Business

Fuel Fraud: Do You Know How It’s Hurting Your Business?

Fuel cost management can is a daunting task for every fleet manager. When you take into account the risks and the consequences of fuel fraud to a business, you will realize that quite several enterprises lose a lot of money to truck fuel card fraud.

Unfortunately, this has become quite a common and very costly problem for many fleets. It is therefore crucial, as a fleet owner and manager that you know how to identify fuel fraud.

As you continue to evaluate whether your fleet is at risk of fleet card fraud, here are questions that you need to ask.

  • Does the amount of fuel indicated on a receipt match the vehicles tank capacity?
  • Is the correct type of fuel indicated on the invoice?
  • Why is the vehicle’s MPG abnormally low?
  • Do the odometer readings sync with mileage reports?

If your questions do not provide solid answers, the chances are that you and your fleet are victims of fuel fraud. In order to prevent fraud, you must know how it happens.

Here are the most common violations when it comes to fuel fraud.

  • Mileage Inflation

Remember when you asked if the odometer readings matched the mileage reports? This is the most common form of fuel fraud. You will find that the vehicles mileage report has been inflated and is different from the vehicles odometer readings

  • Fuel card Fraud

Be on the watch out for your workers sharing fuel cards, allowing several transactions to happen within a short period of time or the fuel card being invoiced by multiple pumps at the same time.

This could signal that your employees are selling fuel at the pump and charging it to the company card. They could also be using the company truck fuel card to fill their vehicles.

  • Fuel Syphoning

Fuel siphoning is the act of removing fuel from the tank of a vehicle. It is usually done for personal gain. Sometimes, your employee will syphon fuel from the company vehicle and use it to refill their private car or sell the fuel.

If you check your invoices in this case, you will notice discrepancies where the vehicle is being refuelled several times in a short period.

  • Fuel Type Fraud

This is quite common and very easy to see. You will realize that your drivers keep purchasing the wrong kind of fuel when the invoices get back to you.

Chances are, fuel has been purchased for the wrong vehicle, and in most instances, it is not one of your fleet vehicles.

  • Side Fueling

This is an act where the driver is involved in over fuelling the tank, fuelling unauthorized vehicles or pouring fuel into a container that is not the tank of the vehicle for personal gain.

With the many different kinds of fuel fraud, it is easy for companies to lose a lot of money.

However, it is essential to realize that this is preventable, and one of the best ways to do this is by utilizing truck fuel cards.

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