Fuel card fraud is a growing problem for many businesses, and it’s not just an issue of financial loss. It can also damage your reputation and erode trust with employees. To prevent fuel card fraud from taking place, regular monitoring and auditing are essential. In this blog post, we’ll explore the reasons why fuel card fraud occurs, how to detect it early on, and what steps you can take to protect your business from this type of crime.
According to Fleet Financials, “65% of companies reported having experienced fraudulent attacks”. So buckle up as we share some key insights that will help keep your fleet running smoothly without any fraudulent activity!
Introduction to Fuel Card Fraud
Fuel card fraud is a type of credit card fraud that involves the unauthorised use of a fuel card to obtain diesel, petrol, or other fuels. However, fuel cards can also be stolen or lost, which can allow criminals to use them to purchase fuel without having to pay for it.
Fuel card fraud can be difficult to detect because it often occurs in small amounts over time. For this reason, it is important for businesses to regularly monitor and audit their fuel card usage. By doing so, businesses can catch fraudulent activity early and prevent it from becoming a larger problem.
Causes of Fuel Card Fraud
One of the most common causes of fuel card fraud is employees using cards for personal use. This can happen in a number of ways, including employees making unauthorised purchases with cards, using cards to get cash back, or using cards to buy gift cards or other merchandise. Another common cause of fuel card fraud is employees selling fuel cards to third parties, who then use the cards to make unauthorised purchases. Fuel card fraud can also occur when cards are stolen and used to make unauthorised purchases.
Benefits of Regular Monitoring and Auditing
Regular monitoring and auditing of your fuel cards is the best way to avoid fraud and abuse. By keeping a close eye on your fuel card transactions, you can quickly identify any suspicious activity and take steps to prevent it from happening again.
Here are just some of the benefits of regular monitoring and auditing:
1. You can catch fraud early
The sooner you catch fraud, the less damage it will do to your business. By monitoring your fuel card transactions on a regular basis, you can quickly spot any suspicious activity and take action to prevent it from happening again.
2. You can improve your overall security
By auditing your fuel cards regularly, you can identify any weak spots in your security system and take steps to fix them. This will help reduce the risk of future fraud and make it easier to catch any attempts at fraud that do occur.
3. You can save money
Fuel card fraud can be costly, so catching it early can save you a lot of money in the long run. In addition, by improving your overall security, you can reduce the chances of future fraud occurring, which will save you even more money.
How to Monitor and Audit Fuel Card Usage
If your business relies on fuel cards to help manage expenses, it’s important to regularly monitor and audit usage. Fuel card fraud can be costly and difficult to detect, but there are some measures you can take to help prevent it.
Here are some tips for monitoring and auditing fuel card usage:
- Review statements carefully and look for any unusual activity. If you see anything out of the ordinary, follow up with the cardholder to investigate
- Set spending limits for each card and track usage closely. This will help you identify any potential abuse or misuse of the cards
- Compare fuel receipts to credit card statements to ensure charges are accurate. This is especially important if you have employees who refuel their own vehicles
- Conduct periodic audits of fuel expenses, looking for any discrepancies or red flags. Be sure to document everything so you can take corrective action if necessary
By following these tips, you can help prevent fuel card fraud and keep your business on track financially.
Tips for Better Fuel Card Security
- Keep an eye on your invoices – check your fuel card invoices regularly and report any discrepancies to your fuel card provider immediately
- Be aware of unusual activity – if you notice any suspicious or unusual activity on your fuel card account, such as unauthorised transactions, contact your provider right away
- Keep your PIN safe – never write down or share your PIN with anyone
- Monitor your account online – most fuel card providers offer online account management tools that allow you to view recent activity, set up alerts, and more. Taking advantage of these tools can help you stay on top of your account and catch any fraudulent activity quickly
- Report lost or stolen cards immediately – if you lose your fuel card or it is stolen, contact your provider right away so they can cancel the card and issue a new one
How Fuelwise Tackles Fuel Card Fraud
We have put in place a number of measures to help prevent fuel card fraud.
- Limiting purchases to strictly fuel – with Fuelwise Fuel Cards the products available are limited to fuel
- Limits – every card is set with transaction, daily and weekly fuel limits
- PIN – a unique four digit PIN is applied to every fuel card
- Online Management – every customer receives access to an online account where they can stop and cancel fuel cards if lost or stolen
- Internal monitoring – we have a specialist inhouse team responsible for monitoring transactions and spotting strange or unusual drawing patterns
Conclusion
Fuel card fraud can be a costly and disruptive issue for businesses. Regular monitoring and auditing is the key to ensuring fuel card use is kept secure and compliant with company policies, while also protecting against any potential risks from fraudulent activity. By implementing effective monitoring processes, businesses can prevent fuel card fraud and protect their bottom line.
