Fuel cards are a convenient and essential tool for managing business expenses. However, as their use has grown, so too has the risk of fraud.
From unauthorised purchases to data breaches, fuel card fraud can result in significant financial losses and disrupt your business operations. In today's digital age, protecting your business from these threats requires more than just vigilance; it demands a proactive approach.
This article will guide you through practical steps to identify vulnerabilities, implement safeguards, and stay ahead of fraudsters.
Whether you’re a small business owner, or managing a large fleet, these strategies will help you maintain control, reduce risk, and ensure your company stays secure.
Business fraud risks
Business fraud comes in many forms, and fuel card fraud is just one piece of a broader risk landscape. Common types of fraud include:
- Cyber fraud: involves hacking, data breaches, and online scams.
- Employee fraud: occurs when employees exploit their positions for personal gain.
- Phishing: a tactic used to deceive individuals into providing sensitive information.
Fraudsters are becoming increasingly sophisticated, exploiting weak security practices, and leveraging advanced technologies to carry out their schemes. The financial, operational, and reputational impact of fraud can be devastating for businesses.
Recognising these risks is the first step toward building a robust fraud prevention strategy. By understanding how fraud occurs and where vulnerabilities exist, businesses can implement measures to protect assets, maintain compliance and foster trust with customers and employees.
What is fuel card fraud
Fuel card fraud is on the rise, with an increasing amount of cases being seen in toll, tunnel and bridge-related fraud. It is important to understand the different ways that fuel card fraud can occur and implement preventative measures to protect your business.
According to research by Shell, tackling fuel fraud could lead to more than 5% fuel cost savings for a business, highlighting the necessity to resolve this issue.
Most fraud cases consist of skimming and copy card fraud, where card data is stolen during a point-of-sale transaction via a small device. This allows fraudsters to access the person’s name and card number which can then be used to create a copied card, often designed to mimic a real, sometimes expired, fuel card. As a result, businesses can lose thousands of pounds, especially if this criminal activity goes undetected for an extended period.
Another tactic used by fraudsters is ‘shoulder surfing’ which HGV drivers, in particular, should be aware of. In this scenario, criminals will watch as a user enters their PIN or will even break into a parked vehicle to copy card data. HGV drivers will sometimes leave notes with their PIN and card details inside their vehicles, making them susceptible to this kind of fraud.
Is fuel card fraud a big issue in the UK?
As fuel cards are becoming increasingly popular in the UK so too are incidents of fraud, with cases rising every year.
The development of cashless payments provides the opportunity for fraudsters to infiltrate the security of cards and so it’s important to always remain vigilant when making a purchase with a fuel card.
Shell has reported that fuel card fraud is also being experienced during the delivery of fuel cards. 25% of fleet managers have claimed that fuel card details get stolen in the post whilst on the way to the customer.
This is a big issue in the UK as businesses are being defrauded before they even receive their fuel card. Furthermore, this form of criminal activity could easily go undetected as the security of the cards has been unknowingly compromised.
Role of insurance in protecting your business
Insurance plays a vital role in safeguarding businesses from the financial repercussions of fraud. Policies such as commercial crime insurance, fraud coverage or cyber liability insurance can help offset losses incurred from theft, embezzlement, or fraudulent transactions.
Additionally, insurers often offer risk assessments and resources to help companies identify vulnerabilities and improve their fraud prevention strategies.
While insurance can’t eliminate the risk of fraud, it provides a safety net, ensuring that businesses can recover and continue operations with minimal disruption.
To help protect businesses from fraud, we offer our customers automatic fraud protection (to a maximum of £5000 per account). This is often a paid-for service, but with Right Fuel Card, you receive this free of charge.
How to prevent fraud in your business
General fraud prevention
These essential strategies can help to prevent general business fraud:
- Establish clear policies: create and enforce guidelines for financial transactions, data protection and resource usage.
- Strengthen authentication: use multi-factor authentication to secure access to systems and accounts.
- Conduct regular audits: regularly review transactions and operations to detect and address irregularities.
- Leverage technology: utilise fraud detection tools and software to automate monitoring and flag suspicious activities.
- Limit access: ensure that sensitive information and systems are only accessible to authorised personnel. Right Fuel Card customers can stop cards online to ensure transactions cannot be made whilst waiting to get them back from drivers.
Fuel card fraud prevention
To protect your business against fuel card fraud, consider implementing these key preventative measures:
- Set clear usage policies: establish strict guidelines on fuel card usage, including restrictions on non-fuel purchases and daily spending limits.
- Invest in secure fuel cards: our fuel cards have advanced security features, such as PIN protection and 24/7 card blocking requests.
- Educate employees: provide training on proper card usage, fraud risks, and how to report suspicious activity.
- Utilise telematics systems: with telematics, you can monitor employees’ fuel card usage, and check whether the location and time of every fuel card transaction matches that of the vehicle.
David James, Revenue Director at Right Fuel Card says: “Fighting fuel card fraud requires the collaboration of all parties, be it the driver checking the card reader for signs of tampering or spotting people acting suspiciously on the fuel station; site staff ensuring that fuel is only dispensed to the vehicle linked to the card being used; fuel retailers ensuring that they have video surveillance and online validation of transactions; fleet managers checking their invoices for unexpected purchases while ensuring that their drivers are keeping their cards and PINs secure at all times; fuel card issuers ensuring that they have the correct prevention measures in place and are working together and with law enforcement to share intelligence and stay one step ahead of the fraudsters and cooperating in the investigation of criminal activity when it occurs.”
Both general fraud and fuel card fraud pose a significant threat to businesses of all sizes, but proactive measures can make a substantial difference in reducing risk and minimising impact.
By implementing clear policies, leveraging advanced technology, and educating your employees about the risks, you can strengthen your defences against fraud. Insurance policies and regular audits also provide valuable layers of protection to ensure financial stability.
Ultimately, staying vigilant and informed about emerging threats is key to safeguarding your business and ensuring long-term success.
For further information on fuel card fraud across Europe, we recommend ‘Mind the Trap’, produced by our German partner UTA Edenred.
