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Fraud is on the rise. The Federal Trade Commission released new data in March of 2025 that consumers reported losing more than $12.5 billion to fraud in 2024. This represents a 25% increase over losses reported in 2023.
Over the last several years, fraud has become more and more difficult to detect. Phishing content used to be terribly written and obvious in its nefarious origins. Due to the increased use of generative AI, what used to be transparent and detectable signs of fraud are no longer so apparent. Bad actors have become more sophisticated and their content is much more believable as a result.
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Now that we know fraud is becoming more prevalent, the question becomes: What do we do about it and how can you protect your business from this insidious, predatorial behavior?
Most fraudsters focus on accessing cash, credit, or goods to resell for a profit. This behavior can harm your business and impact your bottom line. In this article, we review the most common forms of credit card fraud and how to prevent them from doing you harm.
Transaction fraud includes:
A common form of fuel card fraud is when a fraudster obtains card data through a skimming device. They install hidden devices on fuel pumps or point-of-sale terminals to capture credit card information (like card number and PIN) from users when they swipe. These bad actors “skim” the data off the card without a driver’s knowledge. They then use that information to make fraudulent purchases.
Thieves find a lost card or steal a company card and use the card for illegal purchases.
First-party fraud is both the most obvious to detect and the most difficult to prosecute. Anytime an authorized representative makes a transaction using their own identity to commit fraud, it’s called first-party fraud. What makes this fraud particularly onerous is that the user perpetrating the fraud can easily authenticate the transactions they are making. This is because they are the person authorized to use the credit. Even if an alert pops up prompting them to manually authorize the purchase, they’ll simply do so and continue with the fraudulent activity undeterred.
Here are a few examples of how first-party fraud could look in practice:
First-party fraud experiences uptick during economic downturns.
Account takeover is one type of Identity theft fraud. This involves a cybercriminal accessing a user’s online accounts. The criminal obtains login credentials through fraudulent means, using them to illegally access another person’s cash, products, and personal account information. If there is one app or website the victim has access to that is improperly secured, the floodgates open for the cybercriminal to wend their way through connecting paths to get to other accounts and do a clean sweep of assets.
Account takeover has tentacles that reach into layer after layer of accounts causing mayhem for the victim. This type of fraud is difficult to counteract and has far-reaching implications.
Another common form of fraud is application fraud. This is when a fraudster applies for credit using stolen or inaccurate information.
Application fraud and first-party fraud overlap. This is because application fraud often involves legitimate consumers using their own identity to commit fraud. These types of fraud are the hardest to detect because they involve the use of a true, authenticated identity.
As phishing and other types of credit card fraud increase in sophistication, here are some actions to take to prevent damage to your business:
Among these simple best practices, perhaps the most important thing you can do to avoid card fraud is educate your employees on how to be vigilant and give them the agency to decide on the fly what might be fraudulent and what to do to prevent further action from fraudsters.
Your biggest defense against fraud is your people. According to the 2024 Association of Fraud Examiners (ACFE) Report to the Nations, the median loss businesses experience due to fraud is $145,000, and fraud is estimated to impact about 5% of revenues annually. If you build a culture of education, trust, and agency, your staff will have the power to know fraud when they see it and take the appropriate steps to mitigate that activity and avoid costly impacts.
Our research shows that newer employees are better at fraud prevention and identifying socially engineered communications than veteran employees. This is likely due to fraud prevention training during onboarding that’s still fresh in their minds. Veteran employees either never received such training or could benefit from a refresher course. The best way to solve this is to make annual, mandatory fraud training part of your business plan and an expectation and priority for your staff. There is great value in constantly retraining and providing fresh information to your entire organization.
Additionally, the most secure environments empower staff to say “no” to fraudsters. Cultures where staff are most vulnerable perpetuate a fear that saying “no” to a perpetrator will mean job loss or other consequences. Fraudsters are manipulative and use menacing tactics to convert your staff, sometimes even threatening that they will lose their jobs if they don’t do what they are told. This forces your staff to take actions that allow criminals to infiltrate your systems. If you empower your staff to be cautious and not easily manipulated, you can avoid this kind of fraud impacting your business.
Here are some basic rules to teach your staff to avoid harmful phishing schemes:
A currently surging fraud trend involves receiving AI-generated phishing emails from illegitimate sources. These emails – circulated globally and crafted in a more sophisticated language – are harder to detect. It’s important to remind your employees who handle vendors for your business that WEX will never ask for login credentials to your fuel card account over email. If one of your staff inadvertently responds to a phishing email and provides credentials to a cybercriminal, they should call WEX’s customer service number immediately (printed on the back of your WEX fleet fuel cards). Alert us that your business has been compromised, and we will take the necessary steps to mitigate any attempts at fraud on your account.
The following suggestions and procedures can also help protect your business from fraud:
One way economic downturns can impact business norms is with increases in fraud, and preventing fraud is all about having the right systems in place in advance of an attack. A fleet card program that gives you visibility, control, and built-in fraud protection is one of the most effective ways to avoid fraudster threats to your business.
With WEX, you get:
If you’re actively looking for ways to reduce fraud and gain visibility into your fuel spend, the right partner can make all the difference. Smart fraud prevention uses data to predict and prevent issues, and keeps your business moving and your spend right where you want it.
All fleet cards are not the same, and different types of fuel cards suit the needs of different kinds and sizes of businesses. View WEX’s fleet card comparison chart to see which fleet fuel card is right for you.
WEX speaks the language of small business operators. Whether you’re looking to modernize your insight and reporting efforts, save on fuel costs or take advantage of the latest GPS tracking technologies, WEX offers solutions to simplify the business of running a business. To learn more about WEX, a dynamic and nimble global organization, please visit our About WEX page.
Learn more on how to better manage your small business:
Sources:
The Federal Trade Commission
Infosecurity Magazine
National Association of Fraud Examiners
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