Fuel card fraud remains a massive issue in the transportation industry. Fraud incidents are increasing in both frequency and severity each year, costing fleets an average of 5 – 10% of their annual fuel spend.
As fleets look for smarter ways to control costs and improve security against fraud — and as the trucking industry becomes more digitized — learn about the benefits of cardless fueling.
How Does Fuel Card Fraud Happen?
There are several ways that fuel card fraud can happen, including:
- Stolen or Lost Cards – Misplacing your card or having it stolen can lead to thieves using it for illegal fuel purchases if the card isn’t locked or canceled.
- Card Skimming – This occurs when criminals install hidden devices on fuel pumps or point-of-sale terminals to capture your card information when you swipe.
- Phishing/Smishing – Scammers can drain your credit limits by sending fake emails or text messages asking for your account credentials or PIN.
- First-Party/Application Fraud – This is where individuals use their own, legitimate identity to commit fraud and apply for credit.
Each of the above fraud methods is external. However, internal fuel card fraud is also common in the trucking industry. Some internal methods include:
- Using company cards to fill personal vehicles
- Buying extra fuel in portable containers
- Purchasing unauthorized snacks, drinks and merchandise
What Is Cardless Fueling?
Cardless fueling replaces physical fuel cards with a mobile application or digital authentication process. Instead of swiping a card, you can use your mobile device to activate fuel transactions, as the system performs security checks, such as verifying your identity, vehicle information and location to authorize the purchase.
By eliminating physical cards, you gain greater visibility and control over fueling while creating a more secure experience for your business.
Why Cardless Fueling Is More Secure
Eliminates Physical Cards
With cardless fueling, you eliminate the risk of losing or having your physical card stolen, significantly reducing the opportunity for unauthorized transactions.
It also eliminates the possibility of card skimming, one of the most common methods of fuel card fraud, which costs drivers nationwide over $1 billion annually.
Verifies Driver Identity
Many cardless fueling platforms also require drivers to log in using secure credentials and, often, multi-factor authentication. With an RTS fuel card, for example, you’re required to enter a code at the pump to access your fuel.
As a result, your fleet can benefit from enhanced fuel card prevention by creating a direct, digital link between the fuel purchase and the driver.
Confirms Vehicle and Location Data
Another major advantage of using cardless fueling is the ability to track and validate transaction details in real time. Using location-based controls, you can greatly reduce the risk of fraudulent purchases by determining:
- Whether drivers are at approved/in-network stations
- Which vehicle is being fueled
- If the transaction aligns with your fleet’s internal policies
Keeps Digital Records
Certain platforms will provide access to real-time transaction data and analytics, helping you monitor fuel consumption and make more informed business decisions. Cardless transactions also allow your fleet to keep detailed digital records of things such as:
- Driver information
- Vehicle identification
- Fuel volume
- Location data
- Timestamps
This increased visibility makes it easier to identify suspicious behavior and maintain accurate records for reporting and compliance.
Join an Industry-Leading Fuel Card Program
With enhanced security features such as Card Lock and Fuel Codes, our cardless fueling solution, the RTS Fuel Card Program is one of the best ways to reduce fraud and control costs.
Fill out the form on the page to learn how RTS can help your fleet improve its fuel card fraud prevention strategy!