Fuel Card cloning is on the rise – What can you do to protect yourself?
04 October 2022
Does your company use fuel cards? If so, then you may be at risk of being the victim of fuel card fraud and suffering the costs involved. Fuel Card cloning is on the rise.
There has been a recent increase in fuel cards being cloned by fraudsters, resulting in operators becoming the victims of fraud and theft. Stolen data is used to create copied fuel cards, often designed to be used to fill up other vehicles with the charges going to the original card holder. This fraudulent activity can cause significant costs which are difficult to recover.
What can you do?
Firstly, read the terms and conditions of your agreement with your fuel card provider. Particularly, read the wording of the liability clause. It is imperative that you understand who is liable for costs in instances of theft and third-party fraud. Most of the terms and conditions that we review, exclude liability of the fuel card provider, and maintain that the card holder is liable for costs in the event of theft and third-party fraud.
The wording of the terms and conditions can be strict on the card holder, and the operator risks being faced with the cost of stolen fuel in which they obtained no benefit, and no way of recouping the money.
In any event, significant importance should be placed on ensuring that you have appropriate company-wide safety measures in place to limit your exposure to theft and fraudulent behaviour. Each fuel card company is different, therefore, to incorporate the most appropriate procedure, contact should be made to your specific fuel card provider to determine what best safeguards their fuel card from cloning and theft.
One essential consideration is ensuring that all drivers are aware that they need to protect their pin every time it is entered, even when no one is around. Fraudsters will use advanced technology to clone cards and will install small cameras to capture pin numbers.
Furthermore, you should make regular checks to your fuel card transactions. Many fuel card companies provide an online account, on which you can keep track on real time data on every purchase made with each of your fuel cards. If you notice any suspicious or irregular transactions, you should flag this up to your fuel card provider immediately.
If you find yourself in a situation where your fuel card has been cloned and used to buy fuel for another vehicle and you are liable for the costs, you should check the wording of your insurance policy to see if you are covered in circumstances of theft or third-party fraud.
If you are unsure on your fraudulent exposure under the terms of your fuel card agreement or insurance policy, or you have been the victim of fuel card fraud and would like some assistance, then please contact a member of our commercial litigation team on 01254 828300. Find out more about our team here.
