By Fleet Management Weekly Staff
December 3, 2025
One shocking truth about fraud today is that you’re losing 5 to 20 cents of every dollar spent on your fleet’s operations to internal theft, external skimming, and misallocation. That’s not an accident – it’s the built-in vulnerability of open-loop payment systems.
William Fitzgerald, WEX
William Fitzgerald is the vice president of anti-financial crimes at WEX, a leading provider of payment solutions, where he oversees the development and implementation of fraud strategies and policies across the organization. He is more than qualified for the responsibility, with over twenty years experience leading fraud operations and incident response teams in various industries, including financial services, payment cards, and tax products.
We spoke with Fitzgerald, who explains why the future of fraud prevention isn’t about catching thieves later; it’s about making sure the crime can’t happen in the first place, using closed-loop payment networks, real-time data, and AI-driven intelligence.
Q: Fleet fraud seems to be escalating across the industry. What’s driving that increase?
William Fitzgerald:
We’re seeing a convergence of internal misuse and external attacks that’s making fraud more complex than ever. Internally, drivers might use fleet cards to fill personal vehicles or make non-fuel purchases. Externally, we’re dealing with cloning, skimming, and other sophisticated forms of theft.
For a typical fleet, that can add up quickly. Studies show that five to ten percent of annual fuel consumption is lost to theft or misallocation, and total losses across operations can reach 20% of a fleet’s budget. When you’re running on tight margins, that’s a serious hit to profitability.
Fraud also drains time and focus. Instead of managing the fleet, managers are spending hours combing through receipts, reconciling transactions, and disputing charges. It’s not sustainable, which is why technology and data-driven insight have become essential tools in staying ahead of these threats.
Q: How does a closed-loop network differ from traditional open-loop systems?
Fitzgerald: An open-loop network, like a typical bank or credit card, passes transactions through multiple intermediaries. Each step can strip away detail. You might see only “Fuel Purchase – $150” without knowing the fuel type, number of gallons, or who made the purchase.
A closed-loop network, like WEX’s, is purpose-built for fleets. We control the entire transaction ecosystem – the card issuer, the processor, and the merchant network. That means every swipe captures complete, line-item data in real time.
You see everything: fuel type, quantity, price per gallon, odometer reading, vehicle ID, driver ID, even pump number. That level of transparency enables managers to pinpoint issues immediately and set controls that stop fraud before it happens.
Q: Data is the “currency of control” for fleet managers. What does that mean in practical terms?
Fitzgerald: Fleet management used to rely on paper receipts and manual logs. Today, success depends on access to accurate, real-time transaction data. That data tells the story behind every purchase: who made it, where, when, and what exactly was bought.
When managers have that level of visibility, they can spot anomalies early. Maybe a driver’s fuel efficiency suddenly drops, or a purchase happens outside the normal route. Those aren’t just numbers; they are early warnings. The stronger and more detailed the data, the faster managers can respond.
That’s what makes closed-loop systems so powerful. They capture data at the deepest level, providing the context necessary to help separate legitimate use from potential fraud.
Q: What kind of controls does that visibility make possible?
Fitzgerald: Closed-loop systems allow for granular spending rules. Fleet managers can block specific purchase categories, for instance, such as preventing in-store item expenditures even when a driver pays inside or set limits on fuel volume, time of day, or location.
You also get real-time alerts for suspicious activity: double fill-ups in a short window, vehicles fueling outside their territory, or transactions that don’t match route data. That turns fraud prevention from a reactive process into a proactive one. It’s the difference between discovering a problem days later and stopping it in the moment.
Q: Artificial intelligence and telematics are transforming how fleets operate. How are they influencing fraud detection?
Fitzgerald: AI is a game changer. Our systems analyze millions of transactions across our closed-loop network every day. Using machine learning, we identify normal behavioral patterns – how often drivers fuel, where they go, how much they spend – and flag anything that deviates from those norms in real time.
When you layer telematics data on top of that, the accuracy gets even sharper. If a card is used at a location but telematics shows the vehicle is 50 miles away, we know something’s wrong. AI and telematics together create a feedback loop that gets smarter with every transaction.
Over one recent sixty-day period WEX achieved a fraud rate of less than one in 12,000 transactions, essentially protecting 99.99% of all activity across our fleet customers.
Q: What advice would you give fleet managers evaluating fraud protection partners?
Fitzgerald: First, prioritize data quality and access. Make sure your provider can give you full line-item visibility, not just total amounts.
Second, look for a purpose-built system. Many providers repurpose consumer banking technology for fleets, but the challenges are completely different. You need a network designed around fleet operations with fraud controls and insights that match your business.
Finally, think about partnership. Fraud prevention isn’t a set-and-forget feature, it’s a collaboration. At WEX, our dedicated fraud team works with customers to interpret data, adjust controls, and evolve strategies as new threats emerge. That shared expertise is what keeps fleets protected and on the road.
For more information about fraud protection at WEX, please visit wexinc.com.
