How to identify and prevent fleet fuel fraud by utilizing telematics data
April 20, 2023
When looking at your total fleet operating costs, it’s likely that fuel is amongst the highest expenses of your overall fleet spend composition. In fact, fuel accounts for over 33% of U.S. and more than 41% of Canada fleet spend*, representing a significant amount of your fleet budget, more so following the spike in fuel prices in mid-2022.
While the cost of fuel is a factor that can’t be controlled, there are aspects of fleet fuel spend that, when monitored and addressed appropriately, could reduce fuel expenses. We traditionally find that 1-3% of all fleet fuel transactions are fraudulent. Our partner, Motorq, finds that there may be even more fuel misuse – between 3-5% – which can be uncovered by analyzing combined fuel transaction data with telematics data.
What is fleet fuel fraud?
This all-encompassing term refers to the misappropriation of company resources that are intended to be used for fueling fleet vehicles. Examples of fleet fuel fraud include the misuse of fleet fuel cards to make purchases for items other than fuel such as unauthorized items from the gas station store or fuel theft through purchasing fuel for an unauthorized, non-fleet vehicle. Fleet fuel fraud comes in many forms and remaining vigilant in monitoring fuel transactions can save your fleet’s bottom line from costly misuse.
Fuel fraud warning signs
You might be asking yourself, “how do I identify fuel fraud?” or “how can I prevent fleet fuel fraud all together?” The first step to preventing fuel fraud is knowing what the warning signs are. Monitoring the fuel spend for hundreds or even thousands of fleet vehicles to identify potential fuel fraud can feel like an overwhelming task, but it doesn’t have to be.
Protecting your fleet from fuel fraud
With Element Fleet Management as your partner, we can help you identify and prevent fuel misuse through traditional and telematics connected data methods.
Fleet fuel cards provide purchase controls and security
Implementation of a fleet-wide fuel card provides a foundation of protection tailored to the specific needs of your fleet. Designed purposely for fleets, your fuel service card puts you in control to reduce fuel costs and protect against fraud through security and authorization settings such as:
- Driver personal identification numbers (PINs) for card use,
- Transaction limitation configurations,
- Detailed exception reporting and fraud monitoring and more.
How telematics can help fleet managers identify and prevent fuel fraud
A fleet fuel card coupled with the powerful data from a telematics product can provide your fleet with seamless connected insights to prevent fuel misuse that could otherwise slip through the cracks. With the artificial intelligence and visual storytelling of Fuel EKGTM, you can easily identify additional fleet fuel exceptions such as:
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A fuel card being used without the appropriate vehicle present,
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Filling over the total tank capacity or the expected, remaining tank capacity,
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Abnormal fill-up location or frequency and more.
Additional tips to save on fuel costs with telematics data
Beyond fuel card fraud and misuse, a connected fleet has an advantage to identify driver behaviors that, once corrected, can save costs for your fleet. Contact Element’s fleet telematics experts today so we can help you identify the connected fleet solution to reduce fuel-related expenses such as idling and route optimization to improve productivity.
*Fleet fuel cost percentage of total spend composition from April 2022 – March 2023
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