Quick Definition
Pilferage is partial cargo theft—the unauthorized removal of goods from a shipment—most often occurring during transit, at cross-dock facilities, or in unsecured yards. Unlike full cargo theft, pilferage can go unnoticed for days or weeks, making it one of the most persistent and costly forms of freight fraud.
Pilferage occurs when small quantities of cargo are stolen incrementally, often without disrupting delivery schedules or triggering immediate alarms. Because shipments still arrive—just incomplete—losses are frequently misclassified as damage, shortages, or administrative errors.
What makes pilferage especially dangerous today is how often it intersects with digital fraud. Bad actors increasingly exploit weak identity controls, falsified documentation, or system access to enable or conceal physical theft.
Pilferage is no longer just a “yard problem” or a “warehouse issue.”
It is a hybrid threat, sitting at the intersection of physical security and digital trust.
Where Pilferage Commonly Happens
Pilferage tends to occur at points where visibility, accountability, or verification breaks down, including:
- In-transit stops and layovers;
- Cross-dock and transload facilities;
- Unsecured yards and drop lots;
- High-volume distribution centers; and
- Facilities with shared or temporary labor.
High-value and easily resold commodities—such as electronics, food, pharmaceuticals, alcohol, and consumer goods—are especially vulnerable.
Why Pilferage Is Often Linked to Broader Fraud
Pilferage rarely exists in isolation. It often accompanies—or is enabled by—larger fraud schemes, including:
- Falsified or altered bills of lading;
- Digital impersonation of carriers or drivers;
- Unauthorized system access to shipment details;
- Misuse of carrier identity or credentials; and
- Manipulated appointment or pickup information.
In many cases, digital compromise creates the opportunity for physical theft.
This is why modern pilferage prevention requires more than cameras and locks—it requires verified identities, trusted data, and shared standards across the freight ecosystem.
Who Is Most At Risk
Pilferage impacts every part of the transportation ecosystem, but risk is highest for:
- Fleet security and loss-prevention teams;
- Warehouse and yard operators;
- Shippers moving high-value or regulated freight;
- Cargo insurers and claims professionals; and
- Risk and fraud teams bridging cyber and physical security.
If your organization touches freight—even indirectly—you are part of the attack surface
Key Warning Signs of Pilferage
While pilferage is designed to avoid detection, common indicators include:
- Repeated “short” deliveries without damage reports;
- Shrinkage patterns tied to specific routes or facilities;
- Discrepancies between digital records and physical counts;
- Inconsistent or altered shipping documents; and
- Unverified carrier or driver identities.
These red flags often signal systemic weaknesses, not isolated incidents.
Why Digital and Physical Security Must Work Together
Traditional cargo security focuses on gates, guards, and surveillance.
Modern fraud prevention requires trust, verification, and visibility across both digital and physical workflows.
Pilferage prevention improves dramatically when organizations:
- Verify carrier and identity data;
- Protect access to shipment and routing information;
- Use standardized, trusted digital signals; and
- Share intelligence across departments and partners.
This is the foundation of NMFTA’s fraud-prevention approach—connecting cybersecurity, identity assurance, classification integrity, and digital standards into one coordinated framework.