10 ways to prevent business expense fraud and abuse
The real impact of expense fraud
Business expense fraud is a considerable issue across the world. According to a survey that Chrome River conducted of more than 1,000 business travelers, expense fraud is estimated to cost $2.8 billion dollars a year in the United States. These are not simple cases of an occasional dinner being fraudulently expensed – in fact, according to data from the Association of Certified Fraud Examiners, on average 24 months elapse between the first instance and the individual (or individuals) being caught – if ever. In many cases the amounts increase over time as the perpetrators become ever more brazen. This fraud isn’t just a rank-and-file issue – in fact more than a quarter of all cases are committed by executive-level staff, and the more senior the perpetrator, the greater the loss to the organization. In addition, our research shows that only 17% of perpetrators get caught.
The impact of expense fraud goes far beyond the financial loss suffered. Organisations’ liabilities can range from audits to loss of investor confidence, and of course for those responsible for expense management and approval, failing to stop fraud can be somewhat career limiting.
Your organisation need not be the next victim of travel and expense fraud. In this white paper, we will outline the different types of expense fraud, and will also explain how organizations can reduce and even eliminate the risk of expense fraud.
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