Mitigating Corporate Travel Fraud with Expense Report Software
Although many technological advancements are occurring in expense management, expense fraud is still a common problem in organizations. Citing the Association of Certified Fraud Examiners (ACFE) report, around 14% of fraud in companies account for expense reimbursement, which is the third most common fraud happening in companies.
Though companies employ trustworthy people, every employee has the scope for committing fraud. Some employees submit fraudulent expenses unknowingly, while some want to defraud their employers. Employees committing expense fraud will often go unnoticed, eventually adding up fraudulent claims to a significant amount.
Normally, all expense categories are suspected of fraud, but the mileage reimbursements are one of the most exploited travel categories. Travelers can easily inflate the distance traveled, and often accounting departments will not review mileage line item if it is on the trip. Though these charges may be minimal at the initial level, they get add up over time and when the majority of employees commits this fraud, it becomes massive.
While the strategies that employees use are meticulous, it has become hard to detect through manual procedures. The increased use of automated expense management systems allows travel managers and accountants to review the expense process and dig deeper into employee expense claims. With the advancements in technology, fraud expense claims can be easily identified and resolved through policy enforcement, spending category limits, and other protocols.
Moreover, other issues such as mileage reimbursement and duplicate expenses, automated systems will allow for GPS tracking and mileage calculation. GPS calculates the trip distance and automatically sets the total trip miles and reimburse based on the price set per mile. Fraud happens everywhere but the advancement in technology will avoid employees from taking advantage of corporate travel.
Request a free demo to learn more about SutiExpense Expense Management.
