Survey: Expense Fraud Costs U.S. Employers
Adding mileage to journeys and recording tips higher than what was actually given are among several ways employees “pad” expense reports, suggests a recent online survey of more than 1,000 business travelers. Further, it was found only 17% of those who committed expense fraud were caught.
Expense fraud committed by employees is estimated to cost U.S. businesses more than $2.8 billion per year, according to Chrome River Technologies, www.chromeriver.com, Los Angeles, Calif., citing a survey that the provider of expense management and supplier invoice processing software conducted in February of this year.
Although more than 94% of employees who submit business expenses claim to do so honestly, says Chrome River, those who commit fraud claim an average of $2,448 in false expenses per year (although some individuals admit to claiming as much as much as $25,000 per year). Across the entire U.S. workforce, indicates the company, this equates to more than $2.8 billion in total annual losses, with more than 1.1 million individuals submitting fraudulent expenses each year.
One solution for reducing expense fraud is through technology, contends the provider of expense reporting and supplier invoice automation solutions that combine the enterprise and mobile technologies. According to Chrome River, the incidence of fraud among those who submit through an expense management solution is 68% less than those who submit manually by sending in receipts and a spreadsheet, or simply give receipts to an administrator.
Perhaps, however, some positive news for the construction industry can be drawn from the poll’s findings: “Construction & Contractors” represented the lowest percentage (2.7%) by industry of survey respondents who admit to falsifying expenses.
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