The Psychology of Expense Fraud

Expense Fraud

People will be people. However, it is human nature, which makes one person different from the other. Some people might just not mind fraud whether it involves few bucks, hundreds, or thousands.

There had been reports of travel fraud scams and also on the ongoing expense. It appears that some employees simply do not mind charging a few extra bucks for something. Some are reimbursing more than they actually spend. There are new tools and techniques, which companies use in order to catch the employees who behave like this on a regular basis. Using company cards for making personal purchases or random purchases is highly unethical; however, it might be a common practice for some of the employees. The biggest threat for a company is bigger corruption and the mismanagement of assets.

fraud-restaurant-bill

Travel expense fraud had been quite prominent recently because many leaders of the government had been traveling on the taxpayer money around the world. This kind of fraud sometimes goes undetected, especially on the corporate level. According to Chrome River Rich, there are two kinds of people who are likely to commit expense fraud or an expense error, for example, the first category, which does an error is doing a genuine mistake when loading the data because he or she is exhausted, or had too many cocktails. On the other hand, people in the second category actually have a scheme for doing the fraud.

However, companies belonging to the modern era have now automated systems, which mean it is going to catch the employees, who are plotting such schemes to earn extra.

Expense fraud, which involves a few bucks, is hard to detect. It is, however, interesting to note that people are taking risk of their job over a small amount. People have great jobs and salary and even after that, they would commit small expense fraud. Some people go to the extent of buying expensive jewelry for their spouse on the corporate card, which is unethical.

Final Words

Technology is changing the way companies work in the era of modernization and information technology. There is now automated software, which is an amazing investment on the company’s part. It is important to keep the fraud at bay even if it involves a few extra bucks. Small frauds are not easily detected and they do not cause much harm to a certain company. On the other hand, when a fraud is of greater extent and involves quite a lot of amount, it is important to take an action against it.

Catching money

Expense fraud is hard to detect in small amounts. It appears that presently, it is quite tough to catch an employee who is charging a few bucks extra for the lunch he or she bought and it is a small amount, which means that it would go undetected. However, in future, it would be possible to catch small frauds. An employee should keep their morale high and should follow ethics when dealing with company cards. When their ethics would be strong, a fraud would not occur. However, it depends on person to person and there would be a technique to catch these frauds in the future.

References

https://www.inc.com/john-brandon/6-great-business-travel-websites.html
https://www.airfarewatchdog.com/
https://www.allianztravelinsurance.com/travel/guides/top-destinations.htm

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https://www.skyscanner.net/news/50-insider-travel-tips-tricks-what-we-ve-learned-about-travelling

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https://www.usatoday.com/story/travel/2016/05/01/china-business-travel-boom/83652244/
https://en.wikipedia.org/wiki/Economy_of_China
http://www.asiaone.com/business/business-travel-in-china-continues-to-grow-as-chinese-companies-increasingly-see

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