Special Agent, NICB Chicago- Midwest 815/651-4260 scovey@nicb.org - PowerPoint PPT Presentation

Steve Covey Special Agent, NICB Chicago- Midwest 815/651-4260 scovey@nicb.org Midwest Cargo Security Council midwestcargosecuritycouncil.com

What we’ll cover…. What cargo theft is / isn’t Types / MO’s / Groups Preventative tip ips / / a couple le thin ings that mig ight help lp

Cargo Theft is the criminal taking of any cargo including, but not limited to: goods, chattels, money, or baggage that constitutes, in whole or in part, a commercial shipment of freight moving in commerce, from any pipeline system, railroad car, motortruck. or other vehicle, or from any tank or storage facility, station house, platform, or depot, or from any vessel or wharf, or from any aircraft, air terminal, airport, aircraft terminal or air navigation facility, or from any intermodal container, intermodal chassis, trailer, container freight station, warehouse, freight distribution facility, or freight consolidation facility. For purposes of this definition, cargo shall be deemed as moving in commerce at all points between the point of origin and the final destination, regardless of any temporary stop while awaiting transshipment or otherwise.

What is Cargo Theft ?? WAREHOUSE BURGLARIES TRAILER / CONTAINER THEFTS TRAILER BREAK-INS MAJOR INTERNAL THEFTS

WHATS THE DIFFERENCE BETWEEN ORC & CARGO ? ORGANIZED RETAIL CRIME (ORC) = OFF THE SHELF CARGO THEFT = IN TRANSIT, ANYWHERE BETWEEN MANUFACTURER & THE SHELF

Why Should We Care? • Overseas Profits - where’s the money going • Gangs & Organized Crime – Huge Profits • Retail costs passed back to the consumer • Public Safety * • Food / Product Tampering

Tied to Multiple Chicago Cargo Thefts Post arrest intelligence showed Hamas Hezbollah ties to Syria, Lebanon & Palestinian areas. Where’s the money going?

Kansas and Surrounding States

Definitions and Scope • This slideshow includes statistics on cargo theft events that occurred in Kansas and nearby states in 2014-2017 current to September 10, 2017. • The states included include: MO, KS, AR, OK, IA, CO, and NE. • Commodity data is measured in the total number of commodity categories reported stolen. • Events involving more than one commodity will have each commodity category counted once. • Loss value data is measured in the sum of the loss value. • All other charts are measured in the total number of cargo theft events reported to CargoNet.

Theft by State 2014 2015 2016 2017 45 Number of Reported Cargo Thefts 40 35 30 25 20 15 10 5 0 AR OK MO NE CO KS IA 2017 5 2 1 1 3 1 1 2016 8 11 3 1 4 4 2015 16 3 2 5 1 4 2014 12 5 7 5 • Arkansas has the most recorded cargo thefts in this analysis, followed by Oklahoma and Missouri. • In 2016, reports of cargo theft in Arkansas decreased by 50% year-over-year. While Oklahoma increased by 266%, Missouri +50%, and Kansas +300%. • Cargo theft in Colorado spiked in 2016 and 2017. • Generally, this region loses just over $2 million to cargo theft a year. This only accounts for the value of the cargo and not the vehicles or any other costs associated with the theft.

Theft by Quarter Q1 Q2 Q3 Q4 45 Number of Reported Cargo Thefts 40 35 30 25 20 15 10 5 0 2014 2015 2016 2017 Q4 13 6 12 Q3 6 3 9 3 Q2 5 9 3 7 Q1 6 24 9 4 • Generally cargo thefts stay fairly low within the region between Q2 and Q3. • Cargo thefts increase in Q4 and continue to increase through the first quarter of the following year.

Theft by Day of the Week 2014 2015 2016 2017 35 Number of Reported Cargo Thefts 30 25 20 15 10 5 0 Sun Mon Tue Wed Thu Fri Sat 2017 0 2 3 1 0 1 7 2016 4 2 4 2 7 7 7 2015 7 3 3 2 9 5 13 2014 3 3 12 4 4 2 2 • Saturday had the most reported cargo thefts in this region. • In 2015 and 2016, cargo theft in this region spiked on Thursday and remained high until Sunday. • Saturday and Tuesday have had the most cargo thefts in 2017 YTD.

