What is Fuel Fraud and How Can Businesses Prevent it?
Fuel fraud is sadly one of the most common problems for lots of businesses. This article is going to look at the details of fuel fraud and what companies can do to prevent it. The consequences of any type of fraud are devastating for businesses, and it can even leave them unable to recover financially. This means the business ultimately has to shut down, which is the worst outcome for all involved. Not to mention it is a violation of trust between workers and management that is equally as devastating. Keep reading to find out more.
What is Fuel Fraud? A Deeper Look
Fuel fraud is any financial wrongdoing related to fuel in a business context. This can be a misuse of company fuel cards, lying about mileage, lying about usage, and so on. Company fuel cards are often given to employees in fleets, and fuel allowances are allocated to care workers and similar. There are several types worth noting. These are:
- Mileage Fraud: When the mileage does not add up to the reported amount. Either reporting too many miles or too few.
- Fuel Exploitation: When the worker not only puts fuel into the vehicle on record but another one or a container as well. It could also be when fuel is taken from a company vehicle and put into a personal car or van.
- Card Tampering: Any unauthorized use of a company fuel card. Buying a sandwich and a drink is not authorized and is as much fraud as handing the card over to another person to use.
How to Prevent It From Happening
There is no guaranteed method to stop fuel fraud from ever happening. However, there are restrictions you can use to limit access and usage.
The Card Choice
For example, using a combined technology that draws on GPS data to cross reference and pinpoint a Fuelman card usage is a reliable product for preventing fraudulent activity. The ability to impose monetary limits and monitor usage with a driver specific PIN means it is better able to protect you across multiple channels.
It is also important to let staff know the consequences of fuel fraud which could be anything from termination to criminal charges being brought against them. This is to act as a deterrent. Lastly, it is your responsibility to double-check all data brought in by employees.
How to Spot Fuel Fraud
The methods are more preventative and precautionary to avoid any mistakes being made that would paint the business in a negative light. Make sure you are checking the following things.
- Who has access to the fuel cards and allowances?
- The odometer should match with reported mileage usage from the driver.
- The total sum should not exceed more than a tank’s worth of fuel.
Fuel fraud is something that will always happen, especially as the price of petrol or diesel keeps rising. People are facing a hard choice, and the temptation is sometimes just too much. However, that doesn’t make it right, and it is a serious issue to address.