Does Logistics Matter? Answering YES to the question in our latest podcast episode is Anne Reinke, President of the Transportation Intermediaries Association (TIA).
In a time when supply chains are under increasing pressure, logistics has proven its value—keeping goods moving and economies afloat. However, with that prominence comes new challenges, and one issue that is taking centre stage is fraud in the logistics industry. From cargo theft to cyber scams, Anne shares how fraud is evolving and what the industry is doing to fight back.
Why Fraud Prevention Matters
The pandemic highlighted the critical role of logistics, as surging demand for online deliveries tested every part of the supply chain. But alongside legitimate operations came bad actors drawn to the wealth within the industry. “When you’re a $300 billion sector,” Anne explains, “you’re going to attract people looking for easy money.”
The problem? Fraud is no longer limited to small-scale theft. Organized crime rings and sophisticated scams are now targeting carriers, brokers, and shippers. Fraudsters exploit gaps in outdated systems, posing as legitimate businesses to steal cargo, hold freight hostage, or trick companies into double-paying for shipments.
For logistics professionals, the consequences are severe: financial losses, reputational damage, and strained customer relationships. Anne notes that fraud costs companies an average of $400,000 per incident, with smaller firms often hit the hardest.
Technology: A Double-Edged Sword
Technology is a powerful tool in logistics, enabling faster deliveries and improved efficiency. But as Anne warns, it also creates new vulnerabilities. Cyber scams—like phishing and spoofing—are on the rise, making it easier for fraudsters to disguise themselves as trusted partners.
However, technology also plays a major role in the fight against fraud. Logistics companies are now using advanced fraud detection tools and carrier verification systems to flag red flags before fraud occurs. While some companies spend over $25,000 annually on fraud prevention, Anne sees this as a necessary investment to secure their operations.
The Importance of Collaboration
Fraud prevention isn’t just about technology or regulation—it requires collaboration across the entire supply chain. Organizations, companies, and workers should work together to raise awareness, share data, and advocate for stronger protections.
From shippers to frontline workers, everyone has a role to play. Anne emphasizes the importance of training staff to spot red flags, verify credentials, and follow secure processes when handing over freight. “Fraud prevention starts with the basics—like picking up the phone and validating who you’re working with,” she says.
Unlocking a Secure Future for Logistics
If you want to learn more about the rising challenges of fraud in logistics, how industry leaders are fighting back, and the role of technology in securing the supply chain, listen to the podcast episode below or wherever you get your podcasts.
