Key Findings about Expense Fraud Every Business Owner should Know
According to the Chrome River Survey, expense fraud costs around $2.8 billion per year to US employers. On average, $2448 worth of fraud is being claimed by employees each year.
Who Commits Fraud?
Reportedly, 73% of men and 27% of women commit fraud. Companies with more than 390 employees are more vulnerable to fraud. More importantly, white-collar and non-managerial employees tend to indulge in fraudulent activities.
What are the Most Common Fraudulent Claims?
The following are a few claims that are observed in most companies:
- 44.8% of personal expenses claimed as companies expenses
- 34.5% of additional mileage is added to the actual mileage
- 29.3% of amount is claimed as tips than the actual given
- 27.6% of amount is spent for an item more than the allowed
Major Industries Experiencing the Expense Fraud
- 19% of people in entertainment sector
- 17.1% in travel and transportation sector
- 16.7% in food and dining
- 10% in business support and supplies
- 9.5% in Automotive industry
How to Prevent Fraud from Happening?
Deploying expense management software is an ideal way to prevent expense fraud in companies. It is proved that online expense management software reduces expense fraud by 68%. Around 76% of companies who report fraud do expense reimbursement process manually. Enforcing expense reimbursement policies is also the best way to minimize fraud. SutiExpense can help you fight fraud and ensures that only the expenses that comply with the company’s expense policy will be reimbursed. Besides, our SaaS-based solution helps you minimize the costs associated with software deployment.
