As we hit the halfway point of 2025, U.S. businesses are facing a sharp rise in supply chain fraud. From stolen shipments to scammers posing as trusted partners, the risks are growing fast. Here’s a quick look at what’s happening — and what you can do to protect your business.
Alarming fraud trends in U.S. supply chain
Record cargo theft incidents: According to Verisk CargoNet, the U.S. and Canada reported 3,625 cargo theft incidents in 2024, marking a 27% increase from the previous year. The average value per theft rose to $202,364, with total losses estimated at over $454 million.
Emergence of identity-based thefts: Criminals are increasingly impersonating legitimate freight companies, utilizing stolen identities and digital platforms to divert shipments. This tactic has led to significant losses for major companies and has prompted legislative efforts to combat fraud.
Surge in broker fraud: The practice of “double brokering,” where shipments are re-brokered without the original broker’s knowledge, has seen a 400% increase in complaints. This fraudulent activity is estimated to cost the industry between $500 and $700 million annually.
What you can do
Verify suppliers carefully: Use direct phone confirmation for any changes to vendor info and conduct background checks to ensure legitimacy. Regular audits and whistleblower hotlines can also help catch red flags early.
Leverage smart tech: Adopt tools like real-time shipment tracking, AI-based risk monitoring, and multi-factor authentication to catch fraud attempts before they do damage.
Train your team: Ensure staff, especially in procurement and AP, are trained to spot phishing attempts, invoice scams, and other fraud schemes. Ongoing education is key.
Strengthen contracts: Tighten your contracts with clear standards, penalties, and compliance clauses. Regularly review and diversify vendors to reduce risk exposure.
Collaborate with industry and law enforcement: Share threat intel, align with industry best practices, and participate in joint fraud prevention initiatives. Staying informed is a team effort.
Supply chain fraud poses a significant threat to U.S. businesses, but with vigilant practices and strategic measures, companies can safeguard their operations against these evolving risks.
