Policy & Compliance
Both BIFA and CLECAT have been working on speci fi c guidance aimed at preventing freight forwarders falling victim to identity fraud Guidance on preventing identity-based cargo theft
A recurring theme of BIFA’s victim of fraud and/or theft. Sometimes, one leads onto the next. For instance, identity theft is perpetrated in order to facilitate theft of cargo by deception – quite often the entire load. BIFA has prepared guidance on due diligence in an effort to prevent Members falling victim of such criminal activity. In addition current workload is trying to assist Members who are the CLECAT, a trade association representing European freight forwarding and logistics trade associations, has been working on specific guidance aimed at preventing freight forwarders falling victim to identity fraud. This is an ongoing issue and particularly affects users of freight exchanges, where fictitious hauliers bid for loads that are then stolen. Europe-wide issue It would be quite wrong to presume that cargo theft is a British problem – it is a Europe-wide issue. Cargo theft poses a significant risk for the logistics sector. Traditional theft, which is a physical crime, tends to follow the cargo flows along the main road networks. However, there is a growing threat posed by deception-based schemes. Criminals, many of whom display good operational knowledge of freight forwarding processes, exploit procedural weaknesses,
forged documents, fraudulent domain names and email addresses, and other forms of digital impersonation. Former physical processes such as visiting clients before granting them credit facilities have been replaced in many cases by digital checks. It is fair to say that in some cases the checks on a company’s credit-worthiness are over-reliant on data that has not been fully analysed and in some cases submitted by criminals to Companies House, which has a disclaimer on its website confirming that accounts are not checked. Having read CLECAT’s guidance, BIFA notes that it provides a systematic framework for strengthening due diligence and verification procedures at all stages of a supply chain business relationship. The guidance considers the following key areas: • Carrier onboarding and verification, • Secure communication practices,
• Financial safeguards, • Physical loading/unloading procedures, including documentation checks, • Driver and vehicle identification checks, • If the worst happens and a crime is committed, how the matter should be reported and to whom. Playing catch-up In many ways the criminals have gained a march on the police and trade, and both are playing catch- up in effort to minimise the former’s impact. It has to be remembered that the former only needs to be successful once to obtain what they want – trade has to be 100% successful in protecting itself to prevent losses. BIFA would like to thank CLECAT for making the Guide on Preventing Identity-Based Cargo Theft available.
“ Criminals only need to be successful once to
obtain what they want – trade has to be 100% successful in protecting
itself to prevent losses
12 | August 2026
www.bifa.org
Made with FlippingBook Annual report maker