Theft by Commodity 2014 2015 2016 2017 40 Number of Reported Cargo Thefts 35 30 25 20 15 10 5 0 Food and Vehicles and Apparel and Commercial/I Building Pharmaceutic Personal Electronics Household Other Metals Unknown Beverage Accessories Accesorries ndustrial Materials al/Medical Care/Beauty 2017 3 2 2 5 1 0 0 1 0 0 0 0 2016 7 15 2 1 0 2 0 2 1 3 0 0 2015 22 4 3 2 1 1 2 2 0 0 3 2 2014 5 4 4 2 5 4 4 3 1 0 0 • Food and Beverage products are the most targeted in this region. Meat products are the most stolen commodity sub type followed by alcoholic beverages. • In 2016, theft of food and beverage products dropped in favor of electronics. Oklahoma and Arkansas have the most electronics thefts year over year. The most targeted electronics in this region are computers, cell phones, and cell phone accessories. • Currently in 2017, “Other” commodities increased by 400% from 2016.

Theft by Location Type 2014 2015 2016 2017 Number of Reported Cargo Thefts 35 30 25 20 15 10 5 0 Warehouse/ Secured Unsecured Carrier/Ter Other Truck Stop Parking Lot On Route Side of Road Drop Lot DC Yard Yard minal Lot 2017 1 2 2 6 2 0 0 0 1 0 2016 3 2 7 5 0 8 4 2 1 1 2015 16 9 7 0 6 0 1 1 1 1 2014 11 10 4 2 2 0 1 0 0 0 • “Other” locations are the most common theft locations in the region. These include locations such as residential neighborhood s, airports, and rail yards. • Following “Other” are truck stops and warehouse locations. However, without theft by fictitious pick up warehouses would be a less common theft location. • In 2017, secured yards are the most targeted location followed by truck stops, warehouses, and parking lots.

Theft by Incident Type 2014 2015 2016 2017 90 Number of Reported Cargo Thefts 80 70 60 50 40 30 20 10 0 Theft Burglary & Theft Fictitious Pick-up Theft - Attempt Shortage 2017 10 4 0 0 0 2016 20 5 4 4 0 2015 26 10 5 0 1 2014 23 2 5 0 0 • Straight thefts are the most common incident type. This means the theft was not fraudulent in nature. • Warehouse break-ins and trailer break-in/pilferages are classified as burglary and theft incidents. • Four or five fictitious pickups were reported in this region a year. Fictitious pickups most commonly targeted

Several different types of cargo thieves • 1) Trailer burglars / shoppers • 2) Local crews with CDL’s, will steal FTL, unspecific targets • 3) Traveling crews, targeted loads & high value product • 4) Fictitious / Fraudulent Pickups **Theft crews often overlap MO’s……..Organized vs Disorganized

Shoppers Trailer break-ins from lots, truck stops, “secure” yards Enfamil from an I-39 truck stop recovered during a traffic stop by Rear of a truck stop at I-80 & Rt 47, Morris, IL state troopers Sony PS3 from a trailer - $25K

Local/Regional Crews Similar to shoppers but drivers will be involved and steal full trailers of products, which usually are not targeted. Usually stay in a single metro area & steal from repeat targets.

Chicago’s Most Prolific • Active crew responsible for millions $$ in thefts in the Chicago area • Utilize multiple chase cars for counter-surveillance • Vehicles equipped with surveillance cams & other gizmos

Organized Traveling Crews Targeted loads, usually high value Practice the same MO, whether on a burglary, truck theft or document fraud Will travel hundreds of miles to commit a single theft Long weekends & Holidays

Local cell phone warehouse targeted multiple times by organized Cuban crews June 2011

• Cubans staying in Chicago suburbs - rented van from O’Hare, brought their TT • Police placed a tracker on van while Cubans were having lunch • LG Warehouse under Cuban surveillance…Cubans under police surveillance • Load of 19,000 cell phones leaves facility in a TT/ST, followed by van & TT • Police instruct driver to park at truck stop off I-65, Indiana • Cubans broke into truck but were confronted by truckers & scared off • 2 in custody; 3 outstanding

Cellphone Rooftop Burglary Chicago Suburbs Two Full Trailers of cell phones, worth several million Dollars stolen over Superbowl weekend

2009 Fire Escape Access to Rooftop: Wooden pallet used to climb to Ladder

2009 Rooftop entry: Most likely tool used: cordless circular saw

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Recent HV Thefts - Computer products & a Familiar MO Niles, Michigan Late October 2017 Computer monitors Entire rig stolen when driver was in TS Dickson, Tennessee November 26, 2017 Mixed electronics Team drivers in TS for 10 minutes; rig stolen Both loads originated at known computer/electronic warehouses

Fictitious Pickup= Huge Profit, Minimal Risk Bad guys get: 1) The Stolen Product 2) Sometimes get paid for delivery 3) File an Insurance Claim for the product they steal 4) Commit a crime very few understand