Ways To Protect Your Company From Expense Report Fraud

Ways To Protect Your Company From Expense Report Fraud

Ways To Protect Your Company From Expense Report FraudCompany fraud can happen at any sector of the business realm. However, one of the easiest ways to steal from a company is through expense reimbursements. According to The Association of Certified Fraud Examiners, approximately 14.5% of all asset misappropriations investigated involved expense reimbursement fraud.

With that being said, keeping your company safe from fraud is an absolute priority. When an employee is being dishonest, it affects everyone in the company. In order to preserve the integrity of your establishment, it’s important to be aware of any fraudulent behavior and have ways to check for it.

Examples Of Fraudulent Behavior

There are a handful of ways that fraudulent behavior can occur on expense reports. A dishonest employee may charge for items that are used for personal reasons, such as groceries and entertainment. They may also seek reimbursement for items that were never actually purchased. Lastly, they could just falsify or manipulate receipts that are handed in for expense reports.

If you don’t think fraud is a real problem, think again! In 2014, Canadian senators Patrick Brazeau and Mac Harb were caught falsifying expense reports by lying about travel and living expenses. They claimed reimbursement for travel and housing expenses for secondary homes near Ottawa. While these people got caught, not everybody does. Therefore, you must be aware of any shady activity going on around your company.

Combat These Problems With Expense Report Software

Have you seen any fraudulent behavior in your company? If not, make sure you inspect your expense reports. Employees can easily cover up their expenses if nobody is supervising correctly. WIth automated expense report software, the need to govern is assigned to the software. By making employees fill out expense reports on the software, everything can be tracked accordingly and effectively. If you are having trouble with fraud, make the switch over the expense report software.