Cargo theft is becoming a growing concern across Canada as organized crime syndicates mix physical heists with sophisticated online fraud to fleece businesses out of millions. According to data from CargoNet, losses in Q2 2026 reached an estimated $304.6 million - more than double the figure for the same period in 2025.
From an insurer’s perspective, it’s an issue that demands much closer attention - sooner rather than later.
“Cargo theft has become a growing concern as organized criminals exploit complex supply chains, high-value goods, and gaps in shipment verification,” explained Michel Brosseau, manager, technical risk services at Echelon Insurance. “The GTA remains one of North America’s highest-risk regions, with other hotspots including Montreal, Calgary, Edmonton, and Vancouver.”
As Brosseau explained, one key driver is the rise of strategic theft in which criminals use deception, such as fraudulent pickups, identity misrepresentation, altered shipment details, and digital tools in order to gain control of freight without force.
“As freight volumes increase and businesses rely more heavily on third-party logistics providers, there are more handoff points where cargo can be exposed,” he told IB. “Food products, household goods, pharmaceuticals, vehicle parts, metals, and technology equipment remain frequent targets. For insurers, the concern extends beyond the stolen goods. Cargo theft can trigger delivery delays, operational disruption, liability claims, increased insurance costs, and reputational harm for affected businesses.”
In the war against cargo theft, it’s about being proactive not reactive. For businesses, there are certain steps that can be taken in order to prevent cargo theft before an incident occurs. As Brosseau told IB, the most effective approach is a layered security strategy that combines people, processes, and technology.
Drivers, dispatchers, and logistics personnel should be trained to:
“Many strategic theft incidents succeed because employees unknowingly bypass standard procedures,” added Brosseau. “Consistent training can significantly reduce this risk.”
Loaded trailers should be parked in:
“Avoid leaving loaded equipment unattended for extended periods, especially at unsecured truck stops or roadside locations,” said Brosseau.
Best practices include:
“These controls improve both theft prevention and cargo recovery efforts,” Brosseau said.
Because many thefts now involve digital infiltration rather than physical theft, businesses should implement:
“Cybersecurity has become a critical component of cargo security,” added Brosseau.
Thorough due diligence should include:
“This is particularly important when engaging new drivers or transportation partners,” said Brosseau.
In order to mitigate these risks, verification and communication are critical lines of defence for businesses in 2026. As Brosseau explained, many schemes rely on criminals posing as authorized carriers, drivers, or customers, while strong verification procedures make these frauds harder to execute.
“Organizations should verify pickup requests through trusted contact information, not details provided in a suspicious message,” he told IB. “From there, they should confirm changes to delivery locations, routes, or contact details through secondary channels. Use known contacts and established communication protocols before releasing loads, and document approvals and shipment transfers. Finally, require dispatch and drivers to escalate unusual requests before acting.
“Consistent communication between dispatch, drivers, warehouses, and customers helps identify issues early. When shipment data and routing instructions are regularly confirmed, inconsistencies are easier to detect before cargo is released. As cargo theft shifts toward fraudulent acquisition, verification processes are becoming as important as physical security measures.”
For businesses looking to mitigate any potential incidents down the line, preparation is key. And that preparation begins with having the right insurance partner.
“Insurance helps businesses recover financially after cargo theft, but it should be part of a broader risk management strategy,” explained Brosseau. “Cargo theft can lead to losses such as stolen goods, legal liability, customer claims, business interruption, investigation costs, and higher operating expenses. Appropriate cargo and transportation insurance can help offset covered losses, support continuity, and protect balance sheets from major incidents.”
And, according to Brosseau, insurers also expect strong controls, including theft prevention, employee training, verification procedures, cybersecurity, and cargo security technologies.
“These practices can improve a company’s risk profile and insurability,” he told IB. “The strongest approach combines operational controls, verification and communication procedures, physical and digital security, and comprehensive insurance coverage.
“Together, these measures reduce theft risk and help ensure financial protection when incidents occur.”
About Echelon Insurance
Echelon Insurance was founded in 1998 and became a member of the CAA Club Group of Companies (CCG) in 2019. As a leading Specialty insurer, Echelon works closely with its Broker partners to provide Personal and Commercial insurance solutions to protect Canadian families and businesses.
For more information about Echelon, visit www.echeloninsurance.ca.
This article was created in partnership with Echelon Insurance
