ORGANIZED CRIME IS TARGETING U.S. SUPPLY CHAINS:

CONGRESS MUST ADDRESS RAMPANT CARGO THEFT & FRAUD

• Since the onset of the pandemic in 2020, federal, state, and local law enforcement agencies have observed a sharp uptick in cargo theft and fraud in the supply chain. The American Transportation Research Institute calculated that cargo theft is costing the trucking industry over $18 million per day.  Across the entire supply chain, cargo theft is estimated to cost up to $35 billion annually.

• Strategic theft, a category of crime that uses cyber fraud and identity manipulation to divert freight, has surged by 1,500% since 2021 according to CargoNet.  Organized Theft Groups (OTGs) are actively exploiting the highly mobile and intermodal nature of the supply chain to illegally obtain goods that are later sold for economic gain.  Ninety percent of motor carriers are small businesses operating 10 trucks or fewer, and they are under enormous strain to counter their technologically advanced adversaries.  

• OTGs target cargo at every point in the supply chain where goods are in transit and utilize a variety of sophisticated tactics to illegally obtain cargo, including strategic theft, straight theft, fictitious pick-ups, cyber attacks, identity theft, hijacking, hostage freight, and warehouse burglaries, among many others.

• As supply chains have digitized, so too have the theft tactics utilized by OTGs. OTGs can steal freight remotely by exploiting the technology that has been embedded into supply chains to move cargo more efficiently.  Because most shipments are brokered via load boards and online platforms, it is relatively easy for OTGs to pose as legitimate brokers or carriers and fraudulently engage in business transactions with unwitting supply chain partners.

• Cargo theft is not a victimless crime. Consumers, local communities, and businesses bear the costs of rising prices.

• The transnational aspect of cargo theft poses a national security threat.  The proceeds from stolen goods finance other criminal activities, including drug trafficking, organized crime, and even potentially terrorism.  

• There are also health and safety risks associated with the reintroduction of stolen goods (including agricultural products, food, beverages, livestock, and pharmaceuticals) into the supply chain.

Pass the Combatting Organized Retail Crime Act (CORCA) (H.R. 2853, S. 1404)

• Establishes the Organized Retail and Supply Chain Crime Coordination Center within Homeland Security Investigations at the Department of Homeland Security to:

– Coordinate federal, state, and local law enforcement efforts against organized retail and supply chain crime;
– Partner with private industry to share threat information and collaborate on investigations;
– Track trends and issue annual public reports; and
– Review and optimize grant programs and training to enhance enforcement.

• Strengthens legal tools for law enforcement by:

– Allowing criminal forfeiture for convictions under 18 U.S. Code § 659 (interstate shipments), § 2314 (transportation of stolen goods), and § 2315 (sale or receipt of stolen goods);
– Enabling prosecution of organized retail and supply chain crime groups using interstate or foreign commerce (e.g., the internet) to facilitate crimes; and
– Permitting aggregation of theft values totaling $5,000 or more over 12 months as a basis for charging under §2314 and § 2315.

Pass the Household Goods Shipping Consumer Protection Act (H.R. 880, S. 337)

• Provides the Federal Motor Carrier Safety Administration (FMCSA) with the necessary tools, resources, and authorities to protect consumers from fraud, while also helping small businesses in the household goods shipping industry protect their businesses and reputations.

• Restores FMCSA’s ability to impose civil penalties against unauthorized brokers and other bad actors, and requires companies operating in the household goods sector to maintain a legitimate place of business.

Stakeholder Support for CORCA

• 7-Eleven, Inc.
• Aéropostale Inc.
• Agriculture Transportation Coalition – AgTC
• American Cotton Shippers Association
• American Logistics Association
• American Trucking Associations
• Arkansas Trucking Association
• At Home Stores
• Axon Enterprise, Inc.
• Best Buy Co., Inc.
• Big River Coalition
• BNSF Railway
• Brooks Brothers Inc.
• Burlingtons
• C.H. Robinson Worldwide. Inc.
• Dollar Tree, Inc.,
• EasyPost
• Eddie Bauer LLC
• Florida Trucking Association
• Footwear Distributors & Retailers of America (FDRA)
• GE Appliances, Haier
• Gemini Shippers Association
• Idaho Trucking Association
• Indiana Motor Truck Association
• Intermodal Association of North America
• International Council of Shopping Centers (ICSC)
• International Foodservice Distributors Association
• International Housewares Shippers Association (IHSA)
• International Warehouse Logistics Association (IWLA)
• JCPenney
• Kentucky Retail Federation
• Leather and Hide Council of America
• Lowe's
• Lucky Brand
• Maine Motor Transport Association
• Maryland Association of Chain Drug Stores
• Maryland Food Industry Council
• Maryland Motor Truck Association
• Maryland Retailers Alliance
• Milwaukee Tool
• Minnesota Trucking Association
• National Association of Manufacturers
• National District Attorneys Association
• National Industrial Transportation League (NITL)
• National Insurance Crime Bureau
• National Milk Producers Federation
• National Retail Federation
• National Small Business Association (NSBA)
• Nautica
• NCBFAA Shippers Association
• Nebraska Trucking Association
• North Dakota Motor Carriers Association
• Ohio Trucking Association
• Oregon Trucking Association
• Pennsylvania Motor Truck Association
• Personal Care Products Council (PCPC)
• Pirate Ship
• QVC Group, Inc.
• Recycled Materials Association (ReMA)
• Retail Industry Leaders Association (RILA)
• Saks Global
• Tailored Brands
• Target Corporation
• The American Property Casualty Insurance Association
• The Association of American Railroads (AAR)
• The DHL Group
• The Fashion Accessories Shippers Association (FASA)
• The Fashion Jewelry and Accessories Trade Association (FJATA)
• The Home Depot
• The Kroger Co.
• The National Confectioners Association
• The Retail Merchants of Hawaii
• Toy Shippers Association (TOYSA)
• Tractor Supply Company
• Transportation Intermediaries Association (TIA)
• Travelers
• Trucking Association of New York
• TTI, maker of RYOBI branded power tools
• U.S. Chamber of Commerce
• U.S. Dairy Export Council
• U.S. Meat Export Federation
• United Parcel Service, Inc.
• Utah Trucking Association
• Virginia Retail Federation
• Virginia Trucking Association
• Walgreens
• West Virginia Trucking Association
• Wisconsin Motor Carriers Association
• World Shipping Council