Managing a fleet often involves streamlining fuel and road-related expenses with fleet cards. These cards offer convenience for drivers and help streamline your company’s accounting processes. However, without proper safety protocols, fleet cards are susceptible to fraud, which can result in data security theft and potential financial loss.
To protect your business from fleet card fraud, learn how to detect different types of card fraud schemes, such as skimming, phishing, and internal fraud. Our guide will also provide safety reminders for fleet managers and drivers to help keep your fleet cards secure.
Understanding Different Types of Fleet Card Fraud
Fuel card fraud can be perpetrated in various ways, and it is mainly categorized as internal or external fraud. Internal fraud involves an employee or any authorized person misusing a card for invalid purchases. External fraud involves a third party who illegally obtains and uses the fleet card’s details. Both examples are considered fraud because they entail some form of misrepresentation and unauthorized use of company resources.
Read more about fleet card fraud trends by clicking on the links below:
- Forms of External Fuel Card Fraud
- Understanding Internal Fleet Card Fraud
- 5 Safety Reminders for Fleet Managers
- 8 Safety Tips for Drivers When Fueling Up
You can also click here to begin a Fuel Card Program with SC Fuels.
Forms of External Fuel Card Fraud
External fraudsters typically use some form of technology to create subtle and elaborate schemes that manipulate fleet card holders into entering important details. Skimming commonly occurs at gas pumps and automated teller machines (ATMs), where drivers use their fleet cards. Meanwhile, phishing attacks occur via emails, text messages, or even phone calls.
Learn more about the three types of external fuel card fraud you should watch out for.
1. Fuel Card Skimming
Fleet card skimming captures sensitive information from the fuel card’s magnetic strip. External parties use devices that are discreetly installed on or inside a card reader. These attacks can happen anywhere electronic payments are made. Once a card is swiped, the skimmer records the data like the following from the magnetic strip:
- Card number
- Card verification value (CVV) code
- Expiration date
- Other personal information (such as name)
One common tactic is placing a fake keypad over a reader’s real buttons to record your personal identification number (PIN) when you access your account. The skimmer then retrieves the stolen data, the fraudster will return to the site to collect the device or, in some cases, transmit the information through wireless or Bluetooth technology.
Once they steal your fleet card information, they can use it to make unauthorized purchases, create counterfeit cards, or sell your card information on the black market. According to the Federal Bureau of Investigation (FBI), financial companies and consumers lose over $1 billion a year to skimming schemes.
How to Avoid Skimming
To keep your fleet card safe from skimming, here are things you should do:
- Use contactless payments: Consider paying via contactless or cardless swipe options when available, as they are more secure than swiping or inserting your fuel card.
- Check card readers: Always inspect card readers for any unusual attachments or inconsistencies in the keypad’s material, color, and shape. Unusual details may indicate a fake keypad overlay. If the card does not slide easily, there may be a shimming device.
- Cover the keypad: When entering your card PIN, always cover the keypad
- Avoid damaged gas pumps: When using a fuel pump, select one that is well-lit. They are less likely to be tampered with or damaged when people are around.
- Avoid stand-alone ATMs: Like gas pumps in secluded areas, do not use poorly lit ATMs or stand-alone ATMs in convenience stores. These machines are not as secure as bank-owned ATMs and are prone to tampering.
- Monitor your transactions: Establish the habit of tracking your fleet card transactions and flagging any suspicious activities on your account. If you find anything unusual, notify SC Fuels right away so they can take action.
Contact your SC Fuels Dedicated Rep for more information.
3. Phishing Attacks on Fuel Cards
A phishing attack is a cyberattack where external parties impersonate legitimate organizations or individuals to steal sensitive data. Unlike skimming schemes that occur in payment locations, phishing occurs through emails, texts, phone calls, and other communication platforms.
These messages are designed to deceive you into sharing private information, such as your username and password, to access your fuel card account. They also typically contain urgent information that seemingly comes from trusted sources. Once your fleet card account is hacked, attackers can make illegal purchases and cause significant financial loss.
