Why fleet managers must embrace technology to protect their fleet spend

Fraud, misuse and the bottom line

For fleet managers, fleet card fraud and employee misuse aren’t just minor inconveniences – they’re ticking financial time bombs that drain company resources and impact the bottom line. Fleet managers report losing up to 22% of their fleet spending on fraud and misuse. Depending on the fleet size, these losses can cost their companies hundreds of thousand of dollars, and in some cases, even upwards of millions of dollars annually.

Moreover, while 44% of fleet managers know these activities impact their business, they don’t know how to prevent them. But new technology is emerging to help your company combat fraud and misuse, and you may find some fleet efficiencies and fleet card savings along the way. As fleet managers focus on reducing financial losses and inefficiencies, here are some actionable strategies for reducing the risk of fraud and misuse.

The risks to your fleet card program

Before you can attempt to tamp down on fraud and misuse, it’s critical to understand each issue for what it is – and what it’s not. Let’s start with fraud, which refers to the external, illegal use of a fleet card by a third party who is not a company employee. For example, fleet card fraud may entail a criminal using a stolen fleet card for their own purposes. But while fleet cards often require a PIN that only an employee of your company knows, many criminal organizations can illegally obtain card numbers via a card skimmer at a gas pump or store. Brand required us to replace the text that’s crossed out below with the following: Point-of-sale skimming rose by 16% in 2025, and fraudsters targeted retail outlets and gas stations. Cloned card fraud also increased by 24%. These trends show a shift towards high-tech skimming methods.

Employee misuse is different from fraud – and far more common. In these cases, employees use a company-provided card to pay for non-business-related personal purchases. One survey shows that 62% of corporate employees are aware of company credit cards being used for non-business-related expenses. In the realm of fleet cards, that may look like filling up the gas tank of a personal vehicle or using the card to buy gas or items at a convenience store for family members. Misuse typically isn’t considered fraud because the employee has access to the company card, but it does cost companies. They end up with additional expenses unrelated to their operations and likely not in the budget.

Understanding fraud versus misuse

Fraud and misuse in fleet card programs differ significantly in both their perpetrators and their intentions. Fraud is committed by criminals or third parties who are external to the company. These individuals steal or illegally obtain card information to make unauthorized purchases, with a clear malicious and criminal intent. In contrast, misuse involves internal employees who have been issued a fleet card by their employer. These employees use the card for personal purchases or gain, which may be done purposefully or simply out of misunderstanding. While both issues result in financial losses, understanding who is responsible and why they act is crucial for developing effective prevention strategies.

The evolving fraud landscape

As fraudsters employ new technology and strategies to improve their success, the fraud landscape is constantly changing. As mentioned, card skimmers are currently one of the most common forms of fraud. However, the bad actors behind these criminal activities are always finding new and better ways to steal information – and they often leverage technology to increase the scale and efficiency of their operations. For instance, some crime organizations now use hidden cameras at gas stations to help capture PIN information as drivers input it. Other instances of reported fleet card or fleet-related fraud include:

• Card not present fraud: This occurs when criminals use a stolen card number to make purchases, often online. The purchases may be related to transportation or vehicles.
• Vehicle cloning: In these cases, fraudsters copy a vehicle’s registration number and then use the assigned fleet card to create a duplicate vehicle.
• Site collusion: This occurs when a fueling site colludes with drivers to charge more for fuel than they should, and the drivers use the difference to purchase things for themselves. Employees may be involved in this type of fraud, but it goes well beyond misuse.
• Identity and application fraud: Like typical identity fraud, criminals apply for cards on behalf of the business and then use the cards for their own purposes.

Fraud trends to watch

• Card skimming
• Stolen PIN numbers
• Card not present fraud
• Vehicle cloning
• Identity and application fraud

The challenge of employee misuse

As noted, fraud is perpetuated by criminals outside of the company. However, card misuse and abuse are internal problems that stem from how employees use the fleet cards assigned to them. The misuse is often straightforward and may not register as a significant issue to employees in terms of individual transaction amounts.

For example, using an employee fleet card to top off a personal vehicle or make a few purchases at the gas station may equate to a few extra dollars. However, these incidents add up and can cost companies significantly over time. This is especially true if fleet card misuse is widespread among employees across a fleet of several hundred or even thousands of vehicles.

Identifying employee misuse can be difficult. The incidents may occur in conjunction with legitimate expenses or be individual amounts that don’t register an in-depth examination. On the other hand, asking employees to clear every expense introduces extra work and may prevent them from completing their jobs. This is where innovative technology like telematics can make a difference.

What is telematics?

• Telematics is a technology that collects data from vehicles using GPS and sensors
• Provides insights into driver behavior and vehicle performance, including fuel efficiency
• Can be used to both improve fleet management and combat fraud and misuse

Telematics uses sensors and other location devices in vehicles to provide companies with insights into driver behavior and vehicle performance. For example, telematics can use this data to help ensure that an employee is using the company fleet card to fill up a company vehicle, flag unusual activity or driver behavior that’s impacting fuel efficiency. The technology can help spot misuse and offer insights that improve vehicle and driver performance.

Fleet card fraud and misuse are an ever-present threat. Fortunately, technology can help mitigate the risk and optimize fleet operations for improved performance. The right fleet management platform and mobile app can turn transparency, risk discipline and focused insight into working solutions you can put on the road.

Contact us to learn what Voyager can do for your fleet managers.