Study: Price Increases Cause Mileage Report Inflation

Oct 06, 2011
Employee fraud is a huge problem for fleets, especially when fuel costs are so high. Now, a study has been released that shows yet another instance of increased fraudulent behavior among fleet drivers. Check out the story, via Business Fleet:

A new study from workforce management company Natural Insight shows a strong correlation between rising gas prices and employees over-reporting mileage in expense reports.

During a six-month period, Natural Insight found employee over-reporting of mileage increased to as much as 32 percent over the actual number of miles traveled as gas prices reached their peak. Even when gas prices were at their lowest level during the six-month period, employees still over-reported mileage by 18 percent... On average, over-reporting of mileage ran at 24 percent throughout the study period.

"While businesses are supportive of proper worker expense compensation, over-reporting on expense reports is more common than we expected to see and certainly presents a large opportunity for cost reduction if properly identified. Accuracy in reporting of mileage is the issue here. As actual fuel costs rise and fall, corporate reimbursement rates can work for and against the worker since guidelines are typically set on an annual basis," said Stefan Midford, President and CEO of Natural Insight.


Keeping your employees honest doesn’t have to be a confrontation or micromanaging, but making sure your drivers stay honest is important to your business’ bottom line. When you use a fleet fuel management system from FleetCards USA, our powerful reporting tools and controls make it impossible for your drivers to fudge numbers and misreport. Visit our main site at www.fleetcardsusa.com for more information.

Photo courtesy of Paulo Ordoveza and re-used under the Creative Commons license.