Spot the Signs of Fuel Fraud & Save Money
Managing fuel costs can be a complex process, especially when taking into consideration the risk and consequences of fuel fraud…
Unfortunately, fuel fraud is a fact of life for most fleets – and one that’s costly – so it’s vital that you have the means to know the telltale signs for spotting it. For example, you should ask yourself:
Do mileage figures provided by the driver correlate with odometer readings?
Does the volume of fuel listed on a receipt exceed the vehicles’ maximum fuel tank capacity?
Has the driver purchased the correct type of fuel?
Is the vehicle’s MPG reading unusually low?
If the answers to the above questions reveal discrepancies and the numbers don’t quite add up, you may be a victim of fuel fraud.
Fuel fraud presents itself in many different shapes and sizes so, in order to prevent it from happening in your business, it’s important to understand the different types and how they occur:
One of the most common forms of fuel fraud when employees are reimbursed, this refers to inflating mileage figures when personal vehicles are used for business purposes.
This can include numerous fraudulent actions such as filling non-approved vehicles; claiming a fuel purchase that exceeds a vehicle’s fuel tank capacity, and ‘side fueling’ when the driver pumps fuel into a container for personal use, but still charges the business.
Fuel Card Fraud
An increasingly common form of fraud, this refers to inflating fuel card transactions by sharing fuel cards and authorizing multiple pump purchases.
Fuel Type Fraud
This simply means purchasing the wrong type of fuel, which indicates that the purchase has been made for an unauthorized vehicle.
This occurs when fuel is removed from the tank of a vehicle for personal use. On occasion, the driver will also refuel his or her authorized vehicle.
As you can see, there are many different variations of fuel fraud. According to a ‘Fraud Matters’ study conducted by Shell, as many as 93% of fleet managers believe that some drivers are involved in fraudulent activity, and more than a quarter of drivers have admitted to witnessing deceitful activity at work.
PREVENTION – IS IT POSSIBLE?
Put simply, yes. There are numerous ways to crack down on fuel fraud, however, some methods can be time-consuming if relying on manual processes, and your company may still be vulnerable.