European Cargo Thefts Becoming More Sophisticated

There has been a sharp increase in cargo thefts across Europe over the past few years.  It is estimated that some 200,000 cases of cargo theft have been recorded since 2011, causing a loss of over 8 billion EUR. According to the Transported Asset Protection Association (TAPA), the number of cargo theft incidents recorded in TAPA´s Incident Information Service in 2013 rose by 66% compared to the previous year - from 689 incidents in 2012 to 1145 in 2013.

This is just the tip of the iceberg. Many thefts across the EMEA region remain unreported. Generally, Europe struggles with official freight statistics issued by governments and law enforcement entities. Countries such as The Netherlands and Belgium have put some effort into collecting such data but there are areas, mainly in Central and Eastern Europe, where cargo theft information is very hard to find.

Rise of the Phantom Carriers

One trend regarding these countries is the involvement of fake (or phantom) carriers, which are criminal enterprises that appear legitimate and fool experienced businesses. These fake carriers do not rely on classic armed robberies or fake police confiscating trucks, they simply pick up the goods and disappear. The crimes are wide-spread and carried out by well-organized and sophisticated criminal groups that deceive even the most experienced business people. The cargo theft is usually just one piece of their scheme, as the freight can be turned over and the profit used for other illegal activities.

Although the phantom carriers trend is growing in Central and Eastern Europe, it doesn´t mean that this type of cargo theft happens in these areas alone. Fake carriers often originate in Central and Eastern Europe, on occasion from Western Europe - particularly Italy, but these types of incidents are growing increasingly in Belgium, the Netherlands, and France. This practice is growing rapidly and some experts say that it may become the most common method of stealing cargo. Advanced security measures have made these thieves adopt different techniques. With the Internet’s vast information about trucking companies and online databases, stealing is becoming much easier for the fake carriers.

 Three most common phantom carrier schemes:

A Typical Phantom Carrier Scenario

The criminal, representing a fake trucking company, will offer a very reasonable transportation quote and provide a contract and a vehicle registration number. Once agreed, the fake carrier proceeds with picking up the shipment. Within a very short amount of time, a call is placed with an excuse as to why the load cannot be delivered on time, such as a flat tire, accident, etc.  The customer, aware of logistic pitfalls, accepts the excuse and unknowingly provides the fake carrier with time to steal the cargo. After this notification, the customer will not hear from the fake carrier again as all communication devices are abandoned or destroyed.

The customers of the fake trucking companies bear the financial burden of this crime. They are unable to file a claim with a false carrier or a carrier that used a stolen identity. The customers may try to use their insurance, but the process is lengthy with no certain outcome. As for prosecution, national police can only operate within their country borders and at this point, there is no international unit pursuing these cases.

How to fight phantom carriers?

Due to the high level of sophistication put into this kind of fraud, it is often difficult to detect fake carriers. Businesses need to put prevention measures in place to reduce the risk.  These prevention measures should include:

• Verify carrier documents
• Verify truck and trailer registration numbers
• Take photos during the loading of a truck and the plate number
• Ask the driver for his/her license, password, or ID and write down this information
• Verify company information by internet search and telephone calls
• Build relationships with your carriers
• Limit carrier use to a select group of trustworthy carriers

For more information on how to select ground transportation companies that fit your business needs, please contact Allyn International at sales@allynintl.com

Contributors: Heather Skovron, Jiří Michek, Ivana Svobodová