Supply Chain - Information Sharing and Analysis Center
2014 3rd Quarter Supply Chain ISAC Report of Cargo Theft Activity
The Supply Chain Information Sharing and Analysis Center’s (SC-ISAC) primary
mission is to continue to facilitate communication among supply chain dependent
industry stakeholders in order to help secure the global supply chain. Towards this end,
the SC-ISAC has created a trusted community of manufacturers, shippers, distributors,
consignees, law enforcement and insurance entities, where critical information impacting
the supply chain can be shared.
This information, after being archived and analyzed, allows us to understand the actions
of the cargo criminals and how they react to industry and law enforcement actions related
to prevention and enforcement. Data still supports that identity theft and fictitious pick-up
activity is continuing to expand and our tried and true cargo thieves from South Florida
remain a significant and continuing threat using their known method of operation
targeting by commodity. Understanding the risks and preparing operational plans to
prevent both methods has proven to be the best deterrent to becoming a victim. Point of
pick up control is a must for the identity theft incidents so that freight theft investigators
will have solid information from which to launch an investigation.
Data
In 2014, during the 3rd quarter, the SC-ISAC recorded 165 incidents, up from the 140
reported in the 2014 2nd Quarter Cargo Theft Report but down from the 195 recorded in
the third quarter of 2013. An overall downward trend in incidents, which began to show
last year, has continued this quarter.
The majority of the 165 are categorized as Theft, but the Fraud category remains at a
higher percentage from the fictitious pick-up activity. Most of the fraud activity has
continued to target food, beverage and metal loads although other commodities have been
involved.
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Supply Chain - Information Sharing and Analysis Center
Cargo Theft Activity by State
In tracking Cargo Theft activity by state as reported to the SC-ISAC in the third quarter
of 2014, we see Texas continue to show significant cargo theft activity, reporting two
more incidents to the SC-ISAC than California for the fourth quarter in a row. Both
California and Texas easily outpaced the other involved states, including Florida,
Georgia, Illinois and New Jersey. These were the same states with significant incidents in
the last quarter report.
Theft Activity by State
50
45
40
35
30
25
20
15
10
5
0
47
45
8
7
NJ
9
4
CA
IL
Canada
TX
FL
6
TN
9
4
GA
WA
3rd Qtr
These six states should continue to be considered very high-risk locations as they
continually rate in the top of the charts. When you drill down further, you see hot spot
areas in these states around Dallas, the Los Angeles basin, Atlanta, Chicago, and Miami
while New Jersey had seven different incidents in seven different cities.
,
,
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©2014 SC-integrity, Inc. All rights reserved. 1702 N. Collins Blvd. Suite 200 Richardson, TX 75080, 214-377-0222
Supply Chain - Information Sharing and Analysis Center
Where Thefts Occur
In the Third Quarter of 2014, Street and Truck Stops were the top locations of thefts, with
yards dropping from the top to the bottom of the chart. This analysis changes and is less
consistent than any subject we look at. When you analyze these incidents more closely,
the one noteworthy fact you find is that the theft location is usually synonymous with
where the driver leaves the rig or trailer load unattended and unsecured for any period of
time. The organized criminals, following vehicles from distribution centers which are
being targeted for their commodity, very much are looking for this opportunity. This
chart should make you focus on orientation and education of your drivers to the
awareness of the ease with which rigs and loads can be taken, no matter how long they
are being left unattended and especially if they are laden with any of the targeted
commodities listed in this report.
*The unspecified category in the chart involves information received in batch data from
law enforcement agencies that did not designate the type of location where the theft
occurred.
Theft Activity by Location
3rd Qtr
Unspecified
36
Truck Stop
17
Street
17
Warehouse
7
Facility
7
Yard
6
0
5
10
15
20
25
30
35
40
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Supply Chain - Information Sharing and Analysis Center
When Thefts Occur
For the first time in the collection of this data, we are seeing, for the second straight
quarter, where the theft percentage on the weekend is lower than it ever has been.