Phishing attacks are classified into different variations, such as the following:
- Pharming: Data can be acquired from malicious emails or downloads. Pharming involves installing malicious code on your server or computer, leading you to a fake website that manipulates you into entering your fuel card account details.
- Smishing: This is achieved through mobile phone text messages. Smishing messages may claim to come from your fleet card provider, asking you to “verify” your account details or click on a malicious link.
- Vishing: Also called voice phishing, vishing involves using phone calls or voice messages to impersonate your bank or fleet card provider. The attacker may also ask you to “verify” your card details.
How to Prevent and Recognize Phishing Attacks
Keep in mind that companies and banks generally do not contact you to ask for your username or password. To help protect your fleet from fraud, do not click on links or attachments that may compromise your computer. If you really need to reach out to your bank or fleet card provider, go to their official website for contact details. Do not call the number in any unverified email.
Next, It is also a good idea to update your computer and mobile phone security software to block phishing messages. Additionally, be cautious of the information you share on social media or any online platform. Information such as birthdays, locations, or relatives’ names can give hackers clues on how to crack personal security questions.
Phishing attackers regularly update their tactics to sound convincing. To identify signs of phishing scams, watch out for the following factors:
- Slight spelling differences: Scammers typically use email addresses or brand names similar to those of an actual organization or individual. Look closer and compare it to the company or person to recognize the difference.
- Generic greetings: A generic email or text greeting is a sign that the message is targeting many card users in bulk. Legitimate organizations would typically address customers by their name.
- Urgent or threatening tone: Phishing attackers can make up scenarios, such as a failed payment transfer or an invoice you know nothing about, to seem urgent. Do not engage. Unsolicited messages like these are likely scams.
- Strange offers and links: This can be a free coupon, gift card, or even a refund you are unaware of. They may ask you to click a link to claim it or log in to verify. Again, do not click anything.
Where to Report Fraud
If you have experienced skimming or phishing fraud, file a report on the Federal Trade Commission (FTC) official Identity Theft website. Authorities can help you get a personal recovery plan and contact SC Fuels.
Understanding Internal Fleet Card Fraud
As a large trucking company or a business with a large fleet, you want to trust that your employees will responsibly manage company resources. However, there are times when a driver in your team might use their fuel card for other purchases, which can result in significant financial losses. For this reason, it is important to understand how internal fraud happens to protect your company’s fuel cards.
Internal fraud happens in various ways, such as the following:
- Misuse: An employee uses the fleet card to purchase fuel for their personal vehicle.
- Side fuel tactic: A worker fuels the company vehicle while filling a secondary container, such as a mobile tank or jerry can. The employee can claim it is one transaction.
- Multiple transactions: An employee might collude with a cashier to charge multiple or inflated gas transactions. The cashier can compile the charges and split the difference with the employee.
- Slippage: This occurs when an employee purchases non-fuel and transportation-related expenses, such as snacks, souvenirs, and even car wash services for their personal vehicle.
- Family and friends fraud: Watch out for employees who allow their friends or family members to use their fuel cards.
How to Detect Internal Fraud
Detecting internal fleet card fraud requires vigilant monitoring and a proactive approach from both the management and employees. Start by choosing a reliable fuel card provider with comprehensive tracking, automated alerts, and custom controls to identify suspicious spending patterns.
These tools provide timely alerts on unusual transactions, helping prevent significant financial losses and creating detailed reports. Restrict purchases based on criteria like time of day, geography, and amount. Fleet managers should maintain detailed records of fuel mileage alongside fuel purchases to identify spending discrepancies. Below are specific fuel card fraud signs to watch out for:
- Erratic spending patterns: Check for significant increases in fuel charges, especially during non-business hours.
- Charges outside expected routes: Note when the fuel card is logging charges at different locations from established routes.
- Mismatched fuel purchases: The fuel type should be consistent with the company vehicle’s fuel. If it is mismatched, there could be internal fraud.
