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The curious case of the disappearing Lamborghinis

When Sam Zahr first saw the gray Rolls-Royce Dawn convertible with orange interior and orange roof, he knew he’d found a perfect addition to his fleet. “It was very appealing to our clientele,” he told me. As the director of operations at Dream Luxury Rental, he outfits customers in the Detroit area looking to ride in style to a wedding, a graduation, or any other event with high-end vehicles—Rolls-Royces, Lamborghinis, Bentleys, Mercedes G-Wagons, and more. But before he could rent out the Rolls, Zahr needed to get the car to Detroit from Miami, where he bought it from a used-car dealer.  His team posted the convertible on Central Dispatch, an online marketplace that’s popular among car dealers, manufacturers, and owners who want to arrange vehicle shipments. It’s not too complicated, at least in theory: A typical listing includes the type of vehicle, zip codes of the origin and destination, dates for pickup and delivery, and the fee. Anyone with a Central Dispatch account can see the job, and an individual carrier or transport broker who wants it can call the number on the listing. Zahr’s team got a call from a transport company that wanted the job. They agreed on the price and scheduled pickup for January 17, 2025. Zahr watched from a few feet away as the car was loaded into an enclosed trailer. He expected the vehicle to arrive in Detroit just a few days later—by January 21.  But it never showed up. Zahr called a contact at the transport company to ask what happened.  “He’s like, I don’t know what you’re talking about.”  Zahr told me his contact angrily told him they mostly ship Coca-Cola products, not luxury cars. “He was yelling and screaming about it,” Zahr said. Over the years, people have broken into his business to steal cars, or they’ve rented them out and never come back. But until this day, he’d never had a car simply disappear during shipping. He’d expected no trouble this time around, especially since he’d used Central Dispatch—“a legit platform that everyone uses to transport cars,” he said.  “That’s the scary part about it, you know?” Wreaking havoc Zahr had unwittingly been caught up in a new and growing type of organized criminal enterprise: vehicle transport fraud and theft. Crooks use email phishing, fraudulent paperwork, and other tactics to impersonate legitimate transport companies and get hired to deliver a luxury vehicle. They divert the shipment away from its intended destination and then use a mix of technology, computer skills, and old-school chop shop techniques to erase traces of the vehicle’s original ownership and registration. These vehicles can be retitled and resold in the US or loaded into a shipping container and sent to an overseas buyer. In some cases, the car has been resold or is out of the country by the time the rightful owner even realizes it’s missing. “Criminals have learned that stealing cars via the web portals has become extremely easy, and when I say easy—it’s become seamless,” says Steven Yariv, the CEO of Dealers Choice Auto Transport of West Palm Beach, Florida, one of the country’s largest luxury-vehicle transport brokers. Individual cases have received media coverage thanks to the high value of the stolen cars and the fact that some belong to professional athletes and other celebrities. In late 2024, a Lamborghini Huracán belonging to Colorado Rockies third baseman Kris Bryant went missing en route to his home in Las Vegas; R&B singer Ray J told TMZ the same year that two Mercedes Maybachs never arrived in New York as planned; and last fall, NBA Hall of Famer Shaquille O’Neal had a $180,000 custom Range Rover stolen when the transport company hired to move the vehicle was hacked. “They’re saying they think it’s probably in Dubai by now, to be honest,” an employee of the company that customized the SUV told Shaq in a YouTube video. “Criminals have learned that stealing cars via the web portals has become extremely easy, and when I say easy—it’s become seamless.” Steven Yariv, CEO, Dealers Choice Auto Transport of West Palm Beach, Florida But the nationwide epidemic of vehicle transport fraud and theft has remained under the radar, even as it’s rocked the industry over the past two years. MIT Technology Review identified more than a dozen cases involving high-end vehicles, obtained court records, and spoke to law enforcement, brokers, drivers, and victims in multiple states to reveal how transport fraud is wreaking havoc across the country. RICHARD CHANCE It’s challenging to quantify the scale of this type of crime, since there isn’t a single entity or association that tracks it. Still, these law enforcement officials and brokers, as well as the country’s biggest online car-transport marketplaces, acknowledge that fraud and theft are on the rise.  When I spoke with him in August, Yariv estimated that around 8,000 exotic and high-end cars had been stolen since the spring of 2024, resulting in over $1 billion in losses. “You’re talking 30 cars a day [on] average is gone,” he said. Multiple state and local law enforcement officials told MIT Technology Review that the number is plausible. (The FBI did not respond to a request for an interview.) “It doesn’t surprise me,” said J.D. Decker, chief of the Nevada Department of Motor Vehicles’ police division and chair of the fraud subcommittee for the American Association of Motor Vehicle Administrators. “It’s a huge business.” Data from the National Insurance Crime Bureau (NICB), a nonprofit that works with law enforcement and the insurance industry to investigate insurance fraud and related crimes, provides further evidence of this crime wave. NICB tracks both car theft and cargo theft, a broad category that refers to goods, money, or baggage that is stolen while part of a commercial shipment; the category also covers cases in which a vehicle is stolen via a diverted transport truck or a purloined car is loaded into a shipping container. NICB’s statistics about car theft show that it has declined following an increase during the pandemic—but over the same period cargo theft has dramatically increased, to an estimated $35 billion annually. The group projected in June that it was expected to rise 22% in 2025. NICB doesn’t break out data for vehicles as opposed to other types of stolen cargo. But Bill Woolf, a regional director for the organization, said an antifraud initiative at the Port of Baltimore experienced a 200% increase from 2023 to 2024 in the number of stolen vehicles recovered. He said the jump could be due to the increased effort to identify stolen cars moving through the port, but he noted that earlier the day we spoke, agents had recovered two high-end stolen vehicles bound for overseas. “One day, one container—a million dollars,” he said. Many other vehicles are never recovered—perhaps a result of the speed with which they’re shipped off or sold. Travis Payne, an exotic-car dealer in Atlanta, told me that transport thieves often have buyers lined up before they take a car: “When they steal them, they have a plan.”  In 2024, Payne spent months trying to locate a Rolls-Royce he’d purchased after it was stolen via transport fraud. It eventually turned up in the Instagram feed of a Mexican pop star, he says. He never got the car back. The criminals are “gonna keep doing it,” he says, “because they make a couple phone calls, make a couple email accounts, and they get a $400,000 car for free. I mean, it makes them God, you know?” Out-innovating the industry The explosion of vehicle transport fraud follows a pattern that has played out across the economy over the past roughly two decades: A business that once ran on phones, faxes, and personal relationships shifted to online marketplaces that increased efficiency and brought down costs—but the reduction in human-to-human interaction introduced security vulnerabilities that allowed organized and often international fraudsters to enter the industry. In the case of vehicle transport, the marketplaces are online “load boards” where car owners, dealerships, and manufacturers post about vehicles that need to be shipped from one location to another. Central Dispatch claims to be the largest vehicle load board and says on its website that thousands of vehicles are posted on its platform each day. It’s part of Cox Automotive, an industry juggernaut that owns major vehicle auctions, Autotrader, Kelley Blue Book, and other businesses that work with auto dealers, lenders, and buyers. The system worked pretty well until roughly two years ago, when organized fraud rings began compromising broker and carrier accounts and exploiting loopholes in government licensing to steal loads with surprising ease and alarming frequency. A theft can start with a phishing email that appears to come from a legitimate load board. The recipient, a broker or carrier, clicks a link in the message, which appears to go to the real site—but logging in sends the victim’s username and password to a criminal. The crook logs in as the victim, changes the account’s email and phone number to reroute all communications, and begins claiming loads of high-end vehicles. Cox Automotive declined an interview request but said in a statement that the “load board system still works well” and that “fraud impacts a very small portion” of listings. “Every time we come up with a security measure to prevent the fraudster, they come up with a countermeasure.” Bill Woolf, a regional director, National Insurance Crime Bureau Criminals also gain access to online marketplaces by exploiting a lax regulatory environment. While a valid US Department of Transportation registration is required to access online marketplaces, it’s not hard for bad actors to register sham transport companies and obtain a USDOT number from the Federal Motor Carrier Safety Administration, the agency that regulates commercial motor vehicles. In other cases, criminals compromise the FMCSA accounts of legitimate companies and change their phone numbers and email addresses in order to impersonate them and steal loads. (USDOT did not respond to a request for comment.) As Bek Abdullayev, the founder of Super Dispatch, one of Central Dispatch’s biggest competitors, explained in an episode of the podcast Auto Transport Co-Pilot, “FMCSA [is] authorizing people that are fraudulent companies—people that are not who they say they are.” He added that people can “game the system and … obtain paperwork that makes [them] look like a legitimate company.” For example, vehicle carrier insurance can be obtained quickly—if temporarily—by submitting an online application with fraudulent payment credentials. The bottom line is that crooks have found myriad ways to present themselves as genuine and permitted vehicle transport brokers and carriers. Once hired to move a vehicle, they often repost the car on a load board using a different fraudulent or compromised account. While this kind of subcontracting, known as “double-­brokering,” is sometimes used by companies to save money, it can also be used by criminals to hire an unwitting accomplice to deliver the stolen car to their desired location. “They’re booking cars and then they’re just reposting them and dispatching them out to different routes,” says Yariv, the West Palm Beach transport broker.  “A lot of this is cartel operated,” says Decker, of the Nevada DMV, who also serves on a vehicle fraud committee for the International Association of Chiefs of Police. “There’s so much money in it that it rivals selling drugs.” Even though this problem is becoming increasingly well known, fraudsters continue to steal, largely with impunity. Brokers, auto industry insiders, and law enforcement told MIT Technology Review that load boards and the USDOT have been too slow to catch and ban bad actors. (In its statement, Cox Automotive said it has been “dedicated to continually enhancing our processes, technology, and education efforts across the industry to fight fraud.”) Jake MacDonald, who leads Super Dispatch’s fraud monitoring and investigation efforts, put it bluntly on the podcast with Abdullayev: the reason that fraud is “jumping so much” is that “the industry is slowly moving over to a more technologically advanced position, but it’s so slow that fraud is actually [out-]innovating the industry.” A Florida sting As it turns out, the person Zahr’s team hired on Central Dispatch didn’t really work for the transport company.  After securing the job, the fraudster reposted the orange-and-gray Rolls convertible to a load board. And instead of saying that the car needed to go from Miami to the real destination of Detroit, the new job listed an end point of Hallandale Beach, Florida, just 20 or so miles away. It was a classic case of malicious double-­brokering: the crooks claimed a load and then reposted it in order to find a new, unsuspecting driver to deliver the car into their possession. On January 17 of last year, the legitimate driver showed up in a Dodge Ram and loaded the Rolls into an enclosed trailer as Zahr watched. “The guy came in and looked very professional, and we took a video of him loading the car, taking pictures of everything,” Zahr told me. He never thought to double-­check where the driver was headed or which company he worked for. Not long after a panicked Zahr spoke with his contact at the transport company he thought he was working with, he reported the car as stolen to the Miami police. Detective Ryan Chin was assigned to the case. It fit with a pattern of high-end auto theft that he and his colleagues had recently been tracking. “Over the past few weeks, detectives have been made aware of a new method on the rise for vehicles being stolen by utilizing Central Dispatch,” Chin wrote in records obtained by MIT Technology Review. “Specific brokers are re-routing the truck drivers upon them picking up vehicles posted for transport and routing them to other locations provided by the broker.”  Chin used Zahr’s photos and video to identify the truck and driver who’d taken the Rolls. By the time police found him, on January 31, the driver had already dropped off Zahr’s Rolls in Hallandale Beach. He’d also picked up and delivered a black Lamborghini Urus and a White Audi R8 for the same client. Each car had been stolen via double-brokering transport fraud, according to court records.  The police department declined to comment or to make Chin available for an interview. But a source with knowledge of the case said the driver was “super cooperative.” (The source asked not to be identified because they were not authorized to speak to the media, and the driver does not appear to have been identified in court records.) The driver told police that he had another load to pick up at a dealership in Naples, Florida, later that same day—a second Lamborghini Urus, this one orange. Police later discovered it was supposed to be shipped to California. But the carrier had been hired to bring the car, which retails for about $250,000, to a mall in nearby Aventura. He told police that he suspected it was going to be delivered to the same person who had booked him for the earlier Rolls, Audi, and Lamborghini deliveries, since “the voice sounds consistent with who [the driver] dealt with prior on the phone.” This drop-off was slated for 4 p.m. at the Waterways Shoppes mall in Aventura. That was when Chin and a fellow detective, Orlando Rodriguez, decided to set up a sting.  The officers and colleagues across three law enforcement agencies quickly positioned themselves in the Waterways parking lot ahead of the scheduled delivery of the Urus. They watched as, pretty much right on schedule that afternoon, the cooperative driver of the Dodge Ram rolled to a stop in the palm-tree-lined lot, which was surrounded by a kosher supermarket, Japanese and Middle Eastern restaurants, and a physiotherapy clinic. The driver went inside the trailer and emerged in the orange Lamborghini. He parked it and waited near the vehicle. Roughly 30 minutes later, a green Rolls-Royce Cullinan (price: $400,000 and up) arrived with two men and a teenager inside. They got out, opened the trunk, and sat on the tailgate of the vehicle as one man counted cash. “They’re doing countersurveillance, looking around,” the source told me later. “It’s a little out of the ordinary, you know. They kept being fixated [on] where the truck was parked.”  The transport driver and the three males who arrived in the Rolls-Royce did not interact. But soon enough, another luxury vehicle, a Bentley Continental GT, which last year retailed for about $250,000 and up, pulled in. The Bentley driver got out, took the cash from one of the men sitting on the back of the Rolls, and walked over to the transport driver. He handed him $700 and took the keys to the Lamborghini. That’s when more than a dozen officers swooped in. “They had nowhere to go,” the source told me. “We surrounded them.” The two men in the Rolls were later identified as Arman Gevorgyan and Hrant Nazarian, and the man in the Bentley as Yuriy Korotovskyy. The three were arrested and charged with dealing in stolen property, grand theft over $100,000, and organized fraud. (The teenager who arrived in the Rolls was Gevorgyan’s son. He was detained and released, according to Richard Cooper, Gevorgyan’s attorney.) As investigators dug into the case, the evidence suggested that this was part of the criminal pattern they’d been following. “I think it’s organized,” the source told me. It’s something that transport industry insiders have talked about for a while, according to Fred Mills, the owner of Florida-based Advantage Auto Transport, a company that specializes in transporting high-end vehicles. He said there’s even a slang term to describe people engaged in transport fraud: the flip-flop mafia.  .cst-large, .cst-default { width: 100%; } @media (max-width: 767px) { .cst-block { overflow-x: hidden; } } @media (min-width: 630px) { .cst-large { margin-left: -25%; width: 150%; } @media (min-width: 960px) { .cst-large { margin-left: -16.666666666666664%; width: 140.26%; } } @media (min-width: 1312px) { .cst-large { width: 145.13%; } } } @media (min-width: 60rem) { .flourish-embed { width: 60vw; transform: translateX(-50%); left: 50%; position: relative; } } It has multiple meanings. One is that the people who show up to transport or accept a vehicle “are out there wearing, you know, flip-flops and slides,” Mills says. The second refers to how fraudsters “flip” from one carrier registration to another as they try to stay ahead of regulators and complaints. In addition to needing a USDOT number, carriers working across states need an interstate operating authority (commonly known as an MC number) from the USDOT. Both IDs are typically printed on the driver and passenger doors. But the rise of ­double-brokering—and of fly-by-night and fraudulent carriers—means that drivers increasingly just tape IDs to their door.  Mills says fraudsters will use a USDOT number for 10 or 11 months, racking up violations, and then tape up a new one. “They just wash, rinse, and repeat,” he says. Decker from the Nevada DMV says a lot of high-end vehicles are stolen because dealerships and individual customers don’t properly check the paperwork or identity of the person who shows up to transport them. “‘Flip-flop mafia’ is an apt nickname because it’s surprisingly easy to get a car on a truck and convince somebody that they’re a legitimate transport operation when they’re not,” he says. Roughly a month after it disappeared, Zahr’s Rolls-Royce was recovered by the Miami Beach Police. Video footage obtained by a local TV station showed the gray car with its distinctive orange top being towed into a police garage.  What happens in Vegas Among the items confiscated from the men in Florida were $10,796 in cash and a GPS jammer. Law enforcement sources say jammers have become a core piece of technology for modern car thieves—necessary to disable the location tracking provided by GPS navigation systems in most cars. “Once they get the vehicles, they usually park them somewhere [and] put a signal jammer in there or cut out the GPS,” the Florida source told me. This buys them time to swap and reprogram the vehicle identification number (VIN), wipe car computers, and reprogram fobs to remove traces of the car’s provenance.  No two VINs are the same, and each is assigned to a specific vehicle by the manufacturer. Where they’re placed inside a vehicle varies by make and model. The NICB’s Woolf says cars also have confidential VINs located in places—including their electronic components—that are supposed to be known only to law enforcement and his organization. But criminals have figured out how to find and change them. “It’s making it more and more difficult for us to identify vehicles as stolen,” Woolf says. “Every time we come up with a security measure to prevent the fraudster, they come up with a countermeasure.” All this doesn’t even take very much time. “If you know what you’re doing, and you steal the car at one o’clock today, you can have it completely done at two o’clock today,” says Woolf. A vehicle can be rerouted, reprogrammed, re-VINed, and sometimes even retitled before an owner files a police report. That appears to have been the plan in the case of the stolen light-gray 2023 Lamborghini Huracán owned by the Rockies’ Kris Bryant. On September 29, 2024, a carrier hired via a load board arrived at Bryant’s home in Cherry Hills, Colorado, to pick up the car. It was supposed to be transported to Bryant’s Las Vegas residence within a few days. It never showed up there—but it was in fact in Vegas. Using Flock traffic cameras, which capture license plate information in areas across the country, Detective Justin Smith of the Cherry Hills Village Police Department tracked the truck and trailer that had picked up the Lambo to Nevada, and he alerted local police. On October 7, a Las Vegas officer spotted a car matching the Lamborghini’s description and pulled it over. The driver said the Huracán had been brought to his auto shop by a man whom the police were able to identify as Dat Viet Tieu. They arrested Tieu later that same day. In an interview with police, he identified himself as a car broker. He said he was going to resell the Lamborghini and that he had no idea that the car was stolen, according to the arrest report.  Police searched a Jeep Wrangler that Tieu had parked nearby and discovered it had been stolen—and had been re-VINed, retitled, and registered to his wife. Inside the car, police discovered “multiple fraudulent VIN stickers, key fobs to other high-end stolen vehicles, and fictitious placards,” their report said.  One of the fake VINs matched the make and model of Bryant’s Lamborghini. (Representatives for Bryant and the Rockies did not respond to a request for comment.)  Tieu was released on bail. But after he returned to LVPD headquarters two days later, on October 9, to reclaim his personal property, officers secretly placed him under surveillance with the hope that he’d lead them to one of the other stolen cars matching the key fobs they’d found in the Jeep.  It didn’t take long for them to get lucky. A few hours after leaving the police station, Tieu drove to Harry Reid International Airport, where he picked up an unidentified man. They drove to the Caesars Palace parking garage and pulled in near a GMC Sierra. Over the next three hours, the man worked on a laptop inside and outside the vehicle, according to a police report. At one point, he and Tieu connected jumper cables from Tieu’s rented Toyota Camry to the Sierra. “At 2323 hours, the white male adult enters the GMC Sierra, and the vehicle’s ignition starts. It was readily apparent the [two men] had successfully re-programmed a key fob to the GMC Sierra,” the report said. An officer watched as the man gave two key fobs to Tieu, who handed the man an unknown amount of cash. Still, the police let the men leave the garage.  The police kept Tieu and his wife under surveillance for more than a week. Then, on October 18, fearing the couple was about to leave town, officers entered Nora’s Italian Restaurant just off the Vegas Strip and took them into custody. “Obviously, we meet again,” a detective told Tieu. “I’m not surprised,” Tieu replied.  Police later searched the VIN on the Sierra from the Caesars lot and found that it had been reported stolen in Tremonton, Utah, roughly two weeks earlier. They eventually returned both the Sierra and Kris Bryant’s Lamborghini to their owners.  Tieu pleaded guilty to two felony counts of possession of a stolen vehicle and one count of defacing, altering, substituting, or removing a VIN. In October, he was sentenced to up to one year of probation; if it’s completed successfully, the plea agreement says, the counts of possession of a stolen vehicle will be dismissed. His attorneys, David Z. Chesnoff and Richard A. Schonfeld, said in a statement that they were “pleased” with the court’s decision, “in light of [Tieu’s] acceptance of responsibility.”  Taking the heat Many vehicles stolen via transport fraud are never recovered. Experts say the best way to stop this criminal cycle would be to disrupt it before it starts.  That would require significant changes to the way that load boards operate. Bryant’s Lamborghini, Zahr’s and Payne’s Rolls-Royces, and the orange Lamborghini Urus in Florida were all posted for transport on Central Dispatch. Both brokers and shippers argue that the company hasn’t taken enough responsibility for what they characterize as weak oversight. “If the crap hits the fan, it’s on us as a broker, or it’s on the trucking company … they have no liability in the whole transaction process. So it definitely frosted a lot of people’s feathers.” Fred Mills, owner of Florida-based Advantage Auto Transport “You’re Cox Automotive—you’re the biggest car company in the world for dealers—and you’re not doing better screenings when you sign people up?” says Payne. (The spokesperson for Cox Automotive said that it has “a robust verification process for all clients … who sign up.”) “If the crap hits the fan, it’s on us as a broker, or it’s on the trucking company, or the clients’ insurance, [which means] that they have no liability in the whole transaction process,” says Mills. “So it definitely frosted a lot of people’s feathers.” Over the last year, Central Dispatch has made changes to further secure its platform. It introduced two-factor authentication for user accounts and started enabling shippers to use its app to track loads in real time, among other measures. It also kicked off an awareness campaign that includes online educational content and media appearances to communicate that the company takes its responsibilities seriously. “We’ve removed over 500 accounts already in 2025, and we’ll continue to take any of that aggressive action where it’s needed,” said Lainey Sibble, Central Dispatch’s head of business, in a sponsored episode of the Auto Remarketing Podcast. “We also recognize this is not going to happen in a silo. Everyone has a role to play here, and it’s really going to take us all working together in partnership to combat this issue.” Mills says Central Dispatch got faster at shutting down fraudulent accounts toward the end of last year. But it’s going to take time to fix the industry, he adds: “I compare it to a 15-year opioid addiction. It’s going to take a while to detox the system.”  Yariv, the broker in West Palm Beach, says he has stopped using Central Dispatch and other load boards altogether. “One person has access here, and that’s me. I don’t even log in,” he told me. His team has gone back to working the phones, as evidenced by the din of voices in the background as we spoke.  RICHARD CHANCE “[The fraud is] everywhere. It’s constant,” he said. “The only way it goes away is the dispatch boards have to be shut down—and that’ll never happen.” It also remains to be seen what kind of accountability there will be for the alleged thieves in Florida. Korotovskyy and Nazarian pleaded not guilty; as of press time, their trials were scheduled to begin in May. (Korotovskyy’s lawyer, Bruce Prober, said in a statement that the case “is an ongoing matter” and his client is “presumed innocent,” while Nazarian’s attorney, Yale Sanford, said in a statement, “As the investigation continues, Mr. Nazarian firmly asserts his innocence.” A spokesperson with Florida’s Office of the State Attorney emailed a statement: “The circumstances related to these arrests are still a matter of investigation and prosecution. It would be inappropriate to be commenting further.”) In contrast, Gevorgyan, the third man arrested in the Florida sting, pleaded guilty to four charges.  Yet he maintains his innocence, according to Cooper, his lawyer: “He was pleading [guilty] to get out and go home.” Cooper describes his client as a wealthy Armenian national who runs a jewelry business back home, adding that he was deported to Armenia in September.  Cooper says his client’s “sweetheart” plea deal doesn’t require him to testify or otherwise supply information against his alleged co-conspirators—or to reveal details about how all these luxury cars were mysteriously disappearing across South Florida. Cooper also says prosecutors may have a difficult time convicting the other two men, arguing that police acted prematurely by arresting the trio without first seeing what, if anything, they intended to do with the Lamborghini. “All they ever had,” Cooper says, “was three schmucks sitting outside of the Lamborghini.”  Craig Silverman is an award-winning journalist and the cofounder of Indicator, a publication that reports on digital deception.

When Sam Zahr first saw the gray Rolls-Royce Dawn convertible with orange interior and orange roof, he knew he’d found a perfect addition to his fleet. “It was very appealing to our clientele,” he told me. As the director of operations at Dream Luxury Rental, he outfits customers in the Detroit area looking to ride in style to a wedding, a graduation, or any other event with high-end vehicles—Rolls-Royces, Lamborghinis, Bentleys, Mercedes G-Wagons, and more.

But before he could rent out the Rolls, Zahr needed to get the car to Detroit from Miami, where he bought it from a used-car dealer. 

His team posted the convertible on Central Dispatch, an online marketplace that’s popular among car dealers, manufacturers, and owners who want to arrange vehicle shipments. It’s not too complicated, at least in theory: A typical listing includes the type of vehicle, zip codes of the origin and destination, dates for pickup and delivery, and the fee. Anyone with a Central Dispatch account can see the job, and an individual carrier or transport broker who wants it can call the number on the listing.

Zahr’s team got a call from a transport company that wanted the job. They agreed on the price and scheduled pickup for January 17, 2025. Zahr watched from a few feet away as the car was loaded into an enclosed trailer. He expected the vehicle to arrive in Detroit just a few days later—by January 21. 

But it never showed up.

Zahr called a contact at the transport company to ask what happened. 

“He’s like, I don’t know what you’re talking about.” 

Zahr told me his contact angrily told him they mostly ship Coca-Cola products, not luxury cars. “He was yelling and screaming about it,” Zahr said.

Over the years, people have broken into his business to steal cars, or they’ve rented them out and never come back. But until this day, he’d never had a car simply disappear during shipping. He’d expected no trouble this time around, especially since he’d used Central Dispatch—“a legit platform that everyone uses to transport cars,” he said. 

“That’s the scary part about it, you know?”

Wreaking havoc

Zahr had unwittingly been caught up in a new and growing type of organized criminal enterprise: vehicle transport fraud and theft. Crooks use email phishing, fraudulent paperwork, and other tactics to impersonate legitimate transport companies and get hired to deliver a luxury vehicle. They divert the shipment away from its intended destination and then use a mix of technology, computer skills, and old-school chop shop techniques to erase traces of the vehicle’s original ownership and registration.

These vehicles can be retitled and resold in the US or loaded into a shipping container and sent to an overseas buyer. In some cases, the car has been resold or is out of the country by the time the rightful owner even realizes it’s missing.

“Criminals have learned that stealing cars via the web portals has become extremely easy, and when I say easy—it’s become seamless,” says Steven Yariv, the CEO of Dealers Choice Auto Transport of West Palm Beach, Florida, one of the country’s largest luxury-vehicle transport brokers.

Individual cases have received media coverage thanks to the high value of the stolen cars and the fact that some belong to professional athletes and other celebrities. In late 2024, a Lamborghini Huracán belonging to Colorado Rockies third baseman Kris Bryant went missing en route to his home in Las Vegas; R&B singer Ray J told TMZ the same year that two Mercedes Maybachs never arrived in New York as planned; and last fall, NBA Hall of Famer Shaquille O’Neal had a $180,000 custom Range Rover stolen when the transport company hired to move the vehicle was hacked. “They’re saying they think it’s probably in Dubai by now, to be honest,” an employee of the company that customized the SUV told Shaq in a YouTube video.

“Criminals have learned that stealing cars via the web portals has become extremely easy, and when I say easy—it’s become seamless.”

Steven Yariv, CEO, Dealers Choice Auto Transport of West Palm Beach, Florida

But the nationwide epidemic of vehicle transport fraud and theft has remained under the radar, even as it’s rocked the industry over the past two years. MIT Technology Review identified more than a dozen cases involving high-end vehicles, obtained court records, and spoke to law enforcement, brokers, drivers, and victims in multiple states to reveal how transport fraud is wreaking havoc across the country.

RICHARD CHANCE

It’s challenging to quantify the scale of this type of crime, since there isn’t a single entity or association that tracks it. Still, these law enforcement officials and brokers, as well as the country’s biggest online car-transport marketplaces, acknowledge that fraud and theft are on the rise. 

When I spoke with him in August, Yariv estimated that around 8,000 exotic and high-end cars had been stolen since the spring of 2024, resulting in over $1 billion in losses. “You’re talking 30 cars a day [on] average is gone,” he said.

Multiple state and local law enforcement officials told MIT Technology Review that the number is plausible. (The FBI did not respond to a request for an interview.)

“It doesn’t surprise me,” said J.D. Decker, chief of the Nevada Department of Motor Vehicles’ police division and chair of the fraud subcommittee for the American Association of Motor Vehicle Administrators. “It’s a huge business.”

Data from the National Insurance Crime Bureau (NICB), a nonprofit that works with law enforcement and the insurance industry to investigate insurance fraud and related crimes, provides further evidence of this crime wave. NICB tracks both car theft and cargo theft, a broad category that refers to goods, money, or baggage that is stolen while part of a commercial shipment; the category also covers cases in which a vehicle is stolen via a diverted transport truck or a purloined car is loaded into a shipping container. NICB’s statistics about car theft show that it has declined following an increase during the pandemic—but over the same period cargo theft has dramatically increased, to an estimated $35 billion annually. The group projected in June that it was expected to rise 22% in 2025.

NICB doesn’t break out data for vehicles as opposed to other types of stolen cargo. But Bill Woolf, a regional director for the organization, said an antifraud initiative at the Port of Baltimore experienced a 200% increase from 2023 to 2024 in the number of stolen vehicles recovered. He said the jump could be due to the increased effort to identify stolen cars moving through the port, but he noted that earlier the day we spoke, agents had recovered two high-end stolen vehicles bound for overseas.

“One day, one container—a million dollars,” he said.

Many other vehicles are never recovered—perhaps a result of the speed with which they’re shipped off or sold. Travis Payne, an exotic-car dealer in Atlanta, told me that transport thieves often have buyers lined up before they take a car: “When they steal them, they have a plan.” 

In 2024, Payne spent months trying to locate a Rolls-Royce he’d purchased after it was stolen via transport fraud. It eventually turned up in the Instagram feed of a Mexican pop star, he says. He never got the car back.

The criminals are “gonna keep doing it,” he says, “because they make a couple phone calls, make a couple email accounts, and they get a $400,000 car for free. I mean, it makes them God, you know?”

Out-innovating the industry

The explosion of vehicle transport fraud follows a pattern that has played out across the economy over the past roughly two decades: A business that once ran on phones, faxes, and personal relationships shifted to online marketplaces that increased efficiency and brought down costs—but the reduction in human-to-human interaction introduced security vulnerabilities that allowed organized and often international fraudsters to enter the industry.

In the case of vehicle transport, the marketplaces are online “load boards” where car owners, dealerships, and manufacturers post about vehicles that need to be shipped from one location to another. Central Dispatch claims to be the largest vehicle load board and says on its website that thousands of vehicles are posted on its platform each day. It’s part of Cox Automotive, an industry juggernaut that owns major vehicle auctions, Autotrader, Kelley Blue Book, and other businesses that work with auto dealers, lenders, and buyers.

The system worked pretty well until roughly two years ago, when organized fraud rings began compromising broker and carrier accounts and exploiting loopholes in government licensing to steal loads with surprising ease and alarming frequency.

A theft can start with a phishing email that appears to come from a legitimate load board. The recipient, a broker or carrier, clicks a link in the message, which appears to go to the real site—but logging in sends the victim’s username and password to a criminal. The crook logs in as the victim, changes the account’s email and phone number to reroute all communications, and begins claiming loads of high-end vehicles. Cox Automotive declined an interview request but said in a statement that the “load board system still works well” and that “fraud impacts a very small portion” of listings.

“Every time we come up with a security measure to prevent the fraudster, they come up with a countermeasure.”

Bill Woolf, a regional director, National Insurance Crime Bureau

Criminals also gain access to online marketplaces by exploiting a lax regulatory environment. While a valid US Department of Transportation registration is required to access online marketplaces, it’s not hard for bad actors to register sham transport companies and obtain a USDOT number from the Federal Motor Carrier Safety Administration, the agency that regulates commercial motor vehicles. In other cases, criminals compromise the FMCSA accounts of legitimate companies and change their phone numbers and email addresses in order to impersonate them and steal loads. (USDOT did not respond to a request for comment.)

As Bek Abdullayev, the founder of Super Dispatch, one of Central Dispatch’s biggest competitors, explained in an episode of the podcast Auto Transport Co-Pilot, “FMCSA [is] authorizing people that are fraudulent companies—people that are not who they say they are.” He added that people can “game the system and … obtain paperwork that makes [them] look like a legitimate company.” For example, vehicle carrier insurance can be obtained quickly—if temporarily—by submitting an online application with fraudulent payment credentials.

The bottom line is that crooks have found myriad ways to present themselves as genuine and permitted vehicle transport brokers and carriers. Once hired to move a vehicle, they often repost the car on a load board using a different fraudulent or compromised account. While this kind of subcontracting, known as “double-­brokering,” is sometimes used by companies to save money, it can also be used by criminals to hire an unwitting accomplice to deliver the stolen car to their desired location. “They’re booking cars and then they’re just reposting them and dispatching them out to different routes,” says Yariv, the West Palm Beach transport broker. 

“A lot of this is cartel operated,” says Decker, of the Nevada DMV, who also serves on a vehicle fraud committee for the International Association of Chiefs of Police. “There’s so much money in it that it rivals selling drugs.”

Even though this problem is becoming increasingly well known, fraudsters continue to steal, largely with impunity. Brokers, auto industry insiders, and law enforcement told MIT Technology Review that load boards and the USDOT have been too slow to catch and ban bad actors. (In its statement, Cox Automotive said it has been “dedicated to continually enhancing our processes, technology, and education efforts across the industry to fight fraud.”)

Jake MacDonald, who leads Super Dispatch’s fraud monitoring and investigation efforts, put it bluntly on the podcast with Abdullayev: the reason that fraud is “jumping so much” is that “the industry is slowly moving over to a more technologically advanced position, but it’s so slow that fraud is actually [out-]innovating the industry.”

A Florida sting

As it turns out, the person Zahr’s team hired on Central Dispatch didn’t really work for the transport company. 

After securing the job, the fraudster reposted the orange-and-gray Rolls convertible to a load board. And instead of saying that the car needed to go from Miami to the real destination of Detroit, the new job listed an end point of Hallandale Beach, Florida, just 20 or so miles away. It was a classic case of malicious double-­brokering: the crooks claimed a load and then reposted it in order to find a new, unsuspecting driver to deliver the car into their possession.

On January 17 of last year, the legitimate driver showed up in a Dodge Ram and loaded the Rolls into an enclosed trailer as Zahr watched.

“The guy came in and looked very professional, and we took a video of him loading the car, taking pictures of everything,” Zahr told me. He never thought to double-­check where the driver was headed or which company he worked for.

Not long after a panicked Zahr spoke with his contact at the transport company he thought he was working with, he reported the car as stolen to the Miami police. Detective Ryan Chin was assigned to the case. It fit with a pattern of high-end auto theft that he and his colleagues had recently been tracking.

“Over the past few weeks, detectives have been made aware of a new method on the rise for vehicles being stolen by utilizing Central Dispatch,” Chin wrote in records obtained by MIT Technology Review. “Specific brokers are re-routing the truck drivers upon them picking up vehicles posted for transport and routing them to other locations provided by the broker.” 

Chin used Zahr’s photos and video to identify the truck and driver who’d taken the Rolls. By the time police found him, on January 31, the driver had already dropped off Zahr’s Rolls in Hallandale Beach. He’d also picked up and delivered a black Lamborghini Urus and a White Audi R8 for the same client. Each car had been stolen via double-brokering transport fraud, according to court records. 

The police department declined to comment or to make Chin available for an interview. But a source with knowledge of the case said the driver was “super cooperative.” (The source asked not to be identified because they were not authorized to speak to the media, and the driver does not appear to have been identified in court records.)

The driver told police that he had another load to pick up at a dealership in Naples, Florida, later that same day—a second Lamborghini Urus, this one orange. Police later discovered it was supposed to be shipped to California. But the carrier had been hired to bring the car, which retails for about $250,000, to a mall in nearby Aventura. He told police that he suspected it was going to be delivered to the same person who had booked him for the earlier Rolls, Audi, and Lamborghini deliveries, since “the voice sounds consistent with who [the driver] dealt with prior on the phone.” This drop-off was slated for 4 p.m. at the Waterways Shoppes mall in Aventura.

That was when Chin and a fellow detective, Orlando Rodriguez, decided to set up a sting. 

The officers and colleagues across three law enforcement agencies quickly positioned themselves in the Waterways parking lot ahead of the scheduled delivery of the Urus. They watched as, pretty much right on schedule that afternoon, the cooperative driver of the Dodge Ram rolled to a stop in the palm-tree-lined lot, which was surrounded by a kosher supermarket, Japanese and Middle Eastern restaurants, and a physiotherapy clinic.

The driver went inside the trailer and emerged in the orange Lamborghini. He parked it and waited near the vehicle.

Roughly 30 minutes later, a green Rolls-Royce Cullinan (price: $400,000 and up) arrived with two men and a teenager inside. They got out, opened the trunk, and sat on the tailgate of the vehicle as one man counted cash.

“They’re doing countersurveillance, looking around,” the source told me later. “It’s a little out of the ordinary, you know. They kept being fixated [on] where the truck was parked.” 

The transport driver and the three males who arrived in the Rolls-Royce did not interact. But soon enough, another luxury vehicle, a Bentley Continental GT, which last year retailed for about $250,000 and up, pulled in. The Bentley driver got out, took the cash from one of the men sitting on the back of the Rolls, and walked over to the transport driver. He handed him $700 and took the keys to the Lamborghini.

That’s when more than a dozen officers swooped in.

“They had nowhere to go,” the source told me. “We surrounded them.”

The two men in the Rolls were later identified as Arman Gevorgyan and Hrant Nazarian, and the man in the Bentley as Yuriy Korotovskyy. The three were arrested and charged with dealing in stolen property, grand theft over $100,000, and organized fraud. (The teenager who arrived in the Rolls was Gevorgyan’s son. He was detained and released, according to Richard Cooper, Gevorgyan’s attorney.)

As investigators dug into the case, the evidence suggested that this was part of the criminal pattern they’d been following. “I think it’s organized,” the source told me.

It’s something that transport industry insiders have talked about for a while, according to Fred Mills, the owner of Florida-based Advantage Auto Transport, a company that specializes in transporting high-end vehicles. He said there’s even a slang term to describe people engaged in transport fraud: the flip-flop mafia. 

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It has multiple meanings. One is that the people who show up to transport or accept a vehicle “are out there wearing, you know, flip-flops and slides,” Mills says.

The second refers to how fraudsters “flip” from one carrier registration to another as they try to stay ahead of regulators and complaints.

In addition to needing a USDOT number, carriers working across states need an interstate operating authority (commonly known as an MC number) from the USDOT. Both IDs are typically printed on the driver and passenger doors. But the rise of ­double-brokering—and of fly-by-night and fraudulent carriers—means that drivers increasingly just tape IDs to their door. 

Mills says fraudsters will use a USDOT number for 10 or 11 months, racking up violations, and then tape up a new one. “They just wash, rinse, and repeat,” he says.

Decker from the Nevada DMV says a lot of high-end vehicles are stolen because dealerships and individual customers don’t properly check the paperwork or identity of the person who shows up to transport them.

“‘Flip-flop mafia’ is an apt nickname because it’s surprisingly easy to get a car on a truck and convince somebody that they’re a legitimate transport operation when they’re not,” he says.

Roughly a month after it disappeared, Zahr’s Rolls-Royce was recovered by the Miami Beach Police. Video footage obtained by a local TV station showed the gray car with its distinctive orange top being towed into a police garage. 

What happens in Vegas

Among the items confiscated from the men in Florida were $10,796 in cash and a GPS jammer. Law enforcement sources say jammers have become a core piece of technology for modern car thieves—necessary to disable the location tracking provided by GPS navigation systems in most cars. “Once they get the vehicles, they usually park them somewhere [and] put a signal jammer in there or cut out the GPS,” the Florida source told me. This buys them time to swap and reprogram the vehicle identification number (VIN), wipe car computers, and reprogram fobs to remove traces of the car’s provenance. 

No two VINs are the same, and each is assigned to a specific vehicle by the manufacturer. Where they’re placed inside a vehicle varies by make and model. The NICB’s Woolf says cars also have confidential VINs located in places—including their electronic components—that are supposed to be known only to law enforcement and his organization. But criminals have figured out how to find and change them.

“It’s making it more and more difficult for us to identify vehicles as stolen,” Woolf says. “Every time we come up with a security measure to prevent the fraudster, they come up with a countermeasure.”

All this doesn’t even take very much time. “If you know what you’re doing, and you steal the car at one o’clock today, you can have it completely done at two o’clock today,” says Woolf. A vehicle can be rerouted, reprogrammed, re-VINed, and sometimes even retitled before an owner files a police report.

That appears to have been the plan in the case of the stolen light-gray 2023 Lamborghini Huracán owned by the Rockies’ Kris Bryant.

On September 29, 2024, a carrier hired via a load board arrived at Bryant’s home in Cherry Hills, Colorado, to pick up the car. It was supposed to be transported to Bryant’s Las Vegas residence within a few days. It never showed up there—but it was in fact in Vegas.

Using Flock traffic cameras, which capture license plate information in areas across the country, Detective Justin Smith of the Cherry Hills Village Police Department tracked the truck and trailer that had picked up the Lambo to Nevada, and he alerted local police.

On October 7, a Las Vegas officer spotted a car matching the Lamborghini’s description and pulled it over. The driver said the Huracán had been brought to his auto shop by a man whom the police were able to identify as Dat Viet Tieu. They arrested Tieu later that same day. In an interview with police, he identified himself as a car broker. He said he was going to resell the Lamborghini and that he had no idea that the car was stolen, according to the arrest report. 

Police searched a Jeep Wrangler that Tieu had parked nearby and discovered it had been stolen—and had been re-VINed, retitled, and registered to his wife. Inside the car, police discovered “multiple fraudulent VIN stickers, key fobs to other high-end stolen vehicles, and fictitious placards,” their report said. 

One of the fake VINs matched the make and model of Bryant’s Lamborghini. (Representatives for Bryant and the Rockies did not respond to a request for comment.) 

Tieu was released on bail. But after he returned to LVPD headquarters two days later, on October 9, to reclaim his personal property, officers secretly placed him under surveillance with the hope that he’d lead them to one of the other stolen cars matching the key fobs they’d found in the Jeep. 

It didn’t take long for them to get lucky. A few hours after leaving the police station, Tieu drove to Harry Reid International Airport, where he picked up an unidentified man. They drove to the Caesars Palace parking garage and pulled in near a GMC Sierra. Over the next three hours, the man worked on a laptop inside and outside the vehicle, according to a police report. At one point, he and Tieu connected jumper cables from Tieu’s rented Toyota Camry to the Sierra.

“At 2323 hours, the white male adult enters the GMC Sierra, and the vehicle’s ignition starts. It was readily apparent the [two men] had successfully re-programmed a key fob to the GMC Sierra,” the report said.

An officer watched as the man gave two key fobs to Tieu, who handed the man an unknown amount of cash. Still, the police let the men leave the garage. 

The police kept Tieu and his wife under surveillance for more than a week. Then, on October 18, fearing the couple was about to leave town, officers entered Nora’s Italian Restaurant just off the Vegas Strip and took them into custody.

“Obviously, we meet again,” a detective told Tieu.

“I’m not surprised,” Tieu replied. 

Police later searched the VIN on the Sierra from the Caesars lot and found that it had been reported stolen in Tremonton, Utah, roughly two weeks earlier. They eventually returned both the Sierra and Kris Bryant’s Lamborghini to their owners. 

Tieu pleaded guilty to two felony counts of possession of a stolen vehicle and one count of defacing, altering, substituting, or removing a VIN. In October, he was sentenced to up to one year of probation; if it’s completed successfully, the plea agreement says, the counts of possession of a stolen vehicle will be dismissed. His attorneys, David Z. Chesnoff and Richard A. Schonfeld, said in a statement that they were “pleased” with the court’s decision, “in light of [Tieu’s] acceptance of responsibility.” 

Taking the heat

Many vehicles stolen via transport fraud are never recovered. Experts say the best way to stop this criminal cycle would be to disrupt it before it starts. 

