Last Updated December 19, 2025
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From simplifying payments to reducing costs, there are so many benefits to using a fuel card. Unfortunately, fuel card fraud is always a concern. From unauthorized purchases and card skimming to subtle misuse that goes unnoticed for months, fraud can drain profits faster than rising diesel prices.
Business owners and fleet managers need to understand the signs of fuel card fraud and prevent it before it becomes a costly problem. In this guide, you’ll learn how fuel card fraud happens, its classic warning signs, and how to prevent fraud in your fleet.
Key Takeaways
- Fuel card fraud can happen in subtle ways, from small, repeated transactions to unauthorized use, and it can quietly drain profits if missed early.
- Common fuel card fraud warning signs include unusual fueling times or locations, purchases that exceed tank capacity, repeated declines, and mismatched mileage or trip logs.
- External threats like card skimming and cloning are growing risks for fleets, especially at high-volume fueling stations.
- Trucking companies can reduce fuel card fraud by monitoring fuel usage, setting purchase controls, enforcing a clear company policy, and holding drivers accountable.
- A strong fuel card policy can help prevent fraud or mitigate losses.
What Is Fuel Card Fraud?
A fuel card works like a credit card, but limits purchases to gas and vehicle-related expenses while drivers are on the road. This setup is much less risky than issuing traditional credit cards to drivers, which come with a higher incidence of theft and fraud. Still, fleet card fraud can happen.
Because fuel cards handle significant spending and can encompass multiple vehicles and drivers, they also come with risk. Fleet card fraud happens in many ways, including:
- Pumping more fuel than needed and stealing the extra
- Misusing the card for personal fuel
- Card theft by an outside party
Fuel cards are more secure than cash and credit cards. Also, they don’t require drivers to submit fuel reimbursements, eliminating the annoying repayment process. Trucking companies can benefit from fuel cards, but they need a firm fuel card fraud policy and an eye for suspicious behavior to prevent fraud.
Examples of Fuel Card Fraud
A common type of freight fraud, trucking companies should always be on the lookout for fuel card fraud. Whether it’s accidental misuse or a full-on scam, these behaviors are some of the most common examples of fuel card fraud:
- A driver uses the company fuel card for their personal vehicle, either intentionally or accidentally.
- The card shows frequent or excessive fill-ups that exceed the vehicle’s tank size or that don’t match mileage; sometimes a “fill-up” is logged even when no fuel was dispensed, and the difference is siphoned or sold.
- External theft, such as card-skimming or cloning, is a concern with any card.
Fuel card misuse is rarely dramatic or easy to spot. It typically happens with small, repeated purchases that add up incrementally. These abuses add up over time and eat into your budget.
Fuel Card Fraud Warning Signs
Spotting fuel card fraud isn’t easy, especially if you manage a large fleet with multiple cards. Learn the most common signs of fraud and dig more deeply into any anomalies you find:
Unexpected or Unusual Transactions
Look for purchases outside normal driving hours, far from assigned routes, or at stations a driver doesn’t typically use.
Impossibly High Fueling Activity
Typical signs include fuel volumes that exceed tank capacity, fill-ups that don’t align with mileage, or back-to-back transactions at different stations within minutes.
Suspicious Card Behavior
Tell-tale signs include multiple declines before a successful charge, attempts to buy non-fuel items, or charges on a card marked as lost or inactive.
Driver-Related Inconsistencies
Internal fuel card fraud is always a concern. Look for trip logs that don’t match fuel usage, drivers who avoid providing receipts, or recurring exception alerts linked to the same person.
Skimming or Theft Indicators
Be on alert if you see transactions from stations with known skimming risks. Sudden spikes in unauthorized activity or clusters of driver complaints about card declines at a particular location are also red flags.
How Truckers Can Prevent Fuel Card Fraud
Catching fuel card fraud requires hands-on management and careful analysis. Follow these steps to prevent fuel card fraud in your trucking business.
Monitor Fuel Usage and Driving Habits
The best way to prevent fleet card misuse is to understand what’s normal for your drivers. Using a fuel card provides detailed reporting on fuel purchases, helping you track actual fuel usage against miles driven. Keeping an eye on this data can reveal suspicious patterns and help you reduce fuel card fraud.
Limit Card Use and Set Controls
When applying for a fuel card, look for options that allow you to restrict where and when drivers can fuel up. For example, some cards only allow drivers to refill at designated gas station networks. They aren’t perfect, but these controls make it harder for unauthorized transactions to slip through.
Hold Drivers Accountable
All drivers should know what’s at stake if they misuse a fuel card. They should understand that fuel cards are only for business, and personal use is never allowed. You can hold your team accountable by requiring them to submit receipts, too. If there are any discrepancies or an employee routinely “forgets” to submit receipts, treat that as a performance issue.
Follow Fleet Management Best Practices
Good fleet management practices, such as planning efficient routes and tracking maintenance, can reduce stress on your fuel budget. Not only does this improve semi-truck fuel efficiency, but it also makes unusual or fraudulent patterns much easier to spot.
Enforce a Company Fuel Card Policy
Any trucking company using fuel cards needs a written policy governing their use. Make sure there’s a clear, documented fuel card fraud policy that defines:
- Who can use fuel cards
- When and where they can be used
- What documentation is required (e.g., receipts and trip logs)
- The consequences for misuse
Ask drivers to sign the policy to show they understand the consequences of misuse.
The Importance of Having a Company Fuel Card Policy
Fuel card fraud happens when a company lacks tight controls around its finances and employee behavior. A fuel card policy is the best way to set controls and educate drivers about proper card use. While technology and monitoring systems can help spot fraud, nothing replaces a written policy that outlines expectations, accountability, and procedures. Not only that, but it will also give managers and leaders clear recourse for addressing fraud before it gets out of hand.
A fuel card policy will help you:
- Set clear rules for when and how drivers can use fuel cards
- Define authorized users and vehicle assignments
- Clarify documentation requirements, such as receipts, trip logs, and mileage reporting
- Outline spending limits, station restrictions, and time-of-day limits
- Establish consequences for misuse or confirmed fuel card fraud
- Create a uniform process for reporting suspicious activity, making it easier to act quickly
- Ensure all employees follow the same standards
A policy also protects the business operationally and financially. When everyone understands how to spot fraud, what to do if it occurs, and how to keep the card secure, your risk of fleet card fraud drops dramatically. Plus, it gives trucking companies a framework for training new hires and reinforcing best practices over time.
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In-Summary: Fuel Card Fraud
Fuel cards streamline fleet operations and payments, but they do come with some risks. While they’re more secure than other payment options, like credit cards, you still need guardrails in place to protect your business from fuel card fraud. That starts with understanding the warning signs, taking practical steps on the road, and putting the right systems and controls in place to prevent fuel card fraud before it affects your bottom line.
Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.
