Fraudulent spending has the potential to significantly impact an organisation’s bottom line. The 2018 Global Study on Occupational Fraud and Abuse found that for organisations across the globe, approximately five per cent of their annual revenue is lost due to fraud each year, with the average loss in the Asia Pacific region totalling US$236,000 per year.
To ensure that organisations are not continuously looking to recoup losses, it is important to identify potential fraud schemes and implement systems to prevent them.
As organisations grow and more expense claims are filed, it can be hard for accounts to keep up if they are managing all these receipts and invoices manually. This can set up an environment in which both intentional and accidental fraud can occur.
The four types of expense fraud schemes that organisations need to look out for are:
While in some instances fraud is intentional, in most cases it is a result of an accident or confusion as to what the organisational policy is on travel and expense claims. Regardless, organisations with anti-fraud safeguards and expense management systems can more than halve their fraud losses and double their detection rate.
Fraud can potentially affect any business of any size, with potentially damaging results, so it’s important for businesses to understand the risk and act decisively to reduce it. All organisations need to stay on top of the risk of expense report fraud. Left unchecked, fraud can cost organisations hundreds of thousands of dollars, which they may never recoup.
Technology that uses the most advanced tools such as artificial intelligence (AI) to identify, validate and report on transactions can improve both financial visibility and control. With robust monitoring, data gathering and insights, and policy enforcement capabilities, organisations can effectively manage the issue of fraud and compliance.
Matt Goss, Managing Director ANZ, SAP Concur