AI boom driving surge in cargo theft costing supply chains billions
Thieves using generative AI to target high-value shipments for data centres; theft values jumped 36% in a year.
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Cargo theft in Canada and the U.S. has exploded in the past year, driven by thieves zeroing in on shipments bound for artificial intelligence data centres and using AI tactics to execute the heists.
Supply chain crime losses rose 60 per cent to nearly US$725 million — over $1 billion Canadian — according to CargoNet, a risk-assessment firm. The average theft value climbed 36 per cent, "driven by more selective, high-value targeting by organized groups," the report found. Theft of metals jumped 77 per cent, fuelled largely by copper demand for AI infrastructure — cables, wiring, cooling systems.
Three months ago, a U.S. shipping broker watched nearly a dozen loads of copper and electronics bound for AI data centres vanish in transit, costing the company nearly US$5 million. Keith Lewis, head of operations at CargoNet, described the shift: "The bad guys are good at marketing. It's so much more strategic now, so much more targeted. They know what's hot and they know what's selling."
Computing hardware and cryptocurrency mining equipment have emerged as "top-tier targets" for criminal groups. The price of a 25-tonne copper load has risen by roughly a third to more than US$300,000 over five years, following AI infrastructure demand.
Criminals are deploying increasingly sophisticated tactics. Thieves use generative AI to automate phishing emails at scale, gaining access to transport company data and employee credentials. Once inside a system, they identify when and where high-value shipments are scheduled. They then pose as legitimate carriers — sometimes using false digital IDs obtained through malware — and offer low rates to transport the loads.
One scam, known as double brokering, sees thieves pose as legitimate shippers and subcontract the theft to truckers who remain unaware. Jim Yarbrough, who leads the global intelligence team at supply chain risk adviser BSI Group, explained: "They're being told, 'Go here, pick this up, here's the purchase order, here's the invoicing, here's the manifest.' Everything looks legit. They even deliver it."
Companies are losing goods right from their dock doors. Many more thefts go unreported because companies fear reputational damage or higher insurance premiums, experts say.
The surge is reshaping supply chain security and pushing costs higher for consumers.