Global cargo insurers are facing mounting pressure as theft and freight fraud intensify across international supply chains, with industry bodies warning that losses are no longer being driven solely by physical crime but by increasingly sophisticated digital deception.
The International Union of Marine Insurance (IUMI) and the Transported Asset Protection Association (TAPA) EMEA have jointly flagged a sharp escalation in cargo crime affecting Europe, the Americas and Africa, with Latin America and parts of Africa experiencing some of the most violent and organized attacks. The trend is adding complexity to underwriting, claims handling and risk selection at a time when supply chains remain stretched and loss ratios in cargo lines are under close scrutiny.
Data from TAPA’s intelligence system recorded close to 160,000 cargo-related crimes across 129 countries between 2022 and 2024, with total losses estimated to run into the billions of euros. Insurers say the figures underline why cargo remains one of the most exposed lines within marine insurance, particularly as theft patterns continue to evolve faster than traditional risk controls.
While hijackings, warehouse break-ins and opportunistic theft remain prevalent, both organizations warn that fraud is now a growing driver of loss activity. Criminal networks are increasingly exploiting digital vulnerabilities in logistics and freight forwarding, posing new challenges for insurers assessing counterparty risk.
Thorsten Neumann, president and chief executive of TAPA EMEA, said criminals are combining physical theft with identity fraud, using forged documentation and cloned business profiles to gain access to cargo movements. “We are seeing shell companies, cloned legitimate firms and the routine use of fake insurance certificates, forged email domains and look-alike websites,” he said. “The concern is that artificial intelligence will make these tactics easier to scale, increasing both the frequency and severity of losses.”
For insurers, the shift has implications beyond claims payouts. Fraudulent carriers operating on digital freight platforms can undermine due diligence processes, increase dispute risk and complicate subrogation efforts, particularly when losses involve multiple intermediaries or cross-border jurisdictions.
In response, IUMI and TAPA EMEA are urging supply-chain participants - including insurers, brokers and underwriters - to reassess security expectations and contractual controls. The organizations have issued joint guidance calling for tighter vetting of carriers and drivers, enhanced verification of insurance documents and credentials, and closer scrutiny of abnormal booking or routing behaviour. Greater reliance on secure facilities, robust route planning and recognized security standards was also highlighted as critical to loss prevention.
Lars Lange, secretary general of IUMI, said digital freight exchanges represent a particular pressure point for the insurance market. “Freight platforms have a key role to play in preventing bogus carriers from operating,” he said. “Without stronger identity verification and fraud detection - including multifactor authentication - insurers will continue to face avoidable losses that are difficult to recover.”
The warnings come as cargo insurers are already tightening underwriting criteria in high-risk corridors and re-examining accumulation exposures linked to logistics hubs and last-mile delivery. As digital fraud increasingly intersects with physical theft, insurers may need to revisit policy wordings, risk surveys and pricing models to reflect a threat landscape that now extends well beyond locks, fences and GPS tracking.
