Employee Expense Reimbursement Fraud: Detection, Prevention and Deterrence

Why Should You Attend:

Employees who have the opportunity to exploit weaknesses in your organization’s expense reimbursement processes and procedures can do so. Moreover, anti-fraud experts agree that expense reimbursement fraud can be among the most difficult types of employee crime to detect and prevent. That is in large part due to the extraordinary variety of ways in which such crimes can be committed.

By attending this Webinar, you will learn how vulnerable your organization is to expense reimbursement fraud. You’ll learn about the common and not-so-common ways that these frauds are perpetrated and — most importantly — you’ll learn how to detect the red flags of these schemes, how to audit for them and how to tighten up your controls against them.

Learning Objectives:

By attending this webinar, participants will be able to:

• Understand the many types of travel, entertainment and internal procurement frauds.
• Implement effective expense reimbursement fraud detection techniques and build audit practices to detect red flags of these crimes.
• Implement best-practice Anti-Fraud Control strategies for expense reimbursement fraud.

Areas Covered in the Webinar:

INTRODUCTION

• Statistical overview of the fraud problem generally, and T&E fraud specifically.
• Who commits fraud.
• Why employees commit fraud (The Fraud Triangle).
• Lessons from T&E fraudsters.

COMMON TYPES OF EXPENSE REIMBURSEMENT FRAUD TODAY

• Falsifying T&E reimbursement schemes w/ bogus receipts.
• Submitting T&E claims multiple times.
• Abuse of corporate/P-card for personal gain.
• Claiming for expenses just under the limit requiring approval.
• Purchasing more than needed (e.g. office supplies).
• Exploiting AP/Disbursements control weaknesses.
• P-Card fraud.

RED FLAGS OF AP FRAUD

• Specific red flags of each of the common expense reimbursement frauds.
• The Fraud Risk Mitigation Cycle.
• Implementing an organization-wide system for detecting, preventing and investigating fraud.

FRAUD DETECTION

• How T&E Frauds Are Most Often Detected.
• Additional General Detection Methods.
• Data Mining/Analytics  for fraud detection.
• Examples of Fraud Audit Techniques at Work.

ANTI-FRAUD CONTROLS FOR EXPENSE REIMBURSEMENT FRAUD

• Internal Controls and Other T&E Fraud Prevention Measures:
• Who Should Manage Anti Fraud Activities.
• Internal Controls: Do's and Dont's.
• General controls: Segregation of Duties, Delegation of Authority, Background Investigation.
• Specific Expense reimbursement controls and deterrents.

Who Will Benefit:

• Internal and external audit professionals
• Accounting and audit practitioners
• HR managers
• Senior financial management seeking to reduce their vulnerability to costly frauds
• Payables specialists
• Procurement managers
• Compliance and ethics managers
• CFO's/senior financial managers
• Security Personnel/Fraud Investigators and Examiners

Peter Goldmann
President, FraudAware LLC

Peter Goldmann is president of FraudAware LLC, the publisher of White-Collar Crime Fighter, a widely read online information source for internal auditors, controllers, corporate counsel, financial operations managers and fraud investigators.

Peter is the author of Fraud in the Markets: Why it Happens and How to Fight It, published by John Wiley & Sons, as well as four other anti-fraud books.

Peter also developed FraudAware, the leading employee fraud awareness training program. A user-friendly, customized learning tool, FraudAware uses workshop, Webinar and E-Learning formats to educate employees and managers at all levels in how to detect, prevent and report incidents of fraud or suspicious conduct.

Peter holds a Bachelor’s degree from the University of Michigan and a Master’s from the London School of Economics

He can be reached at [email protected]

Topic Background:

Expense reimbursement fraud—encompassing the myriad forms of employee travel and entertainment (T&E) schemes as well as Purchasing Card (P-Card) fraud—cost organizations hundreds of thousands, if not millions of dollars per year.

According to the Association of Certified Fraud Examiners (ACFE), expense reimbursement frauds result in a median loss of $26,000 per incident and represent 14.5% of all employee fraud.

While many of these schemes are considered “immaterial”—such as claiming reimbursement for a personal meal ... charging a pay-per-view movie to a business-related hotel bill ... or inflating the cost of a taxi ride—management should not underestimate the cumulative cost of these thefts.

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