The Canadian Underwriter recently reported on a large cargo theft that occurred in the U.S. about three months ago. An American shipping broker lost nearly a dozen truckloads of copper and electronic equipment destined for artificial intelligence (AI) data centres when the shipments disappeared while in transit.
The theft resulted in losses approaching US$5 million. Supply chain crime losses in Canada and the United States climbed 60 per cent last year, reaching nearly US$725 million — more than $1 billion Canadian. According to the Insurance Bureau of Canada (IBC), cargo theft costs the Canadian economy $5 billion a year.
Many believe the true losses are likely much higher, as some businesses choose not to report thefts out of concern for reputational damage or increased insurance costs.
Risk assessment firms warn that cargo thieves have become increasingly sophisticated. Rather than relying on pure opportunity, such as a driver parking in an unsecure spot or leaving their doors unlocked, criminal groups are carefully targeting products that are in high demand and easy to resell, making their operations far more strategic than in the past.
Interestingly, the rapid expansion of AI infrastructure is fuelling the sharp rise in cargo theft. In addition, criminals are now using AI itself to find, track and steal valuable shipments.
A growing problem
Organized theft rings are focusing more and more on high-value freight moving through known transport routes … and they are getting very good at it.
The average value of stolen shipments jumped 36% in 2024, which is attributed to criminals targeting premium cargo. Metal thefts alone rose 77%, largely driven by demand for copper.
The demand for copper is closely tied to the AI boom. The metal is used for wiring, cabling and cooling infrastructure when building data centres. Over the past five years, the value of a 25-tonne shipment of copper has increased by roughly one-third, and is now more than US$300,000.
Computer hardware and cryptocurrency mining equipment are also some of the most sought-after targets for organized criminal groups.
How criminals get their goods
Thieves are using generative AI to help design automated phishing campaigns in order to gather employee credentials and access company systems. Once they are in, they can identify when valuable loads are scheduled to move and where they will be picked up or delivered.
With that important information, criminals can then pretend to be legitimate cargo companies, often using stolen identities and fake emails addresses, logos, and brands, and submit attractive transportation bids to win lucrative shipment contracts.
An increasingly common tactic is known as double brokering. Criminals pose as legitimate transportation providers and subcontract loads to unsuspecting truck drivers who have no idea they are participating in a theft. The paperwork involved often appears completely legitimate, with drivers receiving purchase orders, manifests and invoices that seem authentic. They then proceed with deliveries believing everything is above board.
Companies then unknowingly hand over valuable cargo directly from their loading docks while the drivers remain unaware that a major theft is taking place.
Once stolen, the products often disappear into legitimate supply chains and may eventually appear on store shelves in Canada or abroad with no obvious indication of their criminal origins. In many cases, buyers are lined up before the cargo is even stolen.
Commodities such as copper are especially difficult to trace because they do not have unique identifiers or serial numbers.
AI also helps criminals create convincing fake documentation. Fraudsters can generate counterfeit shipping records and even fake images to reassure customers that shipments are on the way as promised. They will even send AI-generated photos showing broken-down trucks, dashboard warning lights or a police traffic stop. These images are often used to buy time while thieves move stolen goods farther from authorities.
Further technology-enabled fraud includes identity theft and GPS spoofing.
The financial impact
According to a 2025 report from BSI Consulting and transport insurer TT Club, Canada ranks among the top dozen countries in the world for cargo theft. We account for approximately 1% of all global cargo theft incidents and ranked 12th overall.
Ontario is the home of the majority of cargo thefts in Canada, with the Greater Toronto Area remaining the country’s primary hotspot.
Ultimately, the financial burden extends beyond businesses and ends up costing the customer. As usual, increased insurance premiums, enhanced security measures and replacement costs are often passed on to consumers through higher prices.
One of the biggest vulnerabilities is the fragmented nature of many transportation operations. When vehicle management, trailer tracking and security systems operate independently, criminals can exploit the resulting gaps in security. Integrated monitoring systems combining sensors, cameras and real-time data could help identify suspicious activity and verify whether reported delays or mechanical issues are actually legitimate.
For example, if a driver reports a maintenance problem, systems could compare that claim against actual vehicle diagnostic information to determine whether that issue exists.
Experts also emphasize the importance of carefully vetting contractors and carriers. The company contracted to move the missing copper and electronics shipment claimed to operate only six trucks despite agreeing to transport 10 or 11 loads simultaneously. That discrepancy should have been viewed as a significant warning sign.
Cargo insurance
Coverage for cargo depends on the type of business. In Alberta, independent transport companies that own their vehicles but are transporting someone else’s property require cargo insurance in addition to a regular commercial vehicle insurance policy. Cargo insurance is often built into general transportation insurance designed especially for hauling companies, and can include coverage for loss during transport and damage during loading or unloading.
More information on what types of businesses and what sorts of cargo requires cargo insurance can be found on the Government of Alberta website.
If your business owns the cargo being delivered, as well as the delivery vehicle, cargo insurance should not be required, however we recommend speaking with an experienced insurance broker such as us at Lane’s about your particular circumstances. Business insurance is very flexible and customizable. We can help you perform a quick risk assessment of your business that will clarify the exact kind of coverage you need.
When filing a claim for cargo theft, which coverage it falls under may depend on the location of the crime. If the driver is out on the road when robbed, the claim will likely fall under cargo insurance. If cargo is stolen from a loaded truck parked on a business’ property and the business owns the goods, the claim will likely fall under commercial property insurance.
Trust Lane’s for your commercial insurance needs
Life is full of surprises, and not all of them are good ones. You’ve worked hard to grow your business, and you need to protect that investment with the right customized commercial insurance policies.
Commercial insurance policies available through Lane’s include:
