The capital that businesses allocate to fuel their fleets is a significant line item in the budget. According to the 2023 report issued by the American Transport Research Institute, fuel costs increased 53.7% from 2021 to 2022. Failure to control this expense negatively impacts your company’s bottom line. To remain competitive, a company must control costs through effective fleet management protocols.
There are a variety of ways in which fleet fraud occurs. The use of dummy fuel tanks, purchasing items other than fuel or for personal vehicles, fuel card skimming, and fuel siphoning are some of the ways that a company’s bottom line is being impacted by fuel fraud.
Just as there are multiple ways to engage in fuel fraud, there are many ways to prevent it. Administrative and technological protocols can be deployed to detect and deter fraudulent activity. Administrative protocols include comparing receipts to the fuel card statements. If charges do not match up to tank capacity or mileage driven, fuel fraud may be occurring. Also observe the location of the fill-up. If it doesn’t coordinate with the route driven, it could be a sure sign of fuel fraud.
Technological protocols can include using highly developed telematics and digital payments. Similar to PayPal or Apple Pay, this technology is designed specifically for transportation and supply chain industries. These programs are proving very effective and advancing daily. They provide GPS tracking and use telematics to collect all vehicle and driver data necessary to detect fuel consumption and fraud.
Fleet managers should also consider using fuel tracking software to track expenses and monitor adherence to company policy. Fleet Management technology is emerging and developing quickly, so do some research to determine the best fit for your business.