The growing demand for artificial intelligence (AI) infrastructure has led to a dramatic rise in cargo theft, with companies and consumers facing significant financial burdens as a result. Approximately three months ago, a U.S. shipping broker reported the loss of nearly a dozen loads of copper and electronics intended for AI data centers, amounting to an estimated cost of nearly US$5 million. Keith Lewis, head of operations at risk-assessment firm Verisk CargoNet, emphasized the strategic nature of modern theft, stating, “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.”
According to CargoNet, supply chain crime losses in Canada and the U.S. soared 60% in the previous year, reaching nearly US$725 million (over $1 billion Canadian). Experts suggest that the actual number of thefts is likely higher, as many incidents go unreported due to concerns over reputational damage and increased insurance costs. The average value of stolen cargo rose by 36%, driven by organized groups targeting high-value items. Notably, the theft of metals, particularly copper, increased by 77%, correlating with the surging demand for components essential to AI infrastructures.
The price of a 25-ton load of copper has seen a significant rise, reaching over US$300,000, reflecting the growing importance of copper in various AI-related hardware. In addition to copper, criminals are increasingly targeting computing hardware and cryptocurrency mining equipment, which has been singled out as a “top-tier target” by CargoNet's report.
Thieves now employ advanced tactics, including artificial intelligence, to facilitate cargo theft. Instead of simple break-ins, criminals use AI to automate phishing emails aimed at obtaining access to transport company data and employee credentials. Once these systems are breached, they can gather information regarding shipment schedules and routes. Thieves can impersonate legitimate carriers, often based on fabricated digital identities, offering low transportation rates for lucrative shipments. A common scam, known as double brokering, involves misleading truckers into unwittingly participating in the theft by posing as legitimate shippers.
Jim Yarbrough, leader of the global intelligence team at supply chain risk adviser BSI Group, explained how unsuspecting truckers are often given false orders and manifests, making the theft appear legitimate. The stolen goods rarely return to the market in their rightful form, often appearing instead as legitimate products in retail stores. As Lewis pointed out, “There’s no serial numbers on a spool of copper.”
Artificial intelligence technologies also facilitate the creation of fraudulent shipping orders and images to deceive clients, further complicating the landscape of cargo theft. For example, thieves may generate AI-created images of non-existent vehicle malfunctions to stall detection and reporting of the crime. More sophisticated tactics such as GPS spoofing mislead tracking systems regarding the actual location of shipments, illustrating the high-tech nature of modern cargo crime.
Canada ranks among the top dozen countries for cargo theft, with a 2025 report placing it 12th in global incident numbers, accounting for about 1% of the world’s cargo thefts. This statistic appears disproportionate when considering Canada's reputation as a safe, low-crime nation. Ontario is reported to have the majority of cargo theft incidents, particularly concentrated around the Toronto area. The financial repercussions of these thefts ultimately affect consumers, as companies transfer their increased insurance and security costs into retail prices.
Experts advocate for enhanced security measures to combat this rising wave of cargo theft. Recommendations include in-cab cameras, integrated security systems, and improved resources for law enforcement. Emily Williams, vice-president at fleet management company Geotab, pointed out that fragmentation in managing vehicles, trailers, and security systems creates vulnerabilities that criminals exploit. By implementing better security frameworks that incorporate real-time visibility and sensor systems, companies can better monitor their operations and mitigate risks. Furthermore, rigorous vetting of contractors and employees can help prevent scams like the aforementioned copper and electronics theft, where an apparent logistics company claimed to operate a fleet much larger than it actually had.
Lewis stressed the need for better defenses and emphasized the importance of taking cargo theft seriously as a business risk. “We’ve got to have better defenses,” he stated, advocating for a proactive approach to preventing losses in an increasingly targeted landscape.
