“Where there’s money, there’s money to steal,” writes Tiffany Couch in a recent article in Accounting Today. The CEO of forensic accounting firm Acuity Forensics says that even after 15 years as a forensic accountant, it never ceases to amaze her that fraudsters think they can get away with their crimes. All in the name of securing additional cash.
According to the Association of Certified Fraud Examiners’ 2018 Report to the Nations, expense reimbursement fraud accounts for 21 percent of fraud in small businesses (those with less than 100 employees), and 11 percent in large businesses (those with 100 or more employees). In fraud investigations, this type of scheme is often considered the “low-hanging fruit,” because it is easy to detect. If you come across an expense reimbursement fraud, understand that it can also indicate a much larger problem. If someone is willing to perpetrate one scheme, they are often willing to perpetrate others. Cases can range from a few hundred dollars of padded receipts to millions in a systemic scheme that spans several years.
Among the tips Couch has for preventing reimbursement fraud are requiring original receipts, establishing a detailed travel reimbursement policy, requiring double review, and more.