Things are a bit uncertain now, with all that is going on in the world. Business owners everywhere are taking a close look at the way their businesses run and the way employees interact with one another and customers.

While we want to believe fraud isn’t prevalent at times when we are focusing on pulling together, it is actually one of the times we need to be more focused on it. Small businesses are particularly vulnerable to fraud.

There are a few different types of fuel fraud that businesses should be aware of including:

  • Skimming—when a thief manipulates a credit card scanner to steal the information off the card.
  • Internal fraud—when employees misuse fuel privileges or deliberately steal fuel by buying excess fuel for personal use, using company vehicles for personal use, storing excess fuel to sell or siphoning off fuel.
  • Phishing—an email or text is used to retrieve credit card or fuel card information through an online fraudster posing as a trusted source.
  • Data breaches—when a hacker breaks into a private database to steal cardholder information to create new accounts or to misuse current accounts.

These are some of the significant ways that fuel fraud occurs. Businesses need to take steps to protect themselves, as it can often be challenging to prove fraud has occurred, especially when it comes to internal fraud. Unfortunately, employees who misuse company fuel cards or credit cards can account for a large portion of fuel fraud transactions.

One reason internal fuel fraud can be such a significant issue for many companies is a lack of understanding about what fuel theft is. Fleet managers and drivers often disagree over the ethics of fuel theft. According to an Edelman Berland research firm report commissioned by Shell, nearly 86% of US fleet managers believe that some of their drivers are committing fraudulent activity. In contrast, almost 1 in 6 drivers do not consider fuel fraud to be a big issue at all, even though 2 in 5 drivers admit they have seen another driver act fraudulently.

Why is there a disconnect between managers and drivers? It may come down to a misunderstanding of how much fuel fraud truly affects a business. Drivers on the road may not think that misusing fuel for their purposes is that big of a deal. They don’t see the budgetary effects of little extra fuel costs here and there. Managers, on the other hand, are often watching over razor-thin profit margins, searching for ways to save money. Every little cent makes a difference to the business, and so extra fuel charges can start to add up.

The best way to prevent fraud is to detect when it starts to happen. Managers need access to fast, accurate expense tracking to stay on top of charges before they occur. This way, they can identify problematic fuel purchases and find out why they are happening. Using this information, a manager can then warn drivers to stop the inappropriate behavior or train them on how to prevent fraudulent transactions. The problem many businesses face is that they don’t have fast and accurate tracking.

We can help with that. Our fuel card program helps to prevent fraud and protect businesses when it happens. Every CFN card comes with a card number, quantity limit and driver identification number, which is set to a pre-approved amount. Drivers will then be more careful to avoid misusing their fuel privileges. Email notifications of potential fraud alerts can also be set up for early detection.

The CFN fleet card program is set up with a number of controls to help cut back on fuel misuse. These controls can help train drivers to use their fuel privileges more appropriately and include:

  • Personalized driver profiles
  • Daily transaction limits
  • Time of day and weekly control limits
  • Product control
  • E-receipts
  • Custom fuel usage reports

All of this information is easily accessible for managers and businesses to stay on top of their fuel expenses. If fuel fraud is occurring, it can be detected quickly before high costs arise. The more closely you track your fuel expenses and impose limits on fuel privileges, the easier it will be to protect your business.

We are sure that most drivers don’t intend to misuse fuel privileges. It only takes a few bad apples to spoil the bunch. That’s why the CFN fleet card limitations protect both businesses and drivers. With these limits, clear expectations and fast-tracking, everyone can stay in line. It will help cut back on expenses, which is what every business needs. Sign up now for the program.