Like any industry, freight forwarding has its good and bad sides and it is quite easy to become a victim of fraud and most of the time, freight forwarders are not associated with the crime or fraud and they may be co-victims just like you. There are many unscrupulous elements in the market with their fake websites and fake news.

Luis Anderson, shipping coordinator, Deliver Today

Bill of lading held to ransom can happen if a scammer poses as a freight forwarder or you get stuck with a fly by night freight forwarder. They offer a ridiculously low rate which may sound very attractive to you at the time of rate negotiations. After a shipment has been effected, the freight forwarder must issue a bill of lading. Without it, you will not be allowed to take possession of your shipment. This type of fraud often happens after the goods are packed and shipped from the port of loading. Instead of getting this important document, you will receive an email asking you to pay certain additional amounts of money citing various issues.

They will offer cheap rates with only one goal in mind – stealing your shipment. Because once you hand over your cargo to the freight forwarder, you don’t have visibility of your cargo anymore till there is some documentary proof like a freight forwarder’s receipt or bill of lading after the shipment. You may often receive messages claiming to be from the freight forwarder your contracted informing you of changes in banking details and asking for the freight and other charges to be sent to that account. It is very possible that scammers have hacked your forwarder’s account or are phishing you to get the money into their account.

Our report brings together threat and intelligence data from BSI’s supply chain security country risk intelligence tool, SCREEN and Moovit’s insurance risk management and loss prevention insights. We aim to engage in a proactive approach in preventing cargo crime and also minimising the financial loss resulting from cargo crime.

Mike Yarwood, shipping & warehouse lead, Moovit

South America topped the regional analysis with a whopping median value of $77,000 per theft, followed by Europe, USA, MEA, and Asia. While the research found that there were commonalities in the modalities involved and in the commodities targeted, there was some variation in the median value of the cargo affected. In terms of the types of cargo theft itself, Slash and Grabs had the biggest percentages 26% and hijackings accounting for 17%.

Hijacking was the most common method used in North and South America at 37% and 52% respectively whereas in Asia, theft from a facility was the most common at 43% compared with just 19% from hijacking. Insider threat has been identified by this report as a common vulnerability across the globe.. As organisations evolve and are becoming more and more secure in terms of cybersecurity, access controls etc, the recruitment of insiders becomes a more attractive option for those attempting to gain access.