Top 5 expense frauds you need to watch out for

Brought to you by Concur

Expense fraud costs businesses an important amount of money each year. Creating a clear T&E policy and making sure that the claims are effectively reviewed before being approved are some of the steps to prevent this from happening to you.

One in five employees think it’s okay to exaggerate expense claims. Whether they are small exaggerations or completely fake invoices, they often go undetected for months and create a problem that costs every business over £30,000 a year.

But what can you do to prevent this from happening to you? Here is a list of the expense fraud clues that you should watch out for:

  1. Employees that spend more than their colleagues

Are any employees claiming bills that are much higher than other members in similar roles? The best way to prevent this could be to clearly state what constitutes acceptable amounts to claim on your expenses policy.

  1. Claiming non business-related items

As above, providing more guidance will likely reduce the chances of employees claiming for non-business items that are not covered on the policy. Training managers to take a moment to think about a claim before approving also helps.

  1. Inflating real expenses

Employees can easily inflate any expenses paid by cash, so make sure you set a maximum amount for cash purchases and request receipts for the purchases.

  1. Overcharging the company card

If employees have access to a company card, managers and the finance team should check statements for any illegitimate payments. A company card can reduce administration time but it can also hide expenses that shouldn’t be covered by the company.

  1. Splitting the bill

Watch out for big expenses that have been split into smaller claims and consider setting expense limits for each trip.

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