London Maritime Academy is a trade name for London Premier Group
Subscribe to our newsletter
Posted On: 2/6/2026, 9:05:05 PM
Last Update: 2/6/2026, 9:05:05 PM
Global cargo insurers are experiencing heightened challenges due to rising theft and freight fraud in international supply chains, with concerns that losses are now driven by advanced digital deception rather than just physical crime.
The International Union of Marine Insurance (IUMI) and the Transported Asset Protection Association (TAPA) EMEA have reported a significant rise in cargo crime impacting Europe, the Americas, and Africa, particularly affecting Latin America and parts of Africa, which face notably violent and organised attacks.
This escalation complicates underwriting, claims handling, and risk selection, amidst ongoing supply chain pressures and heightened scrutiny of loss ratios in cargo lines.
Data from TAPA’s intelligence system indicates nearly 160,000 cargo-related crimes in 129 countries from 2022 to 2024, with losses estimated in billions of euros. Insurers emphasize this highlights the vulnerability of cargo in marine insurance as theft patterns outpace traditional risk controls.
Likewise, fraud is becoming an increasing driver of loss in logistics and freight forwarding, as criminal networks exploit digital vulnerabilities, posing challenges for insurers in assessing counterparty risk, alongside ongoing issues of hijackings and theft.
Thorsten Neumann, president and CEO of TAPA EMEA, highlighted a rising trend where criminals merge physical theft with identity fraud. This involves using forged documents and cloned business identities to manipulate cargo movements.
Further, he noted the prevalence of shell companies, cloned firms, and counterfeit insurance certificates, expressing concern that artificial intelligence could amplify these fraudulent methods, leading to more frequent and severe losses.
Maritime Safety Courses in London focus on combating freight fraud and cargo theft, highlighting the shift from physical hijacking to digital 'strategic theft.' Key issues include double-brokering, fake carrier identities, and phishing. The courses cover AI-driven fraud, vulnerabilities in the supply chain, and the use of technology, such as tracking devices, to mitigate losses.
Insurers face challenges from fraudulent carriers on digital freight platforms, which can disrupt due diligence, raise dispute risks, and complicate subrogation, especially in cases with multiple intermediaries or cross-border issues.
IUMI and TAPA EMEA are advocating for supply-chain participants, including insurers, brokers, and underwriters, to reevaluate security expectations and contractual controls. They have released guidance emphasising the need for stricter vetting of carriers and drivers, better verification of insurance documents, and increased scrutiny of unusual booking or routing behaviour.
The importance of secure facilities, effective route planning, and adherence to recognised security standards for loss prevention was also stressed.
Besides, Lars Lange, secretary general of IUMI, noted that digital freight exchanges challenge the insurance market. He stressed the need for freight platforms to prevent fraudulent carriers and advocated for improved identity verification and fraud detection measures, like multifactor authentication, to reduce avoidable losses for insurers.
The warnings indicate that cargo insurers are tightening underwriting criteria and reassessing accumulation exposures due to increasing digital fraud and physical theft.
This shift necessitates a review of policy wordings, risk surveys, and pricing models to adapt to the evolving threat landscape that surpasses traditional security measures.
In closing, marine underwriters and brokers now focus not only on the movement of goods but also on the identity and trustworthiness of those transporting them when assessing cargo risk.
Read more news:
