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Deceptive shipping practices (DSPs) are tactics utilized by bad actors to evade detection, sanctions, and regulations while engaging in illegal operations, such as oil smuggling and illegal trading with sanctioned countries. These practices can make it difficult to track the movement of cargo, identify the true owners of vessels, enforce sanctions, and apprehend criminals.
How Have Deceptive Shipping Practices Evolved?
Deceptive shipping practices (DSPs) have evolved by adapting quickly to new vulnerabilities in both legacy systems and emerging technologies. Deceptive actors constantly exploit loopholes in regulations, leveraging advancements in communication, logistics, and data manipulation, to stay ahead of enforcement efforts. The Russia-Ukraine war and its accompanying sanctions have further accelerated changes in DSPs, causing organizations to struggle with rapid compliance efforts. Geopolitical conflicts, such as Houthi attacks, and technological innovation continue to create opportunities for deceptive actors to refine their tactics.
New tactics have emerged, with the umbrella term “AIS spoofing” distracting the maritime industry with multiple interpretations. Within this concept, there are multiple tactics involving the use of various identities, transmitters, and even location (GNSS) manipulation methodologies that are growing exponentially compared to other deceptive shipping practices.
The Shift in 2020
An advisory published in May 2020 by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), Department of State and the Coast Guard, listed seven key deceptive shipping practices that are commonly used by sanctions evaders to disguise illicit trade.
This was the first time U.S. authorities detailed the responsibilities and expectations that private businesses connected to the maritime sector must adhere to. Beyond merely mapping these practices, the advisory laid out recommendations for each industry on how to proactively conduct due diligence that can identify these practices, “in order to limit the risk of involvement with sanctionable or illicit activity.”
Three Types of Deceptive Shipping Practices
To effectively identify and mitigate risks, it’s crucial to clearly define deceptive shipping practices. We categorize deceptive shipping practices into three groups:
The Classics (Seven DSPs Identified by OFAC)
AIS manipulation: disabling or tampering with AIS data to hide vessel movements
Vessel identity alteration: changing vessel names or IMO numbers to obscure identities
Document falsification: forging cargo or vessel documents, often for sanctioned goods, like petroleum
Ship-to-ship (STS) transfers: conducting illicit transfers at sea, typically in high-risk areas, to evade sanctions
Voyage irregularities: using indirect routes or detours to hide a cargo’s true origin or destination
False flags: using falsified flags to conceal illicit activities
Complex ownership structures: utilizing shell companies and layered ownership to hide the real owner
2. Identity Games
Identity tampering: falsifying a vessel’s AIS data or physical features to mislead.
Identity theft: one vessel assumes the identity of another
Identity laundering: ships manipulate identities, including assuming shell identities to hide original identities
Dual transmission: using multiple AIS transmitters to broadcast different identities
Flag hopping: frequently changing the vessel’s flag to avoid detection
3. Seafloor Strategies
AIS handshake: a decoy vessel’s identity is used to cover up the true activities of another vessel
Zombie vessels: using the identity of scrapped ships for illicit operations
How Can Windward’s AI-Powered Platform and Solutions Help?
Windward’s AI-powered platform and solutions assist by providing real-time insights into vessel behaviors, flagging anomalies such as AIS manipulation, identity laundering, and other deceptive practices. The technology integrates multiple data sources to offer predictive risk assessments, helping businesses stay compliant with sanctions and avoid exposure to illicit activities. The AI continuously monitors maritime traffic, offering a proactive approach to detecting potential risks and enabling faster decision-making to mitigate threats.
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