Travel and expense is the second only to maintenance and repairs on the list of most difficult costs to control, according to Forrester Research. Whether that’s due to poor management of expenses, unclear spending policies, or just plain expense fraud, undetected occurrences of illicit spending can hurt not only your bottom line, but your company’s reputation.
Expense Reimbursement Fraud Facts
According to the Association of Certified Fraud Examiners’ 2016 Report to the Nations, the average duration of expense reimbursement fraud lasts for 24 months before detection, accounted for 14% of all asset misappropriation fraud, and averaged $40,000 lost by organizations.
The research goes on to point out that asset misappropriation, which includes expense reimbursement fraud, overlaps frequently with other forms of fraud, meaning that in addition to the 57.2% of cases where Asset Misappropriation was the only fraud scheme, another three out of ten cases had some other indiscretion committed.
The report goes on to highlight the most common types of expense reimbursement fraud—mischaracterized expenses, overstated expenses, fictitious expenses, and multiple reimbursements.
Stopping Expense Reimburse Fraud and Misappropriation
51% of executives believe that their leading management concern is poor visibility into T&E spending and compliance, and employees are taking advantage. To address this, Concur recently released an infographic to show just how much money fraud is costing your organization, as well as strategies to mitigate risk.
How the Right Solution Can Help You Plug the Leaks
As the infographic noted, it pays to proactively monitor possibilities for fraud and stop the leakage before your organization is run dry. Four tips:
- Maintain effective audit and travel rules
- Assign and monitor roles and permissions
- Properly train managers and processers
- Implement a tool with proper reporting for fraud alerts and exceptions
Motivation plus opportunity equals crime. Minimize the opportunity for employees to get away by gaining visibility into spend. Learn more in our blogs, Travel and Expense Needs Visibility and Overcoming Challenges in T&E Management, and contact us to learn more about how you can not only plug the leaks in expense management, but also to lead your organization to success with Concur.