U.S. fleet managers see fuel-related fraud as a major problem

Research commissioned on behalf of Shell reveals that over half of fleet managers in the United States see fuel related fraud as a major issue for their business. More strikingly, 86 percent of U.S. fleet managers think some of their drivers are committing fraudulent activity. Yet, while one-third believe that improved fraud mitigation practices could effectively reduce fuel spend by 10 percent or more, the majority of fleet managers in the country are not taking proactive measures to educate their drivers. 

“Commissioning this new research has given us an even clearer a picture of the nature of fuel-related fraud – as told by fleet managers and drivers themselves. Because fuel is such a valuable resource, it will always attract criminal behavior and as a global fuel card provider, it’s our job at Shell to help our customers protect themselves,” said Henry Miller, General Manager of the Commercial Fleet Card Program for Shell in the U.S. “That’s why we recommend every fleet operator create a strategy for defending their business against fraud and, ultimately, reducing its impact on their bottom line.”

The findings are part of the inaugural Fraud Matters report that interviewed fleet managers and drivers in eight countries across the globe, including the U.S. In addition to casting fresh light on the scale of concern among the nation’s fleet managers, the report reveals drivers’ perspectives on fraudulent activity.

Two in five drivers admit to actually witnessing a colleague behave fraudulently at work. Nearly half of all drivers believe that loyalty program benefits are redeemed for personal use. Thirty percent also highlighted fuel siphoning highlighted as a common example. Other costly practices identified by managers and drivers include account hacking, negligent driver behavior and abuse of genuine cards by drivers. 

Key among these additional protection measures, according to U.S. fleet managers, is driver education – however, a lack of time and resources means only a quarter are currently offering fraud prevention training for staff. Consequently, while 72 percent of fleet managers claim to be aware of the latest anti-fraud solutions, just 44 percent of drivers feel similarly up-to-speed – a gap of nearly 30 percent.

“One of the biggest problems businesses have in combating fraud is that too often the latest guidance and information doesn’t make its way from the office to the driver’s seat. Online card monitoring, real-time detection and pre-set fill-up limits can be very effective in reducing criminal behavior. But to really win the battle, businesses must also invest the necessary time and resources into training staff on how to be smarter about fraud protection on the ground,” added Miller.

To help businesses stay ahead in the fight against fraud, Shell offers a series of industry-leading solutions. These include:

• Site Selector – The Shell Fleet Navigator Card’s unique site selector tool allows you to build your own network from any Shell and most other fueling stations in the country. This allows you to better manage your drivers while maximizing efficiency and optimizing fleet behaviors. All of which gives you the power to pick the sites you want, minimizing fraud and improving your bottom line.
• Real Time Detection (RTD) - The Shell Fleet Navigator Card’s fraud detection technology can identify criminal behavior in a matter of seconds. Based on the same system that banks use to detect credit card fraud, RTD filters the 260 million annual Shell fuel card transactions globally based on specific payment parameters. It then flags suspicious activity to account holders in real time.
• Dedicated fraud experts – Shell fraud case managers and analysts use advanced software to monitor every single payment made with a Shell fuel card globally. This ensures they can quickly detect any suspected fraudulent activity on a particular account – before reacting with precision.

To download a full copy of the Fraud Matters report, visit www.shell.us/motorist/shell-payment-cards/fraud-matters.html.