<p>The purpose of the paper is to explore the subject of phantom shipments, which are a relatively new and under-researched risk to transportation security that allows stealing or embezzling cargo by falsifying freight documentation and manipulating digital records. The study looks at the modalities of such schemes, structural weak points in the logistical network that permit such exploits and the ways in which the governance and technology can be used to enhance resilience to such security breaches.&#xa0;This study has conducted a conceptual analysis involving empirical data and the application of the theory of agency to analyse cases involving phantom shipment in logistics hubs in Asia, the Middle East and North America. The cases are analysed to find the typology of fraud, risk factors and vulnerability of transportation systems. Findings: The study recognises phantom shipments as a high-tech fraud of freight that includes the falsification of documentation, impersonation, and manipulation of data of the carrier. The scheming takes advantage of the lack of digitalisation, disjointed verification and boilerplate institutional accountability. To enhance the security of transportation, it is necessary to authenticate logistics participants, increase the real-time verification opportunities and use a model of governance in which the technological and procedural control is built in.&#xa0;This is because the research re-packages phantom shipment fraud as a challenge in transportation security and governance, instead of a logistical wastefulness. It offers a fresh conceptual basis to gain security around global freight networks by combining evidence related to the policy with technological recommendations based on case.</p> Graphical abstract <p></p>

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The Phantom shipment threat: strengthening transportation security against freight fraud in global supply chains

  • Shreyansh Srinivasan

摘要

The purpose of the paper is to explore the subject of phantom shipments, which are a relatively new and under-researched risk to transportation security that allows stealing or embezzling cargo by falsifying freight documentation and manipulating digital records. The study looks at the modalities of such schemes, structural weak points in the logistical network that permit such exploits and the ways in which the governance and technology can be used to enhance resilience to such security breaches. This study has conducted a conceptual analysis involving empirical data and the application of the theory of agency to analyse cases involving phantom shipment in logistics hubs in Asia, the Middle East and North America. The cases are analysed to find the typology of fraud, risk factors and vulnerability of transportation systems. Findings: The study recognises phantom shipments as a high-tech fraud of freight that includes the falsification of documentation, impersonation, and manipulation of data of the carrier. The scheming takes advantage of the lack of digitalisation, disjointed verification and boilerplate institutional accountability. To enhance the security of transportation, it is necessary to authenticate logistics participants, increase the real-time verification opportunities and use a model of governance in which the technological and procedural control is built in. This is because the research re-packages phantom shipment fraud as a challenge in transportation security and governance, instead of a logistical wastefulness. It offers a fresh conceptual basis to gain security around global freight networks by combining evidence related to the policy with technological recommendations based on case.

Graphical abstract