacts inventory levels and can affect consumer sales.

In some cases, stolen items have surfaced in unexpected locations. A police investigation in February uncovered Lacoste footwear stolen from a large cargo heist, while Lululemon faced a similar fate when thieves made off with products valued at more than $1 million from its California distribution center.

Consumers may soon feel the repercussions of increased cargo theft as retailers struggle to maintain inventory levels, which could lead to price hikes or limited availability of goods. “If a product line has limited items, we’ll have to allocate what remains strategically,” explained Ellen Kapiloff, Lacoste’s North and Central America operations vice president.

In response to the growing threat of cargo theft, firms are ramping up security measures, investing millions in advanced systems. Meanwhile, legislative efforts are underway to combat this issue. Representative David Valadao of California recently introduced the Combating Organized Retail Crime Act, which aims to establish a coordinated task force within the Department of Homeland Security to address retail crimes, including cargo theft.

Additionally, a bipartisan bill in the Senate seeks to empower the Federal Motor Carrier Safety Administration with enhanced regulatory authority to impose penalties on impersonators, aiming to better protect the logistics industry from these escalating threats.