That would require significant changes to the way that load boards operate. Bryant’s Lamborghini, Zahr’s and Payne’s Rolls-Royces, and the orange Lamborghini Urus in Florida were all posted for transport on Central Dispatch. Both brokers and shippers argue that the company hasn’t taken enough responsibility for what they characterize as weak oversight.

“If the crap hits the fan, it’s on us as a broker, or it’s on the trucking company … they have no liability in the whole transaction process. So it definitely frosted a lot of people’s feathers.”

Fred Mills, owner of Florida-based Advantage Auto Transport

“You’re Cox Automotive—you’re the biggest car company in the world for dealers—and you’re not doing better screenings when you sign people up?” says Payne. (The spokesperson for Cox Automotive said that it has “a robust verification process for all clients … who sign up.”)

“If the crap hits the fan, it’s on us as a broker, or it’s on the trucking company, or the clients’ insurance, [which means] that they have no liability in the whole transaction process,” says Mills. “So it definitely frosted a lot of people’s feathers.”

Over the last year, Central Dispatch has made changes to further secure its platform. It introduced two-factor authentication for user accounts and started enabling shippers to use its app to track loads in real time, among other measures. It also kicked off an awareness campaign that includes online educational content and media appearances to communicate that the company takes its responsibilities seriously.

“We’ve removed over 500 accounts already in 2025, and we’ll continue to take any of that aggressive action where it’s needed,” said Lainey Sibble, Central Dispatch’s head of business, in a sponsored episode of the Auto Remarketing Podcast. “We also recognize this is not going to happen in a silo. Everyone has a role to play here, and it’s really going to take us all working together in partnership to combat this issue.”

Mills says Central Dispatch got faster at shutting down fraudulent accounts toward the end of last year. But it’s going to take time to fix the industry, he adds: “I compare it to a 15-year opioid addiction. It’s going to take a while to detox the system.” 

Yariv, the broker in West Palm Beach, says he has stopped using Central Dispatch and other load boards altogether. “One person has access here, and that’s me. I don’t even log in,” he told me. His team has gone back to working the phones, as evidenced by the din of voices in the background as we spoke. 

RICHARD CHANCE

“[The fraud is] everywhere. It’s constant,” he said. “The only way it goes away is the dispatch boards have to be shut down—and that’ll never happen.”

It also remains to be seen what kind of accountability there will be for the alleged thieves in Florida. Korotovskyy and Nazarian pleaded not guilty; as of press time, their trials were scheduled to begin in May. (Korotovskyy’s lawyer, Bruce Prober, said in a statement that the case “is an ongoing matter” and his client is “presumed innocent,” while Nazarian’s attorney, Yale Sanford, said in a statement, “As the investigation continues, Mr. Nazarian firmly asserts his innocence.” A spokesperson with Florida’s Office of the State Attorney emailed a statement: “The circumstances related to these arrests are still a matter of investigation and prosecution. It would be inappropriate to be commenting further.”)

In contrast, Gevorgyan, the third man arrested in the Florida sting, pleaded guilty to four charges. 

Yet he maintains his innocence, according to Cooper, his lawyer: “He was pleading [guilty] to get out and go home.” Cooper describes his client as a wealthy Armenian national who runs a jewelry business back home, adding that he was deported to Armenia in September. 

Cooper says his client’s “sweetheart” plea deal doesn’t require him to testify or otherwise supply information against his alleged co-conspirators—or to reveal details about how all these luxury cars were mysteriously disappearing across South Florida. Cooper also says prosecutors may have a difficult time convicting the other two men, arguing that police acted prematurely by arresting the trio without first seeing what, if anything, they intended to do with the Lamborghini.

“All they ever had,” Cooper says, “was three schmucks sitting outside of the Lamborghini.” 


Craig Silverman is an award-winning journalist and the cofounder of Indicator, a publication that reports on digital deception.

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Infographic: Strait of Hormuz energy trade 2025

@import url(‘https://fonts.googleapis.com/css2?family=Inter:[email protected]&display=swap’); a { color: var(–color-primary-main); } .ebm-page__main h1, .ebm-page__main h2, .ebm-page__main h3, .ebm-page__main h4, .ebm-page__main h5, .ebm-page__main h6 { font-family: Inter; } body { line-height: 150%; letter-spacing: 0.025em; font-family: Inter; } button, .ebm-button-wrapper { font-family: Inter; } .label-style { text-transform: uppercase; color: var(–color-grey); font-weight: 600; font-size: 0.75rem; } .caption-style { font-size: 0.75rem; opacity: .6; } #onetrust-pc-sdk [id*=btn-handler], #onetrust-pc-sdk [class*=btn-handler] { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-policy a, #onetrust-pc-sdk a, #ot-pc-content a { color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-pc-sdk .ot-active-menu { border-color: #c19a06 !important; } #onetrust-consent-sdk #onetrust-accept-btn-handler, #onetrust-banner-sdk #onetrust-reject-all-handler, #onetrust-consent-sdk #onetrust-pc-btn-handler.cookie-setting-link { background-color: #c19a06 !important; border-color: #c19a06 !important; } #onetrust-consent-sdk .onetrust-pc-btn-handler { color: #c19a06 !important; border-color: #c19a06 !important; } Coordinated attacks Feb. 28 by the US and Israel on Iran and the since-escalated conflict have nearly halted shipping traffic through the Strait of Hormuz, which typically carries about 20% of the world’s crude oil and natural gas. OGJ Statistics Editor Laura Bell-Hammer compiled data to showcase 2025 energy trade through the critical transit chokepoint.   <!–> –> <!–> ]–> <!–> ]–>

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BOEM: US OCS holds 65.8 billion bbl of technically recoverable reserves

The US Outer Continental Shelf (OCS) holds mean undiscovered technically recoverable resources (UTRR) of 65.8 billion bbl of oil and 218.43 tcf of natural gas, the US Bureau of Ocean Energy Management (BOEM) said Mar. 9. Based on current production trends, these undiscovered resources represent the potential for 100 or more years of energy production from the US Outer Continental Shelf (OCS), BOEM said. A large portion of undiscovered OSC resources is located offshore the Gulf of Mexico and Alaska, according to the report. The offshore Gulf holds 26.9 million bbl of oil and 45.59 tcf of gas, while offshore Alaska holds an estimated mean 24.1 million bbl of oil and 122.29 tcf of gas. Offshore Pacific holds a mean UTRR of 10.3 million barrels of oil and 16.2 trillion cubic feet of gas, the report said. Offshore Atlantic holds a mean UTRR of 10.3 billion barrels of oil and 16.2 trillion cubic feet of gas. The assessment also evaluates the impact of prices on hydrocarbon recovery. Alaska is particularly price-sensitive, with mean undiscovered economically recoverable resources (UERR) negligible until prices average $100/bbl and $17.79/Mcf. At those levels, the mean UERR stands at 6.25 billion bbl and 13.25 tcf. At $160/bbl and $28.47/Mcf, recoverable resources jump to 14.67 billion bbl and 58.78 tcf. In the Gulf of Mexico, the mean UERR is 17.51 billion bbl of oil and 13.71 tcf at average prices of $60/bbl and $3.20/Mcf, increasing to 20.51 billion bbl and 17.49 tcf at average prices of $100/bbl and $5.34/Mcf, respectively. BOEM conducts a national resource assessment every 4 years to understand the “distribution of undiscovered oil and gas resources on the OCS” and identify opportunities for additional oil and gas exploration and development. “The Outer Continental Shelf holds tremendous resource potential,” said BOEM Acting Director Matt Giacona. “This

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Data mining? Old servers could become new source of rare earths

