A. Fraud is definitely a big issue for companies managing their fuel costs.
One of the biggest issues is skimming. Criminals install devices on pumps at some fueling stations to read information from magnetic-stripe cards as they’re swiped. Then they steal the account information and clone a counterfeit card to be used elsewhere. EMV chip cards are on their way, but it will be a few years before they are accepted everywhere, perhaps 2020 at the earliest.
So, for now, a fuel card helps in numerous ways. By setting up a fuel card with driver identification numbers, companies can track unauthorized spending or easily manage lost or stolen cards. By setting up controls by driver or by vehicle, managers can get better insight and better control into what their drivers are buying. And many fuel cards have an automatic pump shut-off feature that will stop a fuel purchase that exceeds company policy before it can be completed.
Fraud also takes the form of employee misuse, which can be remedied with tight tracking of fuel card purchases. Another remedy is pairing a fuel card with GPS tracking devices known as telematics, which tells savvy managers whether the vehicle a fuel card says was being fueled at a certain station was actually at that station – or somewhere else.