Tips to Prevent Internal Fleet Card Fraud
Establish clear guidelines and practices that minimize the risk of internal fraud. Companies and fleet managers can implement the following strategies for fleet card protection:
- Assign one card: Ensure each vehicle has one dedicated fuel card. This makes it easier to track charges. Enroll in e-receipts and/ or exception reports.
- Educate drivers: Outline fuel card restrictions and emphasize the importance of honesty and accountability. Implement a Driver/ Fuel Card Policy. Contact your SC Fuels Representative and request a copy of our Driver Fuel Card policy (available in English, Spanish and Mandarin).
- Set spending limits: Control expenditures by implementing daily or per-transaction limits to prevent overspending. Monitor transactions daily via the SC Fuels Portal. Look for multiple uses in a short period of time, out-of-state purchases or large quantities fueled.
- Encourage transparency: Foster cooperation with employees. A transparent company culture significantly reduces the risk of fraud and helps protect your business.
Contact your Dedicated SC Fuels rep to review and update fuel card restrictions.
5 Safety Reminders for Fleet Managers
To help prevent fleet card fraud, we compiled five essential safety tips for fleet managers:
- Tailor fuel cards: Assign fuel cards based on the specific needs and usage patterns of each vehicle and driver to ensure proper tracking and management.
- Monitor daily transactions: Review fuel card activity reports daily for unauthorized or suspicious charges, such as unusual times, locations, and costs.
- Set real-time alerts: Enable alerts with SC Fuels to receive notifications immediately if there is any unusual transaction, especially if it exceeds limits.
- Check billing statements: Regularly match billing statements with your records to spot inconsistencies and ensure accurate accounting.
- Encourage driver vigilance: Remind drivers to protect their fuel cards, report suspicious activities, and follow policies to reduce the risk of fraud.
Contact your Dedicated SC Fuels Rep to review your Fleet Card Controls.
8 Safety Tips for Drivers When Fueling Up
Besides fleet managers, drivers must stay alert to uphold fleet card safety and avoid fraud. Below are safety reminders drivers should follow:
- Use contactless payment: Whenever possible, use no-contact or cardless swipe payments.
- Avoid damaged pumps: Always choose a well-maintained pump at a trusted, well-lit gas station. Avoid using pumps that seem out of order.
- Inspect card readers: Check for any signs of tampering, damage, or strange attachments before using the card reader. If something seems off, do not use it.
- Spot fake keypads: Ensure the keypad feels securely attached and does not appear raised or spongy.
- Survey the area: Do not scan unusual signage or QR codes that might lead to phishing websites.
- Protect your PIN: Cover the keypad when entering your PIN.
- Check receipts: Always keep receipts and compare them with your fuel card statements for accuracy. Report any discrepancies immediately.
- Report suspicious activities: If you notice suspicious fuel card charges, report them to the gas station attendant, your fleet manager, and local authorities right away.
Trust SC Fuels for a Secure Fuel Card Program for Your Business
Prioritizing fleet card safety helps protect your business from fraud, data theft, and financial loss. Partner with SC Fuels for secure and reliable Fuel Card Programs with comprehensive monitoring services that enable a transparent view of fuel purchases to detect any suspicious activity. We also offer dedicated account management and cardless swipe technology for safer transactions that prevent card skimming.
Ideal for large trucking companies, our Fuel Card Program makes it convenient for drivers to fuel up and get discounts with 24-hour access to more than 320,000 eligible fuel card sites, retail gas stations, and truck stops nationwide. Your drivers can also obtain discounts when they use our fuel cards.
Contact us online to learn more about our Fuel Card Programs and how they can benefit your business. We can tailor a fleet card specifically for your needs.
Established in 1930, SC Fuels is one of the largest petroleum distributors in the United States, serving thousands of businesses, including the top companies in the industry. We specialize in branded and unbranded fuel delivery services, including our fleet card services.
