In the dynamic and often perilous world of freight and logistics, vulnerabilities can manifest in both unexpected and routine operations. Today’s supply chain is so complex that the many moving parts provide ample opportunity for crime and fraud. It’s a fact that organized groups are hijacking goods in North America with alarming frequency. Cargo theft incidents surged by more than 57 percent in 2023 alone, tallying losses amounting to $130 million.
The recent surge in cargo fraud and cybercriminal activities means that freight industry stakeholders, especially carriers and brokers, need to assess and manage their risks with the right coverage.
“Both motor carriers and freight brokers need cyber liability insurance, and the policy should include coverage for both financial loss and physical loss of goods,” said Jessie Merritt, Executive Vice President of Sales for Reliance Partners. “The digital nature of our current theft environment requires a similar risk management approach.”
The nature of threats that freight companies face is continually evolving, which means that companies need comprehensive coverage strategies to safeguard against financial and reputational damage now more than ever.
“A lot of the claims we see now have an element of cyber fraud or theft, whether that’s a Bill of Lading being doctored, a social engineering attempt, or impersonation, like when one motor carrier is posing as another,” Merritt said.
Today’s criminals are constantly adapting and they are leveraging technology to exploit weak links in the supply chain. Many of them employ tactics such as deep fakes and stolen identities to pose as legitimate entities within the logistics chain.
“In the freight industry, we used to think of cyber crime as things like just wire fraud or phishing,” Merritt said. “Those issues are still relevant, but the level of attack we see today is different. It’s theft at a massive scale and the cyber environment is a critical entry point,” she said.
Given the intricate nature of freight fraud, having a comprehensive insurance policy is non-negotiable. At its core, a robust policy helps shield businesses from direct financial losses incurred through deceit and theft while also providing legal and logistical support to restore normalcy and mitigate reputational harm.
As Merritt says, a lot of protection is afforded by a good cyber policy as long as the insurer will pay some element of property damage in a claim and not just monetary damage.
Freight fraud is a sophisticated form of crime targeting the industry. In one infamous case, thieves intercepted a refrigerated container, demanding a $40,000 ransom.
In the dynamic and often perilous world of freight and logistics, vulnerabilities can manifest in both unexpected and routine operations. Today’s supply chain is so complex that the many moving parts provide ample opportunity for crime and fraud. It’s a fact that organized groups are hijacking goods in North America with alarming frequency. Cargo theft incidents surged by more than 57 percent in 2023 alone, tallying losses amounting to $130 million.
The recent surge in cargo fraud and cybercriminal activities means that freight industry stakeholders, especially carriers and brokers, need to assess and manage their risks with the right coverage.
“Both motor carriers and freight brokers need cyber liability insurance, and the policy should include coverage for both financial loss and physical loss of goods,” said Jessie Merritt, Executive Vice President of Sales for Reliance Partners. “The digital nature of our current theft environment requires a similar risk management approach.”
The nature of threats that freight companies face is continually evolving, which means that companies need comprehensive coverage strategies to safeguard against financial and reputational damage now more than ever.
“A lot of the claims we see now have an element of cyber fraud or theft, whether that’s a Bill of Lading being doctored, a social engineering attempt, or impersonation, like when one motor carrier is posing as another,” Merritt said.
Today’s criminals are constantly adapting and they are leveraging technology to exploit weak links in the supply chain. Many of them employ tactics such as deep fakes and stolen identities to pose as legitimate entities within the logistics chain.
“In the freight industry, we used to think of cyber crime as things like just wire fraud or phishing,” Merritt said. “Those issues are still relevant, but the level of attack we see today is different. It’s theft at a massive scale and the cyber environment is a critical entry point,” she said.
Given the intricate nature of freight fraud, having a comprehensive insurance policy is non-negotiable. At its core, a robust policy helps shield businesses from direct financial losses incurred through deceit and theft while also providing legal and logistical support to restore normalcy and mitigate reputational harm.
As Merritt says, a lot of protection is afforded by a good cyber policy as long as the insurer will pay some element of property damage in a claim and not just monetary damage.
Freight fraud is a sophisticated form of crime targeting the industry. In one infamous case, thieves intercepted a refrigerated container, demanding a $40,000 ransom.
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