Cyber risk is no longer just the IT department's problem in today's fast-moving transportation industry. What once felt like a concern for data security teams or finance offices has evolved into a systemic threat that touches nearly every part of the logistics chain, including physical cargo theft. For carriers, brokers, and final-mile operators, the implications are serious: the same type of fraud once used to divert wire transfers is now being used to redirect entire freight loads.

As threat actors become more sophisticated, the insurance industry is adapting fast. Is your transportation business keeping up?

Fictitious pickups and freight fraud are escalating

Traditional cargo theft conjures images of trailers stolen at rest stops or fences cut at unsecured lots. But the game has changed. Increasingly, thieves are leveraging cyber tactics to impersonate legitimate carriers, reroute deliveries, and walk away with high-value goods, often before the real company even knows what happened.

These attacks aren't random. Cybercriminals are infiltrating logistics systems, monitoring delivery schedules, and inserting themselves between shippers and carriers. In one real-world case, a fraudster hacked a trucking company's system, discovered the scheduled pharmaceutical pickup, and called the legitimate driver to reschedule it. Then, a fake truck, complete with the correct branding, arrived on time, loaded up the cargo, and disappeared.

These so-called "fictitious pickups" are on the rise. One report noted a 46% increase in cargo theft, in the U.S. between 2023 and 2024 with cyber-facilitated fraud playing a significant role.

When cargo insurance doesn’t cover cyber-enabled thefts

As the nature of theft evolves, insurers are reevaluating how their policies respond. Historically, insurers wrote cargo insurance to protect goods in transit, assuming known, vetted motor carriers were handling the cargo. But what happens when no legitimate carrier ever picks it up?

In one such instance, bad actors stole $500,000 in high-end clothing during a fraudulent pickup. Insurers denied the claim because the policy covered only cargo entrusted to a legitimate motor carrier. The shipper handed the cargo to an impostor in this case, so the coverage didn’t apply.

In another case, a criminal intercepted email communications and rerouted payments over several months, resulting in a $400,000 cyber loss. The client discovered the fraud only after the damage had already occurred.

Both examples underscore the same point: today's losses blur the line between cybercrime and physical theft, and many insurance policies haven't kept pace.

Why logistics and final-mile providers are prime cyber targets

Transportation has long been a high-volume, high-velocity business. But that same transactional speed makes it a ripe target for sophisticated theft.

Many trucking and logistics companies operate with minimal cyber protection, especially in the final-mile space. Final-mile (or last-mile) delivery sector is booming with new entrants, technology platforms, and third-party intermediaries. Load boards and freight-matching apps have added convenience but also created new vulnerabilities. Fraudsters can now easily pose as carriers, co-brokers, or delivery drivers, exploiting fragmented systems and limited vetting processes.

Worse still, some of the industry's traditional players are entering final-mile delivery without the security infrastructure to match, creating fresh exposure.

New cargo insurance requirements: Focus on risk controls

Insurance companies are responding quickly. One major cyber insurer recently introduced a policy endorsement specifically to address theft by fraud and deceit. Others are reviewing their cargo forms to plug gaps and clarify intent. That may sound like good news, but there's a catch: coverage is becoming conditional.

Just as cyber insurance carriers now require companies to use multi-factor authentication (MFA) or meet minimum security protocols, cargo insurers will soon demand proof of operational safeguards. That means tracking tools, verification platforms, and documented risk controls will likely become prerequisites, not optional extras.

Protect your fleet: 5 steps to prevent cyber-related cargo theft

Act now to get ahead of exclusions and stay insurable. Fortunately, many of the needed tools and strategies already exist:

1. Real-time cargo tracking: Affordable technology allows tagging individual cartons inside a pallet. Early detection equates to faster recovery.
2. Third-party verification platforms: These vet drivers and carriers before they arrive at your dock. Think of it as a “blue check” system for freight.
3. Direct carrier communication: Cut through spoofed emails and intermediaries by verifying all scheduling changes via trusted channels.
4. Employee training: Educate your staff to recognize suspicious requests and respond swiftly in the event of a theft or hijacking.
5. Law enforcement coordination: Immediate reporting dramatically improves the chances of cargo recovery.

Insurers are watching. If you can’t demonstrate these controls, you may be unable to secure or afford the protection you need.

Cybercrime poses a physical, systemic threat in the transportation industry

Businesses once treated cyber risk as a siloed issue, but it has become an enterprise-wide concern. From data theft to full truckload diversion, today's threats cross digital and physical boundaries, prompting the insurance industry to adjust.

Stop thinking of cyber risk as an IT problem and start seeing it for what it is: an expanding risk in every part of the supply chain. Failing to prepare increases the risk of loss and jeopardizes coverage when something goes wrong.