Success in any business today is the ability to take control of cost. One of the single biggest cost drivers to a fleet operator is fuel. Any asset that consumes fuel needs hands on transaction by transaction management and control measures to ensure cost effectiveness.
SQAS-SA Fuel Management Solutions has developed a Fuel Fraud/Theft/Abuse Detection and Fuel Management System that, with every fuel transaction processed, identifies potential fuel/fraud/theft extremely accurately and then quantifies these losses in potential monetary, liter and percentage losses.
These calculations eliminate a “justification for excessive consumption” mind-set and emphasize the financial impact fraud, theft and abuse has on the bottom line.
When combined with vehicle telematics systems data analyses, we are further able to distinguish between excessive fuel usage based on operational application and driver abuse (speeding, excess idling, harsh braking and operational application (stop/start movements) and actual potential fuel fraud/theft, ensuring that focus is placed on addressing the fraud/theft/abuse factors with conviction and thus reducing losses at a much faster rate.
FEATURES
Calculate external fuel data from various industry fuel sources, including all fleet card data, automated fuel systems, home base facilities, manually captured data etc.
Identifies and highlight various fuel management associated potential anomalies, inefficiencies and exceptions which points to potential fraud/theft/abuse and/or high levels of vehicle operational application.
- Excessive fuel consumption
- Low consumption (very common when tanks are not filled to capacity)
- Vehicle manufacturer’s tank capacity exceeded
- Static/Faulty odometer readings
- Suspect odometer readings (very common with clone card transactions and odometer readings recorded incorrectly)
- Static odometer reading
- Multiple same days refuels
- Weekend refuels (for vehicles that are not allowed or supposed to fill over weekends)
- Possible cloned cards
- Possible calculated fills (Drivers calculating fuel based on km traveled to hide potential fraud/theft/abuse)
VEHICLE TRACKING DATA (VERY CRUCIAL TO VERIFY DRIVER ABUSE)
If tracking data is provided we calculate the following information to determine operational impact and driver abuse.
- Verify the distance between refuels by comparing the distance traveled between fuel station locations vs refueling opening and closing odometer readings.
- Verify that vehicles was indeed at the fuel stations reflected on the fuel receipts
- Calculate engine running time, total drive time and total idle time in percentages to determine the percentage idle time vs drive time and the impact thereof on the fuel consumption calculated. Industry standards and norms are used to calculate the impact, in liter value, of idling time.
- Calculate the number of over speeds
- Calculate the number of harsh braking’s (If feature is activated on the tracking system)
- Calculate the number of trips between 1 and 10 km and determine the percentage of these trips against the total number of trips traveled. Trip distances are calculated between ignition on and off.
- Driver scorecards (If feature is available)
The information is then used to justify the excessive consumption and/or to report driver abuse as the reason for the excessive consumption.
FRAUD, THEFT AND DRIVER ABUSE DETECTION
There are various methods used to commit fuel fraud/theft. Some of the most common ones are;
- Fleet/Fuel card transactions are inflated with additional liters and the total amount amended accordingly. The “excessive” money is then split between colluding parties (Driver, Pump Attendant and Cashier)
- Fleet/Fuel card is swiped but no fuel dispensed to the vehicle (Commonly referred to as “ATM” withdrawals).
- Fleet/Fuel cards left with pump attendants and used to process other vehicles’ cash transactions as card transactions. The cash is then split at a later stage between the colluding parties.
- Cloned Cards (Used extensively until detected and reported)
- Stolen Cards (Used extensively until detected and reported)
- Side Fueling (Vehicle and container is filled and billed as one transaction)
- Multiple vehicle fills (Own vehicle and another cash vehicle on the forecourts is refueled and both transactions are processed using your company fleet/fuel card)
- Private vehicle refuels processed as company refuels (90% of perpetrators are employees)
- Fuel pump calibration tampered with where the fuel dispensed to the tank and the fuel on the pump meter reading differs (Less fuel than indicated dispensed)
- Continuous pump activity where your vehicle fills up right after a previous vehicle and the pump kept active and the transactions combined as one. This is very popular where the “previous “vehicle refuel is paid for in cash, which is then split between the colluding parties.
- Fuel siphoning (Various methods)
E-MAIL NOTIFICATIONS
Once any anomalies and/or potential fraud/theft/abuse are detected an e-mail notifications is raised by us, informing you thereof. There are various notifications that are raised, including but not limited to;
- Excessive fuel consumption
- Suspect Low consumption
- Tank capacity exceeded
- Static/Faulty odometer reading
- Suspect odometer readings
- Static odometer reading
- Multiple same days refuels
- Weekend refuels
- Possible cloned card
- Possible calculated fills
- Various comment mails providing you with analyses results
Every notification is supplemented with data extracts, a clear explanation for the notification type and a summary of the tracking analyses done.
FUEL MANAGEMENT TRAINING
A two day detailed and extensive fuel management and fuel fraud/theft/abuse investigation training course for managers, risk controllers, operations controllers and investigators
- The responsibilities of employers and employees in effective fuel management
- How to drive down fuel cost
- The impact of fuel fraud, theft and abuse on profitability using vehicle cost schedules
- The factors that impact on fuel management and how to best manage them
- Implement policies, procedures and strategies to reduce fuel consumption
- Use of vehicle technology to improve operational efficiency
- Vehicle pre-departure checks
- Vehicle refuelling checks, home base and on-road
- How to calculate the different types of consumption to determine the impact of excessive fuel consumption
- How to calculate consumption and cost per kilometre variables
- How to interpret excessive fuel consumption
- How to manage a single and/or multiple fuel data sources in a consolidated environment
How to understand the following fuel related anomalies
- A suspect low odometer reading
- A suspect high odometer reading
- Suspect low consumption
- Suspect high consumption
- Tank capacity exceeded
- Potential cloned card transactions
- Static and/or faulty odometer readings
- Calculated Fills
Fuel Management reporting
- Setting up a reporting structure
- Using Excel as the preferred reporting tool
- Cloud based reporting with sharing options
- Reports include;
- Summary consumption reports
- Detailed consumption reports
- Fuel usage per oil company report
- Fuel usage per fuel station report
- Top Loss report
- Top cost saving report
- Exception report
- Various Consumption comparison per vehicle make and model
- CPK comparison per vehicle make and model
- Comparison Reporting
- Communicating suspect transactions with fuel stations/suppliers
- Communicating irregular transactions with drivers
- Different methods of fuel fraud, theft and abuse
- The impact of fuel fraud, theft and abuse
Investigating fuel fraud, theft and abuse, including;
- How fuel pumps work
- How fuel station forecourt operational systems work
- Transaction flow on forecourts
- Investigative process, including;
- Setting up a case register
- Preparing a case docket
- Keeping an investigation diary
- Chronically investigating process flow
- Taking of statements
- Interviewing of potential suspects, including drivers and forecourts staff
- Filing process of all obtained statements & documentation
- Liaison with S.A. Police and Prosecuting Authority when considering criminal prosecution
- Preparation for disciplinary hearings and/or criminal prosecution
