Shell in fuel fraud warning

By Categories: Commercial NewsPublished On: Tuesday 4 October 2016

Man making notes on clipboardWith fuel accounting for 10 per cent of total expenditure for fleet operators in 2015, according to a global study commissioned by Shell Commercial Fleet, Shell has emphasised the significant role that fraud is playing in driving up costs.

One key finding of the Shell Fraud Matters Report 2015, conducted by an independent research firm commissioned by Shell, is that 50 per cent of UK fleet managers believe tackling fraud could cut their fleets’ fuel costs by 5 per cent or more.

Meanwhile, around 41 per cent were reported to believe that one in ten of their drivers are already committing some degree of fraud. Indeed, driver-led fraud is perceived by both managers and drivers themselves to be the most common type, Shell says, as compared to that perpetrated by other groups, such as external hackers.

A quarter of drivers questioned for the study claimed to have seen colleagues commit fraudulent activity, but only a third of drivers in the UK felt able to report fraud.   Shell also reported a gap of 31 per cent between how much fleet managers and drivers in the UK know about fraudulent activity.

Domestically, siphoning fuel is considered the most common form of fraud by 34 per cent of fleet managers and 12 per cent of drivers, Shell’s study found. This was closely followed by drivers paying for fuel with cash to hide additional purchases, negligent driver behaviour, and abuse of fuel cards by drivers.

“There are also more complex types of criminal behaviour, such as fuel card cloning, falsified or hijacked accounts and abuse of genuine fuel cards,” said the firm.

“While fuel cards still remain the most secure and efficient way for drivers to fill up on the road, greater use can lead to greater abuse as consumers and businesses alike transition to an ever more cashless society.”

“Compared to the types of fraud more easily conducted by drivers, 27 per cent of fleet managers and 8 per cent of drivers on average see more complex types of fraud as severely impacting the industry.”

“But there is some good news hshell_lr2ere,” added Scott McGregor, sales manager at Shell UK Commercial Fleet (pictured). “Fleet managers and drivers largely agree on how serious an issue fraud is for the industry. Agreeing is the first step to tackling the issue.”

He continued: “What we see from this data is that the onus should not be entirely on drivers. Our research shows that there is significant scope for fleet managers to use more tools and processes to enable them to monitor fraudulent activity more effectively.”

“There is also a greater need for more driver education. Currently, only 28 per cent of fleet managers in the UK run training courses for their drivers.”

Shell identifies a proactive approach to driver training and education as an important first step in tackling the issue. This might range from sessions on types of fraud, to education around fuel card PIN handling and filling up at stations with increased CCTV coverage.

Some tools available to fleets could be deployed more effectively, the firm said. These include online fuel card management solutions that help users analyse transactions according to specific criteria – such as when, where and by whom a fuel card is used – allowing fraudulent activity to be detected early and acted upon swiftly.

This is particularly effective for fuel card cloning and other higher-tech fraud cases, Shell added.

“Ultimately, the best way for businesses to achieve greater security against fraudulent activity, and keep fuel costs down, is to ensure they have the tools and techniques to protect against criminal activity and to  collaborate with reliable fuel card providers who employ cutting edge fraud detection techniques,” said the company.

“While the fight against fraud will run and run, fleet managers have a good shot at minimising it with the right tactics and processes, so helping to make significant savings on their business’ fuel costs.”

Images: Shell