Who and what is behind business expense fraud?
Given that it is costing the US economy alone $2.8bn annually, and only 17% of fraudsters are caught, it pays to know where the weak links are. And research from expense software firm Chrome River makes for very interesting reading.
Who commits expenses fraud?
Men submit 73% of false expenses, and employees in Senior Vice President roles are the worst culprits.
How is it done?
Most commonly, receipts, including those for personal purchases, are given to junior colleagues to include in reports.
What’s claimed?
Additional mileage and personal items are the most frequent bogus claims.
Which industries are hit hardest?
The top three worst-affected industries are travel, entertainment and food. Legal and financial services fare better with 3.2% of people admitting to expense fraud.
But it is important to remember that the majority of claimants aren’t intentionally trying to fiddle their reports. Many organizations lack clear-cut rules about what is allowed and what isn’t, meaning items are approved when they shouldn’t be.
The good news is that there’s an easy way to drastically reduce your organization’s exposure. Expense management systems reduce fraud incidents by 68%, according to Chrome River.
Download their infographic full of eye-opening statistics to find out how.
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