As the U.S. gears up for Memorial Day on May 27, Verisk’s CargoNet has issued a warning to the supply chain industry to be on high alert due to a potential increase in cargo thefts during the extended business closures.

According to theft data from 2019 to 2023 (from the Thursday before Memorial Day until the Wednesday after the holiday), there were 146 events reported over the past five years, with an average of 29 events per year. In each theft, the stolen cargo was worth an average of $264,016 (all figures US). In part, this is due to the three thefts that exceeded $1 million, CargoNet said in a news release. 

Last year marked a significant rise in theft incidents with 40 events recorded, a sharp increase from the 16 events reported the previous year. And while theft occurrences peaked on Fridays (17% of total thefts), 30% of all events happened on Wednesdays (15%) and Tuesdays (15%), according to CargoNet.

Food and beverage items were targeted in 24 of the recorded incidents, as it remains the hottest commodity for cargo thieves who target a wide range of products in this category. Household items and electronics are next on the thieves’ ‘most-wanted’ list, with 23 and 18 incidents recorded, respectively. 

Misdirection fraud, fictitious pickup 

CargoNet says it has seen a sharp rise in highly technical shipment misdirection fraud schemes across the U.S., adding that fictitious pickup and fraud complaints have reached “record-breaking numbers.”

California accounted for 43 incidents over the past five Memorial Day weekends, remaining the most at-risk state. It has nearly double the reported incidents from Texas, the second most reported state with 22 incidents. While most of the misdirection fraud has taken place in California, some loads have shipped from other states and misdirected to the state. 

For those reasons, those involved in the shipping and receiving of goods should stay alert, enhance safety measures and identify safety risks, CargoNet warns, adding that shippers should also consider enhancing sign-in procedures to capture truck and driver information.

“Industry professionals should be on high alert for unauthorized attempts to misdirect shipments from the intended receiver. Before accepting a bid on a shipment, logistics brokers should consider enhanced carrier qualification practices including verifying with the registered FMCSA phone number or email, monitoring FMCSA SAFER for recent MCS-150 form updates (which may indicate unauthorized changes to a motor carrier’s contact information), checking for established, positive load history.”

Some noteworthy thefts from previous Memorial Day weekends include: 

·        $3,974,370 in pharmaceuticals in Clermont, FL

·        $1,600,000 in pharmaceuticals in Clermont, FL

·        $1,000,000 in electronics in Kennesaw, GA

·        $623, 913 in pharmaceuticals in San Francisco, CA