Damage from Freight Theft in Germany Amounts to 1.3 Billion Euros

According to the Working Group on Theft Prevention in Goods Transport and Logistics and the German Insurance Association (GDV), approximately the cargo of around 26,000 trucks is stolen in Germany each year. The direct material damage from such freight thefts amounts to 1.3 billion euros. Additionally, there are further damages from penalties for delivery delays, repair costs, as well as loss of sales and production downtimes in industry and trade amounting to 900 million euros.

Hansel Oh Director of Product Marketing at Brivo

(PresseBox; Bethesda) Unlike shoplifting in shopping streets, freight thefts are less influenced by opportunity and economic circumstances. They are usually better planned, more sophisticated, and rely on deception to be successful. While retailers have techniques to minimize opportunistic shoplifting, it is likely to be more challenging for companies trying to combat freight theft. This is because these thefts exploit systemic issues and can only be addressed by looking at the system as a whole, rather than just individual elements.

How do freight thefts work?

In crime films, freight thefts are often depicted as quite violent and dramatic, but in reality, they are much more mundane and quite sophisticated. A less refined technique involves attacking trucks in secured parking lots. Since these secured parking lots are often used by drivers who need to take a break, the thefts are only discovered upon departure when the thieves are already long gone.

A more sophisticated method involves thieves posing as drivers. When a distribution center is expecting someone to pick up a truck or specific goods, a supposed driver with fake documents can easily steal those goods. This type of theft is usually quite well planned. It requires at least fake documents and may involve hacking or surveillance activities to find the right timing for the theft. It can even happen that thieves pose as carriers or establish a “phantom” logistics company that does not actually exist. Even more sophisticated is the infiltration of criminals into legitimate shipping companies, who then specifically steal valuable cargo.

Is outdated technology the problem?

Part of the problem is old, existing technologies that no longer meet the demands of cargo security. Some systems rely too heavily on paper records, outdated technology, or silo applications that do not integrate well with others. Even if part of the supply chain is modernized, it does not mean that other components will be updated at the same time.

According to a recent report by Brivo, a provider of cloud-based access control and smart building technologies, nearly half (49%) of the surveyed security experts indicate that they resist changes to systems they have known their entire professional lives. This is understandable when it comes to security. New systems bring uncertainty – exactly what security experts want to avoid.

In the supply chain, often each participant – shipper, driver, warehouse staff – uses a different, independent, and often isolated system. This lack of coherence and the system gaps create vulnerabilities that can give criminals an advantage. Many criminal gangs are familiar with these systems and are able to exploit them where the supply chain is weakest.

Taking holistic measures

One response to freight theft would be to examine the system that has failed and improve it. For example, if goods were stolen from a parking lot, security patrols and video surveillance should be strengthened. Or if staff were deceived by a fake ID, training should be conducted to recognize such forgeries.

The problem with these measures is that they do not address the underlying issue. Supply chains have vulnerabilities because the systems are not integrated, and these gaps allow criminals to infiltrate. For instance, a security officer can only conduct checks based on the information provided to them. If the security system they are using cannot communicate with other systems, there will always be gaps. Criminals exploit this lack of integration to find weaknesses. Only by integrating all systems and networking their communication will it be possible to slow down this new wave of freight thefts.

A solution offers a modernized technology package with central security management:

• Access systems: These should be automated to eliminate human error. For example, an automated license plate recognition system can allow only authorized vehicles access to certain areas. Human intervention should not be completely eliminated, but an automated system provides a more reliable first line of defense that can be supported by human action when necessary.
• Mobile credentials: Access permissions on mobile devices, such as via NFC credentials, are much harder to forge than driver’s licenses. A system that relies on mobile identification documents can also be linked to other applications to show where a driver is located and whether they are expected soon.
• Optimized video surveillance: Video surveillance is often used to provide evidence to law enforcement after something goes wrong, or it is monitored in real-time by security personnel to ensure the safety of the premises. Camera technology can identify individuals who are not where they should be and alert security forces to problems immediately.

The integration of such systems means that the control data they provide can be cross-referenced and analyzed. Anomalies are displayed in real-time rather than being analyzed afterward to determine what happened. A more modern technology package also means that newer technologies are much easier to integrate. AI and machine learning are already being used in many access control systems and related technologies. Without modernization, it is impossible to leverage the benefits of AI, and without integration, the necessary usage data is not available to make the right decisions.

Viewing systems as a whole

When it comes to security, and especially preventing freight theft, logistics companies must view their systems as a whole and examine where they can be integrated with other systems to provide more comprehensive protection.

Photo: © Brivo