One of the most common ways that crooked employees defraud their employers is by cheating on or padding expense reimbursement reports. Fortunately, you can stop this type of fraud with strict controls and by punishing the perpetrators.
Employees often cheat on their reimbursement reports by inventing expenses. They might, for example, stick your company with the bill for a lavish dinner with friends or expense hotel costs accrued while extending a business trip for leisure. Employees may also exaggerate the amount of legitimate expenses by, say, claiming larger service tips than they actually paid.
Other common reimbursement fraud schemes include submitting:
Individual incidents of expense reimbursement fraud don’t typically involve significant sums. But left unchecked, they can add up, particularly if executives or frequent travelers are the perpetrators. Contact us with any questions.