The United States is experiencing a significant surge in cargo theft, with organized criminal groups targeting trucks, warehouses, and train cars across the country. This escalation in theft is part of a broader trend where both domestic and international criminal networks are exploiting technologies meant to streamline supply chains to instead divert valuable goods into their possession. These criminals use fake documents to impersonate legitimate company employees, allowing them to redirect shipments and payments to themselves. According to Keith Lewis, vice president of Verisk CargoNet, these schemes offer high rewards with minimal risk, as the chance of getting caught is low. In 2024, Verisk CargoNet recorded 3,798 cargo theft incidents, marking a 26% increase from the previous year, with reported losses nearing $455 million. However, industry experts suggest the actual losses may exceed $1 billion annually due to underreporting. Train cargo thefts alone increased by about 40% in 2024, with over 65,000 incidents reported, according to the Association of American Railroads. A particularly concerning trend is the rise of "strategic theft," where criminals deceive shippers, brokers, or carriers into handing over cargo or payments. By 2024, strategic theft accounted for about one-third of all cargo thefts, up from 8% in 2020. Tracking down these criminals, especially those operating overseas, is extremely challenging due to the lack of a traceable trail, much like identity theft cases. Criminal networks have been traced to 32 countries, with no strong deterrents in place to prevent them. Jerry Jacobs of Prosponsive Logistics in Atlanta describes the situation as criminals having a "license to steal," as they can operate from abroad with just a cell phone and a computer. He notes that his sales representatives must remain vigilant as a significant portion of their interactions could be with fraudsters. Cargo theft has a broader impact, leading to increased retail prices as companies factor in these losses. Barry Conlon of Overhaul, a supply chain security firm, highlights the organized nature of these crime groups, which have a deep understanding of U.S. freight movement. Conlon compares the risk and payoff of cargo theft to bank robbery, noting the former as being low-risk with high returns. Cargo theft is often underreported because companies feel retrieval is unlikely once they discover a theft. This sentiment is echoed by Scott Cornell of Travelers Insurance, who characterizes organized cargo theft rings as knowing what and when to steal, with food and beverages being the top targets due to their consumable nature, making evidence hard to trace. Retailers are generally reluctant to discuss cargo theft publicly. For instance, Meta did not comment on a $500,000 theft of Ray-Ban and Oculus glasses, and Nike did not respond to requests for comment about their products being targeted. Birger Buesching of Philips notes the increasing prevalence of cargo theft, which was not a concern a few years ago. Replacement of stolen goods is not straightforward, leading to potential delays and customer dissatisfaction. The threat of cargo theft also affects inventory management, as noted by Ellen Kapiloff of Lacoste. If products are stolen, companies may need to strategically relocate remaining stock, potentially causing availability issues for consumers. For example, Lacoste products were recovered from a Los Angeles store following a cargo heist. California, in particular, faces a high rate of cargo theft. A notable incident in May 2024 involved a Lululemon distribution center losing over a million dollars' worth of merchandise. While arrests were made and some products recovered, the incident underscores the pervasive nature of cargo theft. Despite the financial toll, cargo theft is rarely discussed in public earnings calls. However, companies like Knight-Swift and J.B. Hunt acknowledge the issue is becoming more prominent. J.B. Hunt is implementing security adjustments, while C.H. Robinson boasts a high success rate in deterring theft and fraud, moving millions of shipments annually with minimal incidents. Efforts to combat cargo theft are underway, with companies like TQL investing significantly in technology and personnel. Nolan Transportation Group emphasizes a proactive approach, incorporating additional security measures to prevent fraudulent activities. DAT Freight and Analytics, a platform for booking shipments, employs a team to detect and remove fraudulent activities, identifying numerous attempts daily. Highway, a security company, is focused on identifying potential threats before they disrupt the supply chain. The company regularly faces attempts by criminal groups to infiltrate its system. To counteract this, Highway's software