“A company loses 5% Revenue in EXPENSE FRAUDS.” (ACFE Report ,2016)
Shocking, right? While it’s easy to believe a few rupees here and there won’t hurt, expense frauds can accumulate to a substantial amount over time.
What’s equally surprising as the value of expense frauds is the time taken to detect them. The ACFE Report 2016 also claims; it takes 18 to 20 months to detect expense frauds. Sadly, only 49% of the companies are able to recover losses even after detection of these frauds.
The most common form of expense fraud is fake receipts. Others include overstating claims (e.g. mileage) and claims for cancelled expenses (e.g.cancelled airfare). Employees can also defraud employers through double dipping ( claiming a single expense from multiple sources) and passing off personal purchases as business spends.
Often, the people who you least expect to commit fraud are the ones actually doing so. A recent survey conducted by the Association of Certified Fraud Examiners revealed that employees comprising the “Executive/Upper Management” level in a company account for nearly 27 percent of expense reimbursement fraud cases.
Take a look at this infographic to get an idea of the ‘pain’ expense fraud can be for a business like yours.
FRAUD PREVENTION IS BETTER THAN CURE
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