Fleet News

Fraud likely to increase as fuel costs escalate

Rising fuel prices will lead to an increase in fraud, according to a report published this week.

Despite low pump prices, crude oil costs are spiralling, with demand for oil likely to put pressure on fuel markets later this year.

This will lead in turn to an increase in fraudulent activity, such as when company drivers working under a pay-and-reclaim system are sometimes tempted to claim excess fuel expenses from their employers.

These systems are open to abuse because of the volume of paperwork they accrue.

Other scams have included drivers filling up their partners’ cars on the company bill and siphoning off fuel for private use.

The report, from fleet software providers cfc solutions, advises fleets to implement simple fuel saving and monitoring measures to combat the threats.

Andy Leech, business leader at cfc, said managers “don’t have to simply face rising fuel cost with a grim face, swallow, and pay the bill” but should pre-empt price increases and potential fraud implications.

Basic savings can be made by using fuel-efficient vehicles, directing drivers to use cheaper outlets and watching mileage.

Mr Leech highlighted the effective use of fuel cards and relevant software systems in reducing fraud.

He said: “With fuel cards, data can be automatically loaded into fleet management systems and abuses easily identified.”

“This can be done by limiting the type of spend available and also analysing spend by driver and vehicle.”

“Our advice is simple,” he said. “Keep using fuel cards in conjunction with fleet software because this is the best way of tracking spend.”

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