Travel and expense fraud, even if it's rare, can make a significant impact on the bottom line. If left undetected, both fraud and unintentional out-of-policy spending can lead to significant dollar loss and even risk loss of reputation. The good news is there are steps organizations can take to minimize this risk and prevent T&E fraud and misuse before it happens.
Is Travel and Expense (T&E) Fraud Causing Your Budget to Leak?
Travel & expense fraud, even if it’s rare, can make a significant impact on the bottom line. If left undetected, both fraud and unintentional out of policy spending can lead to significant dollar loss and even risk loss of reputation.
The good news is there are steps organizations can take to minimize this risk and prevent T&E fraud and misuse before it happens.
T&E Facts and Figures
The median instance of expense fraud costs $26,000 *
It takes an average of 18 months to detect and 24 months for reimbursement *
“Below the line” expenses of less than $15 - $15 often do not require a receipt, possibly inviting fraud *
6% of T&E transactions are out of compliance – about $60,000 for every $1 million a company spends on T&E *
82% of fraudulent activity is committed by only 5% of employees *
Employees who engage in T&E fraud are 75% more likely to engage in other types of corporate fraud *
10% of travelers had a suspicious or duplicate-out-of-pocket expense on their reports.
Average value: $50 / duplicate *
These Best Practices Can Plug the Leaks:
78% of top T&E systems send alerts when an employee isn’t using a preferred provider *
74% of surveyed companies automatically upload corporate card info to T&E system within a few days *
55% of respondents say their T&E systems flag non-compliant activity. Another 10% of companies expect to have this functionality within 12 months *
Mobile users have a 91% compliance rate to corporate T&E policies. 59% compliance for non-mobile users *
Proactive data monitoring and analysis makes fraud 60% less costly and 50% shorter in duration. *
Use Tools to Prevent and Detect T&E Fraud:
Maintain effective audit and travel rules
Assign and monitor roles and permissions
Properly train managers and processers
Implement a tool with proper reporting for fraud alerts and exceptions
To learn more about how you can improve your travel, expense and invoicing systems, visit www.concur.com today.
Fighting Fraud: The Simple Guide to Preventing ‘Padded’ Expense Reports.”
1 - Concur, p.3.
2 - ibid.
3 - ibid., p. 3.
4 - “T&E Spend Analysis Report.” Oversight. Fall 2014, p. 2.
5 - Jaclyn Jaeger. “Robust T&E Control Policies.” The Nuts and Bolts of T&E Policies. - Concur, p. 5.
6 - “T&E Spend Analysis Report,” p. 5.
7 - ibid., pp. 5-6.
8 - “Find the Insights Hidden in Your T&E System.” Concur, Webinar November 5, 2015.
9 - ibid.
10 - ibid.
11 - Jose Tabuena. “Auditing T&E Expenses: Finding Fraud.” The Nuts and Bolts of T&E
12 - Policies. Concur, p. 9. 12 “Report to the Nations on Occupational Fraud and Abuse.” Association of Certified - Fraud Examiners, p. 5.