Travel & Entertainment/Expense Reimbursement Fraud: Detection & Prevention
OVERVIEW Expense reimbursement fraud—encompassing the myriad forms ofemployee travel and entertainment (T&E) schemes as well as Purchasing Card(P-Card) fraud —costs 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. Entertainment Reimbursement Fraud WHY SHOULD YOU ATTEND In one case alone, a senior executive of a major multinational company stole $500,000 by abusing his expense account privileges. While this may not be typical of expense reimbursement fraud, it does illustrate ...