Normally, the weekend thefts, if you include Mondays and Fridays has a percentage of
70% or more. Last quarter the percent fell to 62% and now this quarter it comes in at
57%, with Tuesdays showing 37 incidents. Although these last two quarters are showing
a change for the first time since this analysis started in 2005, the SC-ISAC would still
stress to supply chain operators that they should focus their time and energy on security
planning, prevention and preparation for the weekend and three day weekend time
periods, inputting controls and operations to deal with this time proven statistic and
reality while keeping an on this new trend.
Theft Incidents by Day
Weekend
48
3rd Qtr
Fri
14
Thu
21
Mon
33
Tue
37
Wed
13
0
10
20
30
40
50
60
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Supply Chain - Information Sharing and Analysis Center
What’s Stolen?
After the food commodity has dropped out of the top five charted products for the first
time in many quarters last report, it shot right back up to second this quarter, as consumer
electronics remained the number one targeted commodity for the second straight report.
The “other category” accounts for all types of products which do not have a designated
category in this analysis and it stays toward the top of the chart. Metals and Beverages
continue to stay in the top five just as they were last quarter. As a reminder, the organized
groups target by commodity, using the surveillance of trucks leaving distribution centers
containing the products they seek. If you are carrying these types of products in your
conveyances, the risk of disruption by theft goes up incrementally.
Most Stolen Commodity
16.24%
16%
13.68%
14%
12.82%
11.97%
12%
9.40%
10%
8.55%
6.84%
6%
5.98%
5.98%
4%
4.27%
4.27%
Furniture
8%
Automotive
18%
Computer & Peripherals
Bldg Spls
Clothing & Accessories
H&B
Bvg
Metals
Other
Food
0%
Consumer Electronics
2%
3rd Qtr
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Supply Chain - Information Sharing and Analysis Center
In analyzing the specific items within the commodities chart, the items have been very
diverse. Metal thefts, both steel and aluminum, were up and beverage theft usually
involve either alcohol or energy type drinks.
Specific Items Stolen
14
12
12
10
8
7
6
6
5
6
3
4
3
2
2
5
3
1
0
Alcohol NonAlcohol Electronics Appliances
Bvg
Consumer Electronics
Nuts
Meat
Seafood
Food
Beauty
Health
Steel
H&B
Aluminum
Metals
3rd Qtr
Loss Average
For the months of July, August and September 2014, we recorded dollar losses on 52
reported cargo theft incidents (31.5%) of the 165 involving vehicles, cargo or both. Those
52 incidents have an average loss amount of $173,528.00. If that average were spread
over the total of 165, the loss amount would be $28,632,120.00 for the third quarter.
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©2014 SC-integrity, Inc. All rights reserved. 1702 N. Collins Blvd. Suite 200 Richardson, TX 75080, 214-377-0222
Supply Chain - Information Sharing and Analysis Center
Summary
The cargo theft data collected during the months of July, August and September of 2014,
when added to and compared with previous reports, give strong and consistent patterns in
key areas, including where and when cargo thieves prefer to strike and the products they
target to steal. Although this quarter went up by 25 incidents from the previous quarter,
an overall downward trend in incidents continues over the year to year collection if
incidents. We are optimistic that the work of the SC-ISAC, the industry and law
enforcement are showing an overall impact.
As the SC-ISAC membership continues to share current and on-going investigative
reports, we are able to analyze the data and identify the methods of operations of the
cargo criminals. Over the past couple of years we have seen cargo theft groups change
their activities in response to both actions of the industry and law enforcement. Organized
cargo groups have shown a willingness to learn proven business practices, coupled with
mastering current technology in order to advance their criminal enterprise. Supply chain
stakeholders should ask themselves if they have the aptitude for change, resiliency and
innovation in order to win this battle.
We appreciate our membership and strive to provide robust and meaningful analysis
based on collected theft reports. The sharing of information allows us all to continue to
learn and enhance our awareness of the risks which currently exist in the supply chain
and as operators to respond to the challenges that information provides to build the best
and most secure supply chains.
For further information about the Supply Chain ISAC (www.sc-isac.org) or the data used
in this report, please contact April Tiger at [email protected] or JJ Coughlin at
[email protected].
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©2014 SC-integrity, Inc. All rights reserved. 1702 N. Collins Blvd. Suite 200 Richardson, TX 75080, 214-377-0222