Employee Expense Reimbursement Fraud: Schemes and Controls

Expense reimbursement fraud is among the hardest employee crimes to detect and prevent, largely because it can be committed in so many ways. This 90-minute expense reimbursement fraud webinar summarizes the main schemes and analyzes several real-life case studies.

You'll look at who commits fraud and why, using the fraud triangle, then at common schemes: bogus receipts, duplicate claims, personal use of corporate cards and P-cards, claims just under approval limits, over-purchasing and exploiting AP weaknesses.

The session explains the red flags of each scheme, how T&E fraud is usually detected, data mining and fraud audit techniques, and the general and specific controls that deter and prevent it.

• Recognize the many types of travel, entertainment and procurement fraud
• Explain why employees commit fraud using the fraud triangle
• Identify the red flags of common expense reimbursement schemes
• Apply fraud audit and data analytics techniques to detect these schemes
• Implement best-practice anti-fraud controls for expense reimbursement

Introduction

• Statistical overview of fraud in general and T&E fraud in particular
• Who commits fraud
• Why employees commit fraud: the fraud triangle
• Lessons from T&E fraudsters

Common types of expense reimbursement fraud

• Falsified T&E claims with bogus receipts
• Submitting the same claim more than once
• Abusing corporate cards and P-cards for personal gain
• Claiming expenses just under the approval limit
• Purchasing more than needed, such as office supplies
• Exploiting AP and disbursement control weaknesses
• P-card fraud

Red flags

• Specific red flags for each common scheme
• The fraud risk mitigation cycle
• An organization-wide system for detecting, preventing and investigating fraud

Fraud detection

• How T&E frauds are most often detected
• Other general detection methods
• Data mining and analytics for fraud detection
• Fraud audit techniques at work

Anti-fraud controls

• Who should manage anti-fraud activities
• Internal control do's and don'ts
• General controls: segregation of duties, delegation of authority and background checks
• Specific expense reimbursement controls and deterrents

Any weakness in your reimbursement processes gives employees an opening. This webinar shows how vulnerable your organization is, how to audit for these schemes and how to tighten your controls.

It suits internal and external auditors, accounting practitioners, HR managers, CFOs and senior financial managers, payables and procurement specialists, compliance and ethics managers, and fraud investigators and examiners.

• 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 is president of FraudAware LLC, the publisher of White-Collar Crime Fighter, a widely read monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and fraud investigators. The newsletter is in its 15th year of publication under Peter's leadership. 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 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. In addition, Peter has conducted numerous on-site fraud detection and prevention workshops for internal auditors, attorneys, HR executives and compliance officers at Fortune 500 companies and large not-for profit organizations. He has also been a guest lecturer for college accounting and auditing courses. Peter has 30 years of experience as a business journalist and trainer, having launched, edited and published numerous business trade periodicals covering small business, international trade, management strategy, banking and personal finance. He is a Certified Fraud Examiner. Peter holds a Bachelor's degree from the University of Michigan and a Master's from the London School of Economics (CFE).