SIMPLE TECH: Eliminating Expense Fraud

Validu is technology that simplifies with the intention to alleviate the worry and headaches associated with expense fraud, waste, and abuse, so you can focus your company on making business happen instead of reacting to internal flaws. Do you have any idea how simple this is to integrate?

It sounds too good to be true, so how simple can it really be? Shockingly simple! This is technology that shifts the approach to addressing expense fraud, waste, and abuse head-on instead of just reacting to it. It will make your company PROACTIVE, deterring abuse and fraudulent activity, as opposed to dealing with the cleanup of an event after it’s already occurred.

In a recent article on intheblack.com, they did a little digging into the trends and reasons for expense fraud and found that, “The Association of Certified Fraud Examiners’ 2016 Report to the Nations on Occupational Fraud and Abuse concluded expense fraud accounts for 14 per cent of all asset misappropriation fraud schemes. It is among the most common forms of fraud, and affects businesses big and small.” The article goes on to say, “The Global Report on Employee Expense Fraud, released last year by expense management software company webexpenses is based on a survey of more than 4000 office workers in Australia, New Zealand, North America and the UK. In the findings, 42 per cent of Australian respondents admitted to mileage fraud, and 22 per cent said they had taken friends or partners out for a meal or drinks and claimed it as a work-related expense.  A similar percentage had claimed personal items and their own food and drinks on expenses. One respondent admitted claiming an anniversary dinner on client-related expenses, and another said they upgraded a hotel room to accommodate their partner tagging along,” says Ashley Whiteman, Asia Pacific general manager of webexpenses.”

Why does this happen?  Because it’s too easy, and previous attempts to prevent expense fraud have fallen short.

Emily Jaksch, director at Melbourne-based HR consultancy HR Gurus, regards expenses fraud as a crime of opportunity. “Human behaviour is a fickle thing and people will most often take the opportunity to rort the system if it is there for the taking,” she says.

Whiteman says expenses fraud often occurs due to lack of robust expense claim management, and manual processes that can’t keep up with a growing business’s needs. Finance teams simply don’t have time to check and interrogate every expense claim; in fact, the webexpenses report found that 86 per cent of office workers had never had expense reports challenged or declined. “Often the checks for claims are insufficient, particularly with a manual process, as it’s hard to keep track receipts, duplicates and spending limits,” say Whiteman.

Poor communication is also opening the door to fraudulent claims: 61 per cent of respondents said they hadn’t seen or read their company’s expense policy within the past 12 months. “Expense fraud is a big issue,” says Jaksch. “To ensure people know your expectations, you need to regularly update your policy, ensure employees know what it is, where it is and keep talking about it.”

Validu truly puts your company in the driver’s seat. Not only does the software seamlessly integrate with current expense reporting platforms, it gives you the amazing benefit of real-time access to all expense entries made by your representatives in the field – anytime and from anywhere in the world.

What happens to all the time you regain, and money you save when you don’t have leaks and cracks in the system?

Your business grows and earning potential is fully realized.

Read full article here.

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