How fleet telematics can help identify fuel card fraud

Fleet managers often have two views of the same journey. One shows what the vehicle did, where it travelled, how it was driven, and how much fuel it used. The other shows what was paid for, where the fuel was purchased, how much was spent, and when the transaction happened.

The challenge is that these insights often sit in separate systems. By connecting fleet telematics with fuel card data, businesses can better understand whether fuel purchases match real vehicle activity, helping improve fuel control, identify unusual transactions, and manage costs more effectively.

What is fleet telematics?

Fleet telematics uses GPS technology, onboard diagnostics, and telecommunications to help businesses understand how their vehicles are being used. 

A telematics system can provide:

• Vehicle location and journey history
• Mileage and vehicle utilisation
• Driver behaviour, including speeding, harsh braking and idling
• Vehicle activity and engine information
• Fuel consumption trends

However, telematics alone does not explain what happened at the pump. To understand whether fuel spending matches actual vehicle activity, businesses need to connect vehicle data with fuel transaction data.

Can fleet telematics identify fuel fraud? 

In short, yes. But fleet telematics alone cannot spotlight every type of fuel fraud. When connected with fuel card data, it can help businesses identify transactions that do not match expected vehicle activity.

Fuel cards provide information such as:

• Date and time of purchase
• Fuel station location
• Fuel type
• Quantity purchased
• Amount spent

Fuel transaction data alone does not always explain whether the purchase matches genuine vehicle activity. A purchase at an approved fuel station may appear legitimate when viewed on its own. But fleet managers may still need to ask:

• Was the vehicle at that location?
• Does the amount of fuel purchased match the vehicle?
• Does the fuel usage align with mileage and vehicle activity? 

How fleet telematics and fuel cards work together

Combining fleet telematics with fuel card data allows fleet managers to compare fuel transactions with actual vehicle activity without manually reviewing separate systems. This can highlight unusual activity and show where further investigation may be needed.

Consider this: 

A vehicle regularly follows similar routes with an expected fuel consumption pattern. Over time, the fleet manager notices fuel purchases have increased, but the vehicle’s mileage and activity remain unchanged. When reviewing fuel card transactions alone, it may not be an obvious issue. But when fuel card data is combined with telematics, the business can identify that fuel purchases were higher than expected, despite no change in mileage or route activity. 

Connected data helps fleet managers identify exceptions and investigate where action is needed.

Four ways fleet telematics can help identify potential fraud

Fuel misuse is not always identified through one suspicious transaction. It is typically discovered by comparing fuel activity with vehicle behavior over time.

1. Identifying fuel purchases when vehicles are not present

One of the clearest signs of potential fuel fraud is when a fuel purchase does not match the vehicle’s location. A driver’s fuel card records a purchase at an approved station for £70, but telematics data shows the vehicle was elsewhere. This creates a clear basis to investigate potential fuel card sharing or unauthorised use. 

2. Identifying fuel purchases that exceed vehicle capacity

Another common indicator is when the amount of fuel purchased exceeds vehicle specifications. If a vehicle with a known 60-litre tank capacity records a significantly higher purchase, it could suggest the fuel card was used to fill another vehicle, a container, or an unauthorised purchase.

3. Identifying fuel usage that does not match vehicle activity 

Higher fuel consumption doesn’t necessarily mean fuel misuse. It can be caused by: 

• Increased mileage
• Excessive idling
• Inefficient driving behaviour
• Vehicle maintenance issues 

By combining fuel card data with fleet telematics such as mileage, routes, and engine hours, fleets can understand whether fuel consumption matches actual vehicle usage.

4. Identifying inaccurate mileage and fuel expense claims 

Fuel misuse is not always linked to stolen cards or unusual forecourt transactions. As fuel costs rise, businesses face challenges with inaccurate mileage reporting. Research involving 2,000 UK drivers found that 19% of employees admitted they were more likely to exaggerate fuel expenses as fuel costs rise. 

Comparing reported expense claims against fuel card purchase timestamps and telematics journey logs helps businesses identify discrepancies between claimed mileage, actual vehicle movements, and fuel card spend.

Benefits of integrating fleet telematics with fuel cards 

Preventing fuel misuse is one reason businesses connect telematics and fuel card data.

The combined information can also help fleets:

• Make better fleet decisions: Use connected data to guide maintenance, vehicle replacement and planning
• Improve fuel efficiency: Understand fuel spend alongside mileage and vehicle activity to identify opportunities to reduce costs
• Measure cost per mile: Link fuel spend with actual vehicle usage to better understand operating costs
• Support driver coaching: Connect driving behaviour with fuel consumption to provide more relevant feedback
• Make better fleet decisions: Use connected data to guide maintenance, vehicle replacement and planning

The future of fuel management is connected data

Fuel fraud is rarely obvious from a single transaction. The real value comes from seeing the wider picture and understanding whether fuel spend makes sense alongside what the vehicle was actually doing.

WEX fuel cards provide the transaction data fleet managers need to understand where, when and how much fuel is being purchased. Combined with fleet telematics, this information can help identify discrepancies, investigate potential misuse and take action where needed.

Explore WEX’s fleet solutions to learn more fleet payment solutions and fuel cards tailored for your business.