Fuel Card Fraud – Are You Reviewing Your Activity?
It’s always Interesting how fraudsters continue to find new ways to commit theft, and often times it’s linked to something that’s going on in the economy.
In the last couple of weeks, we have received notice from a couple of trucking companies, that outside parties have stolen their fuel card credentials, and used them to purchase fuel – often times several states away from the tractor. As we’re all well aware, fuel prices are at historic highs, which means this is an extremely costly event – $1,700+ per event. It appears the FBI is also involved as this continues to evolve into a wide spread event across the nation. The FBI is now focusing on determining how the fuel card credentials are being obtained: card reader at the pump, hacking into the fuel card system, etc.
We recommend management and their teams pay close attention to your fuel spend, and consider the review and processes in place around the analysis of fuel spend. With the rising fuel prices, it’s more difficult than ever to ensure that prices are increasing by an appropriate amount. Additionally, there are ways to further safeguard the possibility of theft through technology. Many carriers have the ability, often for an additional cost, to link their fuel cards to their GPS devices, and set parameters around where the fuel cards can be used. For example, if the fuel card isn’t within one mile of the tractor, the card will not work.
CLA is here to help. If you have any questions or would like assistance in addressing this risk, please do not hesitate to reach out.
Brandon is a CPA and trusted advisor with providing accounting, assurance, tax, and consulting services to transportation & logistics industry companies and their owners. Brandon is also the Managing Principal of the Transportation & Logistics Industry Group at CLA.
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