What is Fuel fraud?
Fuel fraud is the act of committing fraud and deceit related to fuel card fraud and fuel theft. Fuel fraud can include tactics like fleet drivers filling non-approved vehicles, inflating mileage figures for reclaims, purchasing personal items with fuel cards, sharing fuel cards, and fuel syphoning. In addition, fuel card details might be stolen or intercepted by external fraudsters, and used by them.
The Impact of Fuel Fraud
While there are no clear numbers about the cost of fuel fraud, it was estimated a few years ago to cost over $500 million. In addition, the actions required to combat fraud, through training, identifying suspicious transactions, issuing new cards to replace intercepted ones, etc., are all resource-intensive and time-consuming. As a result, companies are losing large amounts of money and resources, which is negatively impacting their bottom line.
Using AI to Prevent Fuel Fraud
Fleets and fueling retailers often implement manual solutions for combating fraud. In addition, digital transformation can also be leveraged to detect threats in a way that enables quick responses. This can be done by implementing AI (Artificial Intelligence) and ML (Machine Learning) algorithms into fraud prevention systems.
AI and ML algorithms quickly analyze historical and real-time fueling transaction data to identify anomalies and suspicious behaviours, no matter how sophisticated the fraud or complex the data. This analysis is done in milliseconds, enabling fleets and fuel retailers to take action in real-time and mitigate the risk before it impacts the company
In addition to preventing fraud, these AI and ML methods reduce fleet and station operational costs, improve customer experience and enable compliance to regulations. AI detection is considered more accurate and with fewer false positives, making it a trustworthy fraud prevention solution.
Picafuel’s Innovative Fraud Prevention
Picafuel provides the fueling industry with an AI-driven mobile app and software analytics engine that helps fuel retailers and fleets prevent fraud. Through three layers of authentication and AI anomaly detection, Picafuel reduces the fraud risk for fleets and fuel retailers.
How it works:
First, the transaction is authenticated using Picafuel’s proprietary 3 Layer Authentication: driver identification through mobile app registration, vehicle recognition and odometer reading through computer vision, and station validation using GPS location.
Then, Picafuel tracks transactions in real-time through AI based both on business rules and also by identifying consumption anomalies.
Finally, suspicious activities are alerted about or blocked completely, ensuring fleet and station security and safety.
Picafuel, a patented novel technology for vehicle authentication and identification, provides an all-in-one solution for fuel retailers, from fraud prevention to enterprise software to customer engagement. By using Picafuel, fuel retailers no longer need point solutions and devices for managing customer interactions.
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