While international trade discussions and tariff policy whiplash have dominated many industry conversations this year, it was a more familiar—and frustrating—challenge that took center stage at the 2025 Transportation Intermediaries Association (TIA) Capital Ideas Conference in San Antonio: freight fraud. 

In his inaugural address as TIA president, Chris Burroughs didn’t mince words, declaring that freight fraud has reached “crisis levels” and citing a staggering 80,000+ complaints in the Federal Motor Carrier Safety Administration’s database. As brokers and third-party logistics (3PL) firms navigate this threat landscape, the conference offered critical insights into prevention strategies, technological solutions, and the harsh realities of seeking justice after fraud occurs. 

The evolving nature of cargo theft 

The days of opportunistic cargo theft have given way to sophisticated and strategic schemes. During the “High-Tech Heist: The New Threat to Cargo Theft” session, Joe Ohr and Ben Wilkins from the National Motor Freight Traffic Association (NMFTA) highlighted a significant shift in both tactics and targets. 

“The cargo being stolen has shifted as well,” noted Ohr. “It formerly was commodities like electronics—high-value shipments—but today are non-serialized items, anything easy to launder back into the supply chain like eggs or baby formula. It’s harder to track down.” 

This evolution reflects criminals’ adaptation to market realities. Items that can be quickly redistributed into legitimate supply chains—even something as seemingly mundane as a shipment of bacon—have become prime targets precisely because they’re difficult to track and easy to “flip” back to businesses like restaurants. 

Technology is a double-edged sword in fraud prevention 

While technology vendors across the TIA exhibit floor showcased AI and blockchain solutions to combat fraud, Wilkins emphasized technology’s paradoxical role: “Technology has been a double-sided sword—the more tech that we enable, the more we open ourselves up to new attacks.” 

This sentiment was echoed by fraud expert Frank Abagnale, whose life inspired the 2002 film “Catch Me If You Can,” during his keynote address. Abagnale highlighted how technology has dramatically simplified fraudulent activities compared to his analog-era crimes. What once required painstaking physical document manipulation can now be accomplished “in a matter of minutes with AI,” making fraud detection increasingly challenging. 

The enforcement gap: When ‘we can’t help you’ becomes the norm 

One of the most frustrating aspects of freight fraud remains the lack of enforcement. Conference attendees shared all-too-familiar stories of reaching out to federal authorities with no action taken afterward. 

As incoming TIA Chair Rob Kemp of DRT Transportation recounted, “We just had a situation not too long ago. We ended up calling the FBI and were disappointed to hear the FBI say, and you guys have probably heard this, ‘We can’t help you.’ So, if they can’t help you, who can help you?” 

This enforcement gap underscores why internal prevention strategies have become so critical. Abagnale drove this point home, noting that even when fraudsters are caught and convicted, financial recovery is unlikely. According to government studies he cited, approximately 91% of court-ordered restitution will never be collected. 

Prevention: Creating multilayered defense systems 

Across multiple sessions, experts emphasized that prevention requires a multi-faceted approach combining organizational structure, technology, and human vigilance: 

1. Structural safeguards 

The NMFTA experts advocated for a clear separation between compliance and operations: “As a broker, take compliance out of operations. We make bad decisions to accommodate for our customers, and one bad decision can create a snowball effect.” 

This structural approach creates necessary checks and balances, preventing the operational pressures of moving freight quickly from compromising security protocols. 

2. Red flag recognition 

Participants identified several critical warning signs brokers should watch for: 

• Motor carrier numbers inactive for six months or longer 
• Equipment that doesn’t match what’s being hired 
• Variations in email addresses 
• VIN numbers that don’t match registration records 
• Driver identification info that doesn’t match expectations at pickup 
• Equipment that doesn’t match company branding 

3. Continuous education and testing 

“Continuing education is key, especially on a regular basis,” noted the NMFTA panel. “You can’t expect every person to stay on top, so allowing internal tests from IT of phishing examples—and training on new red flags.” 

This includes running internal phishing tests and regular training updates as fraud techniques evolve. The human element remains critically important, as one panelist noted, “In fraud prevention, we say—we have to be right 100% of the time, but the bad actors only need to be right 1% of the time for fraud to occur.” 

Legislative hope on the horizon 

While enforcement remains challenging, there are promising developments in the legislative arena. The bipartisan Combating Organized Retail Crime Act of 2025, sponsored by Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Senator Catherine Cortez Masto (D-Nev.), aims to establish a coordinated multi-agency response to tackle evolving trends in organized theft. 

This legislation would create a department under the Department of Homeland Security specifically designed to investigate and prosecute thieves. While similar bills introduced in 2022 and 2023 didn’t cross the finish line, industry advocates are hopeful that the third attempt will succeed. 

Burroughs also highlighted TIA’s engagement with Congress on the next surface transportation reauthorization bill, which will provide another legislative vehicle to address freight fraud and other key industry concerns. 

The TIA as a bulwark against fraud 

Outgoing TIA Chair Mark Christos of SolvLogix Inc. emphasized the association’s role in maintaining industry standards and protecting its members from fraud. “Every time I’ve been on the phone with a shipper or a prospective customer who has reservations about something really unfortunate that happened with them, relative to brokerage, I find that it’s not with a TIA member,” Christos noted. 

This perspective reinforces the value of industry standards, best practices, and collective vigilance that membership organizations like TIA provide. 

The growing cost of inaction 

The financial impact of freight fraud continues to mount. Last year’s estimated losses reached a staggering $454.9 million—and that’s just the reported figure. The actual impact is likely much larger when factoring in lost revenue, business disruption, and financial fraud. Moreover, the average value per theft rose to $202,364 in 2024, up from $187,895 the previous year. 

These costs come at a particularly challenging time for the industry, as uncertainty surrounding tariffs and international trade creates additional financial pressure and potential new avenues for fraud. 

Vigilance as the new normal 

The sobering reality is that freight fraud isn’t going away. As one panelist noted when asked about the next evolution in cargo theft, “We spend a lot of time thinking about this. When we identify these issues, we always ask what the next iteration is and how can we combat it?” 

While trade issues, nearshoring, and broker transparency regulations remain important to TIA and its members, cargo theft represents an existential threat that affects livelihoods and company survival in an uncertain business climate. 

By implementing rigorous prevention strategies, leveraging technology appropriately, and supporting industry-wide initiatives, brokers and 3PLs can protect themselves and their partners. In this new landscape, vigilance isn’t just good practice, it’s a necessity.