Most fleet managers know fuel fraud is a risk, but what often flies under the radar is just how much more frequent misuse occurs. According to Shell Fleet Solutions, fleets lose an estimated two to five percent of their annual fuel spend to misuse—often due to everyday behaviors like using premium fuel unnecessarily, filling personal vehicles, or card sharing.
While external fraud—such as card skimming or theft—can result in large, high-impact incidents, Shell reports that misuse accounts for approximately 80 percent of all fuel-related incidents.
“Almost every fleet manager will say, ‘yeah, I know this stuff happens.’ But they don’t always get just how prevalent and costly this problem is,” says Cole Metcalf, Key Account Manager, Shell Fleet Solutions.
The good news? With the right tools, policies, and real-time visibility, both fraud and misuse can be detected early, contained quickly, and in many cases, prevented altogether. What can fleet managers do to take back control and lower costs? It starts with visibility, policy, and a proactive approach to security.
KNOW WHAT YOU’RE UP AGAINST
First, it’s important to define these two main challenges.
- Fraud is typically external and criminal. It’s often the result of stolen credentials or “white plastic” schemes where cards are skimmed at pumps and then cloned cards are used to make unauthorized purchases. While less frequent than misuse, one incident alone can add up quickly, sometimes reaching $60,000 to $80,000.
- Misuse, by contrast, is usually internal, behavioral, and unintentional. It might include unauthorized purchases, fueling a personal vehicle, using premium fuel for a standard engine, or continued card use after an employee has left the company. While it may seem less severe than fraud, its persistence and frequency can lead to major financial impact over time.
While fraud may grab headlines, misuse is the more common—and more persistent—threat. It’s often subtle, incremental, and undetected until patterns emerge. Together, these risks are ongoing challenges for fleet managers—and a major opportunity to improve cost control when addressed effectively.
UNDERSTAND WHAT MAKES MISUSE HARD TO CATCH
The reason fraud and misuse often remain undetected is twofold: fleet managers underestimate its cost, and many lack the time and visibility to monitor fuel activity at scale. Depending on the size of your fleet, you may oversee hundreds—or even thousands—of transactions every week.
“Juggling so much every day, it’s hard to find time to think about this fuel problem, time to design policies about it, time to monitor purchases, and time to take action to stop it,” says Chris Nolan, Shell.
Another obstacle? Lack of visibility. Without access to Level III transaction data—including driver ID, fuel type, location, and timestamp—it’s difficult to distinguish between routine purchases and red flags. The more vehicles in the fleet, the more transactions—and the harder it becomes to monitor them all manually.
Even when the data is available, it’s not always used effectively. Some managers may be hesitant to adopt digital tools or assume generic purchase reports are enough. Without data-backed controls and alerts, misuse often goes unchecked until it becomes a pattern.
USE POLICY AS YOUR FIRST LINE OF DEFENSE
The first—and often most overlooked—step in fraud prevention is a clear, enforced fuel policy. A solid policy sets expectations, reduces confusion, and empowers managers to take corrective action when needed.
Key elements of strong fuel policies include:
- Purchase caps by fuel type, dollar amount, or time of day;
- Restrictions on PIN sharing or card transfers between drivers;
- Guidelines for acceptable fuel types and grades per vehicle;
- Required reporting of lost, stolen, or compromised cards; and,
- Regular communication and training to reinforce compliance.
Most importantly, policies should be clearly communicated during card issuance and reinforced regularly. Many instances of misuse are not malicious—they’re the result of unclear expectations or lack of training. A simple onboarding process, combined with regular reminders, can prevent repeat violations.
COMBINE POLICY WITH CONTROLS
A strong policy is only as good as the tools that support it. That’s where digital controls, alerts, and reporting systems come in.
For example, the Shell Card gives fleet managers the ability to:
- Restrict purchases by product type, location, or time;
- Monitor and respond to suspicious activity in real time; and,
- Shut down or reassign cards instantly via Shell Account Manager Online.
Digital monitoring is no longer a “nice to have.” It’s essential for fleets trying to reduce total cost of ownership (TCO) and protect margins. These tools provide the visibility needed to reduce risk, simplify compliance, and—perhaps most importantly—give managers the power to act before problems escalate.
MONITOR FOR RED FLAGS
Analytics platforms use AI to flag suspicious activity based on historical behavior and benchmarking. It can spot outliers, flag excessive usage, and even identify when drivers fuel up outside normal business hours.
Some of the tell-tale signs of fleet card fraud include:
- One card used to fill multiple vehicles;
- Wrong card is used for the wrong vehicle;
- Fuel purchases that exceed a vehicle’s tank capacity;
- Transactions occurring far outside normal operating geography;
- Fuel type mismatches or excessive use of premium fuel; and,
- Multiple transactions in a short time frame.
With proper tools, these anomalies are flagged automatically, saving managers time and giving them the chance to act before a pattern becomes a problem.
WHY PREVENTION PAYS
Security isn’t just about stopping fraud. It’s about protecting your budget, streamlining your operations, and enabling smarter decisions. The benefits go beyond dollars and cents. Fuel card programs that combine smart controls and clear policies also reduce administrative burden, improve compliance, and provide greater peace of mind.
Fleets that take a proactive approach typically see:
- Lower TCO over time, as fuel spend is optimized;
- Improved compliance, thanks to built-in controls and policy alignment;
- Reduced risk exposure, especially with contactless and virtual card options; and,
- More efficient use of time, with less manual oversight required.
TIME TO ACT IS NOW
The reality is fraud and misuse are not rare, isolated events—they’re ongoing risks that require ongoing attention. However, with the right combination of policy, technology, and support, they are also highly manageable.
Start with a policy. Back it up with smart tools. Take time to review your data before misuse drains your fuel spend. From real-time alerts to driver education, small changes can drive major results. The dollars you save on fuel fraud today can be reinvested in your drivers, your vehicles, and your fleet’s future.
about the author
Mohamad Kabbani is head of Shell Fleet Solutions US. Shell Fleet Solutions provides connected tools, expert insights, and long-term partnerships to help you lead with confidence. Whether you’re tracking costs, tightening controls, or building your digital toolbox, you don’t have to do it in isolation.
