The OIG used data analytics to identify offices with a surge of potentially fraudulent Voyager credit card activity. We identified 128 potentially fraudulent fuel transactions totaling $7,199, made primarily in Florida with a Voyager card assigned to the Southeast (SE) Austin Station, between January 1 and July 31, 2017.
U.S. Bank manages the Voyager Fleet Systems credit card program for the U.S. Postal Service, and actively monitors transactions to identify potentially fraudulent use of credit cards.
The OIG’s Office of Investigations (OI) is included on notices from U.S. Bank to the Postal Service when fraud is suspected and when U.S. Bank has accepted a fraud dispute claim filed by the Postal Service. As a result of the volume of notifications related to Voyager cards assigned to the Austin, TX, area, OI contacted U.S. Bank and confirmed there was a surge in fraudulent Voyager credit card activity in the area. OI suspected that data copied from Voyager cards issued to the Southeast Austin, TX, Station had been duplicated, with the counterfeit copies used primarily for purchases at Florida gas stations.
Every Postal Service-owned vehicle is assigned a Voyager card. The card is used to pay for fuel, oil, and routine vehicle maintenance. Each month, site managers are responsible for reconciling the Voyager card transactions identified as high-risk, such as purchases that exceed the fuel purchase limit.
The objective of this audit was to determine whether internal controls are in place and effective over the reconciliation of Voyager card transactions for detecting and disputing potentially fraudulent activity at the Southeast Austin Station.
What the OIG Found
Internal controls over the reconciliation of Voyager card transactions for detecting and disputing potentially fraudulent activity needed improvement.
Specifically, management did not adequately review Voyager card transaction reports to identify and dispute suspicious transactions. In addition, Voyager card receipts, reconciliation exception reports, and disputed transactions were not always kept on file.
This occurred because the station had numerous detailed managers rotating in and out. These managers did not provide adequate oversight to ensure Postal Service policy was consistently followed regarding reconciling monthly reports and retaining records. In addition, current management and station personnel involved in the Voyager card reconciliation process did not complete the required online Voyager card training.
Reviewing and disputing possible fraudulent transactions ensures the Postal Service is not held financially responsible for unauthorized purchases. In addition, maintaining these records provides accountability of Voyager card transactions and could be used in researching and resolving disputes successfully.
What the OIG Recommended
We recommended district management:
- Develop a process to monitor Voyager card reconciliations and document retention to ensure consistent oversight of the Voyager Card program at the Southeast Austin Station.
- Require all applicable station personnel to complete Voyager card training, focusing on procedures for reconciling and disputing transactions and document retention.