Expense Reimbursement Fraud: Detection, Prevention and Deterrence

    /Peter   /Goldmannspeaker of Training Doyensinvite
    Speaker: Peter Goldmann


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    Duration: 60 Minutes
    Product Code: 50634
    Level: Intermediate
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OVERVIEW

Expense reimbursement fraud—encompassing the myriad forms of employee travel and entertainment (T&E) schemes as well as Purchasing Card (P-Card) fraud—costs organizations hundreds of thousands, if not millions of dollars per year

According to the Association of Certified Fraud Examiners (ACFE), expense reimbursement frauds result in a median loss of $26,000 per incident and represent 14.5% of all employee fraud.
While many of these schemes are considered “immaterial”—such as claiming reimbursement for a personal meal ... charging a pay-per-view movie to a business-related hotel bill ... or inflating the cost of a taxi ride—management should not underestimate the cumulative cost of these thefts.

This ‘anti-fraud controls in payroll’ webinar will summarize the main types of reimbursement fraud to be alert of, including several “real life” case studies. It will then explain how to identify the red flags of possible employee T&E and expense reimbursement fraud, offer specific fraud detection and prevention techniques and test for these crimes and conclude with a rundown of proven anti-fraud controls

WHY SHOULD YOU ATTEND

In one case alone, a senior executive of a major multinational company stole $500,000 by abusing his expense account privileges. While this may not be typical of expense reimbursement fraud, it does illustrate how employees who have the opportunity to exploit weaknesses in your organization’s travel and expense policy can do so.

Moreover, anti-fraud experts agree that expense reimbursement fraud can be among the most difficult types of employee crime to detect and prevent. That is in large part due to the extraordinary variety of ways in which such crimes can be committed.

By attending this accounting and reimbursement fraud training, you will learn how vulnerable your organization is to expense reimbursement fraud. You’ll learn about the common and not-so-common ways that these frauds are perpetrated and—most importantly—you’ll learn how to detect the red flags of these schemes, how to audit for them and how to tighten up your controls against them.

AREAS COVERED

INTRODUCTION

  • Statistical overview of the fraud problem generally, and T&E fraud specifically
  • Who commits fraud 
  • Why employees commit fraud (The Fraud Triangle)
  • Lessons from T&E fraudsters

COMMON TYPES OF EXPENSE REIMBURSEMENT FRAUD TODAY

  • Falsifying T&E reimbursement schemes w/ bogus receipts
  • Submitting T&E claims multiple times 
  • Abuse of corporate/P-card for personal gain
  • Claiming for expenses just under the limit requiring approval
  • Purchasing more than needed (e.g. office supplies)
  • Exploiting AP/Disbursements control weaknesses
  • P-Card fraud

RED FLAGS OF AP FRAUD

  • Specific red flags of each of the common expense reimbursement frauds
  • The fraud risk mitigation cycle
  • Implementing an organization-wide system for fraud detection and prevention 

FRAUD DETECTION

  • How T&E frauds are most often detected 
  • Additional general detection methods 
  • Data mining/analytics for fraud detection and prevention 
  • Examples of fraud audit techniques at work 

ANTI-FRAUD CONTROLS FOR EXPENSE REIMBURSEMENT FRAUD

  • Internal controls and other T&E fraud prevention measures
  • Who should manage anti fraud activities
  • Internal controls: do’s and don’ts
  • General controls: segregation of duties, delegation of authority, background investigation
  • Specific expense reimbursement controls and deterrents

LEARNING OBJECTIVES

  • Understand the many types of travel, entertainment and internal procurement frauds
  • Implement effective expense reimbursement fraud detection and prevention techniques and build audit practices to detect red flags of these crimes
  • Implement employee expense reimbursement best practices and anti-fraud control strategies for expense reimbursement fraud

WHO WILL BENEFIT

  • Internal and external audit professionals
  • Accounting and audit practitioners
  • HR managers
  • Senior financial management seeking to reduce their vulnerability to costly frauds 
  • Payables specialists
  • Procurement managers
  • Compliance and ethics managers
  • CFO’s/senior financial managers
  • Security personnel

SPEAKER

Peter Goldmann is President of FraudAware LLC,the publisher of White-Collar Crime Fighter, a widely read bi-monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and investigators. The newsletter is in its 15th year of publication under Peter’s leadership.

Peter is the author of Fraud in the Markets: Why it Happens and How to Fight It, published by John Wiley &Sons. The book is an in-depth account of the role that fraud played in bringing about the financial crisis of 2008. 

Peter is also the authorof four other anti-fraud books covering accounts payable fraud, accounts receivable fraud, as well as two workbooks on fraud and cyber-risk and control, also published by Wiley.

Peter also developed FraudAware, the leading fraud and cyber-crime awareness training program. A user-friendly learning tool, FraudAware uses seminar, Webinar and E-Learning formats to train employees and managers at all levels in how to detect, prevent and report incidents of fraud, information theft and other forms of financial and electronic suspicious conduct.

FraudAware courses, which are customized for individual corporate, non-profit and government agency clients, reinforces organizations’ whistleblowing programs by enabling employees to detect illegal activity that can then be reported to supervisors or managers or by using the organization’s confidential hotline in accordance with established policy.

In addition, Peter has conducted numerous on-site fraud and cyber-crime detection and prevention workshops for internal auditors, attorneys, HR executives and compliance officers at Fortune 500 companies including Siemens Corp., Marriott International, Sony Denny’s Corp,as well as large not-for-profit organizations. He has also been a guest lecturer for college accounting and auditing courses.

Peter has 25 years of experience as a business journalist and trainer, having launched, edited and published numerous business trade periodicals covering small business, international trade, management strategy, cyber-crime (Cyber-Crime Fighter) banking and personal finance. He is a Certified Fraud Examiner (CFE) and a member of the Editorial Advisory Committee of the Association of Certified Fraud Examiners (ACFE).

He has been a columnist for the ACFE’s newsletter, The Fraud Examiner and is a frequent contributor to other leading industry publications on anti-fraud and cyber-crime topics. He has appeared on Fox Business News, The Wall Street Journal This Morning, The New York Times and Internal Auditor magazine.

Peter holds a Bachelor’s degree from the University of Michigan and a Master’s from the London School of Economics.

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