Study Shows $13.7 Million Lost in Expense Report Fraud

Analyzing corporate expense reports for over 160,000 travelers, a report by an auditing and expense management company revealed $13.7 million in fraudulent transactions during a three-month period.

According to the report, 6.3% of all transactions were considered out of compliance, with 19% of those transactions classified as fraudulent. Of those noncompliant transactions:

Suspicious out-of-pocket expenses reached $15 million (2.8% of all transactions analyzed)

Policy misuse accounted for $14.9 million

Duplicate transactions represented $3.8 million

Only 5% of employees were responsible for 82% of fraudulent expenses

To mitigate non compliant or fraudulent transactions, many organizations are turning to automated expense-reporting software like Certify. With Certify, employees are immediately notified whenever they violate company policy. The customizable system prevents overspending and policy violation, eliminates duplicate transactions, and still provides employees flexibility when travel booking.