The Transportation Intermediaries Association’s (TIA) April 2025 Fraud Report, the second in its ongoing series, delivers a powerful message this week: Freight fraud is escalating in both volume and complexity, and even the most vigilant companies are struggling to keep pace.
Based on six months of the company’s Watchdog platform data and a member survey conducted in early 2025, the report paints a detailed picture. While the industry has made strides in prevention, fraudsters continue to innovate by leveraging identity theft, document manipulation and insider knowledge to infiltrate freight networks.
Cargo theft continues to be the most financially damaging type of fraud. TIA cites National Insurance Crime Bureau figures that peg total cargo theft losses at up to $35 billion annually, with a 1,500% increase in reported incidents since 2021. But in terms of frequency, unlawful brokerage has emerged as the No. 1 threat. These scams, in which criminals pose as legitimate brokers or carriers to hijack loads or payments, accounted for 402 reported incidents in just six months.
Identity theft and spoofing also remain prevalent, with 42% of respondents citing them as their most common fraud experiences. The combination of these tactics has made it increasingly difficult for even the most experienced logistics professionals to separate real from fake.
Among the most harrowing case studies is that of Shine Logistics. Despite verifying a carrier’s 95/100 rating and insurance credentials, the company lost nearly $300,000 in cargo when criminals used a leased truck under false pretenses and hijacked a legitimate identity. The load, artificial nails, was transloaded and vanished without a trace. Insurers refused coverage, and the criminals walked away untouched.
In another case, Victor Louis of One Logistics Network traced a stolen aluminum shipment back to an international crime ring. His efforts to alert authorities were largely dismissed, exposing another deep vulnerability: Law enforcement often treats freight fraud as a civil matter, even when international actors and coordinated deception are involved.
Fraud is not evenly distributed across the country. Texas (19%) and California (14%) are the two leading states where fraud originated, followed by South Carolina and Washington. These are key freight hubs, making them prime targets for organized fraud rings.
As for what’s being stolen? High-value, low-traceability items top the list: Household goods (23%), electronics and appliances (15%), and frozen foods (9%) are the most commonly targeted commodities.
The financial impact is jaw-dropping. Nearly one in four survey respondents reported losses of over $200,000, while more than half said they lost at least $10,000.
But it’s not just the theft, it’s also the time. Sixty-five percent of companies said they spend more than two hours per day on fraud prevention, and 37% spend that much time responding to incidents.
TIA’s data shows that nearly all companies surveyed (94%) are actively investing in fraud prevention. These efforts include everything from multisource carrier verification and real-time tracking to internal Do Not Use lists and strict protocols for high-value loads. However, prevention comes at a steep cost: 51% of respondents reported spending between $5,000 and $100,000, and 10% spent more than $200,000 in the past six months alone.
The Watchdog platform has also become a critical tool. The 1,611 fraud incidents reported between September 2024 and February 2025 is a 65% increase over the previous period.
Fraud infographic of the week
Calling all freight fraud fighters!
Is your company battling fraud like a pro? Know a tech tool or team that’s shutting down scams before they start? It’s time to shine the spotlight on the heroes behind the scenes.
The FreightWaves Fraud Fighters Awards are celebrating the boldest and most relentless innovators protecting the freight world from scams, swindlers and shady schemes. From double-brokering busters to identity theft stoppers, we’re honoring the brains and tech keeping the supply chain safe and sound.
Does your solution:
Verify carrier credentials with precision?
Track shipments in real time to outsmart fraudsters?
Detect scams before they can strike?
Then you (or your favorite fraud-busting partner) deserve a nomination!
Nominations close: May 8 at 5 p.m. EDT
Winners revealed: May 14 at Freight Fraud Symposium, Dallas
Keyed up and shipped out
A nine-month investigation unraveled a high-end auto theft ring that stole over $6 million worth of luxury vehicles, including dozens of BMWs, Mercedes-Benz models and a 2025 Rolls-Royce Cullinan, from homes across New York, New Jersey and Connecticut.
The thieves gained entry by stealing key fobs during home invasions, allowing them to quietly drive off without triggering alarms. The operation ran illegal showrooms out of Bronx parking garages, where buyers paid cash to ship the vehicles overseas.
Authorities found 72 stolen cars packed in shipping containers at the seaports of Elizabeth, New Jersey and Staten Island, destined for buyers in Gambia and Ghana. Eleven suspects were charged in New Jersey and eight in New York. All face racketeering charges carrying up to 20 years in prison.
Investigators say this international smuggling pipeline is part of a broader black-market network that fuels crime and instability abroad. Learn more about the crimes here.
Registration open for May Freight Fraud Symposium in Dallas
Be part of the solution that stops freight fraud in its tracks. Let’s cut through the noise and address this issue head-on!
Freight fraud has reached a crisis level, and it impacts everyone in the industry. It’s time for us to come together to address this critical problem and share best practices on how to mitigate it.
Join us on May 14 in Dallas at the Freight Fraud Symposium, where transportation executives, freight leaders and technology buyers will come together to discuss the issues we all face, share lessons learned and get insights on the latest technology to tackle this problem.
Space is limited, so register now to save your spot!
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