For decades, he said, “the retirement of data center equipment was treated almost entirely as a compliance and disposal issue. Enterprises focused on secure decommissioning, certified recycling, and documented destruction of sensitive hardware. Once equipment left production environments, its economic life was assumed to be largely finished.” That assumption, he pointed out, “is beginning to change, because the hardware inside modern data centres contains a wide range of strategically important materials. Servers, storage systems, networking equipment, and power components contain copper, aluminum, silver, gold, and increasingly small but significant quantities of rare earth elements and other critical minerals.” These materials play a vital role in the manufacturing of semiconductors, energy systems, defense electronics, and advanced computing infrastructure, he explained, noting, “as global demand for digital infrastructure continues to expand, the volume of retired hardware entering disposal channels is rising quickly.” Electronic waste has already become one of the fastest growing waste streams in the world. “Global volumes now exceed 60 million tonnes annually and are projected to move toward eighty million tonnes by the end of the decade if current trends continue,” he said. “Data center infrastructure represents only a portion of that total, but it is a particularly important portion because it is concentrated, professionally managed, and replaced in structured cycles.” For a metals producer, he said, data center infrastructure represents a highly attractive feedstock, because unlike consumer electronics, enterprise hardware is replaced in large batches and flows through professional asset management channels. That predictability, said Gogia, “allows recyclers to design specialized processes that target specific components and materials. Over time, this creates the foundation for an industrial scale circular supply chain in which retired electronics feed back into the production of new materials.”

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Meta is developing more AI chips for itself

With demand for AI chips rising and supplies tightening, Meta is taking its AI computing needs into its own hands and developing more of its own chips: It will produce four new generations of chips over the next two years. Cloud computing giants including Meta, AWS, and Google have been keen to develop their own chips to improve the performance of their own data centers. Meta started its own chip program in 2023, when it implemented the Meta Training and Inference Accelerator (MTIA), a family of custom-built silicon chips to power its AI workloads efficiently. The MTIA 300, which Meta will use for ranking and recommendations training, is already  in production, Meta said. It will use the other planned chips, the MTIA 400, 450, and 500, mainly for generative AI inference production, it said.

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Arista targets AI data centers with new liquid cooled pluggable optic module

To prove their point, the authors imagined a 400 MW AI datacenter with 1024 GPU racks of 128 GPUs each for a total of 128,000 GPUs. “Assume 12.8T scale-up and 1.6T scale-out bandwidth per GPU. With OSFP switch racks that have a density of 1.6 Pbps per rack, this would require more than 1,400 switch racks for scale-up and scale-out fabrics. With XPO, this would require 75% fewer racks, saving over 1,050 racks or 44 % of the floor space,” Bechtolsheim and Vusirikala stated in the blog.  “Eliminating 75% of switch racks translates to massive reductions in construction and infrastructure costs, including power distribution, plumbing and installation costs, while accelerating deployment timelines,” Bechtolsheim and Vusirikala stated. Arista said the water-cooling capability of XPO is also an important feature. “All large AI data centers will be liquid cooled and the switches that go into these data centers also need to be liquid cooled,” Bechtolsheim and Vusirikala stated.  “While one can add liquid cooled cold plates on flat-top OSFP modules, this does not substantially improve thermal performance.” XPO solves this problem by integrating a liquid cold plate inside the module, with two 32-channel paddle cards sharing the common cold plate which can cool both low power as well as high-power optics such as 8x1600G-ZR/ZR+ with up to 400W of power, Bechtolsheim and Vusirikala stated. XPO modules are much simpler than OSPF modules which improves reliability as well. “Each 32-channel paddle card has only one microcontroller and one set of voltage converters, a 75% reduction in common components versus 4 OSFPs,” Bechtolsheim and Vusirikala wrote. 

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Cisco grows high-end optical support for AI clusters

Cisco has also upgraded its Network Conversion System (NCS) with a 1RU, 800GE line card offering 12.8T capacity, with 32 OSFP-based ports for 100GE, 400GE, and 800GE clients and 800ZR/ZR+ WDM trunks. The NCS 1014  doubles the density of previous-generation NCS versions and now includes MACsec encryption (IEEE 802.1AE) to secure point-to-point links with hardware-based encryption, data integrity, and authentication for Ethernet traffic, Ghioni stated. It supports enhanced capacity and performance with C&L-band support and NCS 1014 systems with the 2.4T WDM line card based on the Coherent Interconnect Module 8 and now supports 800 GE clients, which can be mapped directly to a wavelength or inverse multiplexed across two wavelengths to maximize reach, Ghioni wrote.  In the pluggable optic arena, Cisco is now offering a Quad Small Form Factor Pluggable Double Density (QSFP-DD) Pluggable Protection Switch Module that can monitor the optical link and switch traffic if it detects a fault in less than 50 milliseconds. The module occupies a quarter of the rack space compared to traditional protection devices—offering 90% rack space saving over available options, Ghioni wrote.  It is aimed at Metro and DCI network customers where sub-50 ms failure recovery is essential and data centers needing fiber protection without bulky hardware, Ghioni stated.  Cisco also added its Acacia developed Bright QSFP28 100ZR 0 dBm coherent optical pluggable in a standard QSFP28 form factor.  It is aimed at edge, access, enterprise, and campus network deployment. Cisco has been actively growing its optical portfolio  recently adding the Cisco Silicon One G300, which powers 102.4T N9000 and Cisco 8000 systems, as well as advanced 1.6T OSFP optics and 800G Linear Pluggable Optics. 

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Datalec targets rapid infrastructure deployment with new modular data centers

“We are engineering the data center with a new lens bringing pre-engineered system designs that are flexible and adaptable that enables a tailored solution for clients,” said John Lever, director of modular solutions at Datalec. The systems are flexible enough that these solutions cater for all types of data center, from standard server technology to AI and high-density compute. Datalec also provides “bolt-on” solutions, including a ‘digital wrapper’ including digital twinning and lifecycle and global support, Lever says. Another way Datalec says it differentiates from competing modular designs is a larger share of work is done offsite in a controlled manufacturing environment, which cuts onsite construction time, improves safety and limits disruption to live facilities, Lever says. The company competes with other modular data center vendors including Schneider Electric, Vertiv, Flex many others. DPI’s says its services are aimed at colocation providers, hyperscale and AI infrastructure teams, and large enterprises that need to add capacity quickly, safely and cost effectively across multiple regions.

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Study finds significant savings from direct current power for AI workloads

The result is a 50% to 80% reduction in copper usage, due to fewer conductors and less parallel cabling, and an 8% to 12% reduction in annual energy-related OpEx through lower conversion and distribution losses. By reducing conductor count, cabling, and redundant power components, 800VDC enables meaningful savings at both build-out and operational stages. AI-first facilities can see a $4 million to $8 million in CapEx savings per 10 MW build by reducing upstream AC. For a one-gigawatt data center, you’re saving a couple million pounds of copper wire, he said. Burke says an all-DC data center is best done with a whole new facility rather than retrofitting old facilities. “[DC] is going to be in a lot of greenfield data centers that are going to be built, and data centers that are going to go to higher compute power are also going to DC,” he said. He did recommend all-DC retrofits for existing data centers that are going to employ high power computing with GPUs. Enteligent’s unnamed and as yet unreleased product is a converter that takes 800 volts and partitions it to 50 volts for the computing servers. The company will provide a new power supply, power shelf that converts 800 volts DC to 50 volts DC much more efficiently than any current power supplies. Burke said the company is doing NDA level testing and pilot programs now with its product, but it will be making a formal announcement within the next few weeks. There are a number of players in the DC arena focusing on different parts of the power supply market including Vertiv, Rutherford, Siemens, Eaton and many more.

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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