Expense Reimbursement Fraud: Detection, Prevention and

Deterrence.
Date: Tuesday, July

07th, 2015 || Time: 01:00 PM EDT | 10:00 AM PST

Duration: 90 Minutes || Course Level: Beginner

'Live' Webinar by Peter

Goldmann

Register Now

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 webinar will summarize the main types of employee reimbursement policies to be
alert to, including several real life case studies. It will then explain how to identify the
red flags of possible reimbursement fraud, offer specific fraud auditing and test for these
crimes and conclude with a rundown of proven anti-fraud programs.
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 organizations expense reimbursement processes and
procedures 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 Webinar, you will learn how vulnerable your organization is to expense
reimbursement fraud. Youll learn about the common and not-so-common ways that
these frauds are perpetrated and, most importantly, youll 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 in the webinar
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 with 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 detecting, preventing and investigating
fraud
FRAUD DETECTION
How T&E Frauds are most often detected
Additional general detection methods
Data Mining/Analytics for fraud detection
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: Dos and Donts
General controls: Segregation of Duties, Delegation of Authority, Background
Investigation
Specific Expense reimbursement controls and deterrents.
Learning objective
Participants will be able to:
Understand the many types of travel, entertainment and internal procurement frauds
Implement effective expense reimbursement fraud detection techniques and build audit
practices to detect red flags of these crimes
Implement best-practice Anti-Fraud Control strategies for expense reimbursement
fraud

Who will benefit

Internal Audit Professionals

External Audit Professionals
Accounting Practitioners
Audit Practitioners
HR Managers
Senior Financial Management
Payables Specialists
Procurement Managers
Compliance Managers
Ethics Managers
CFOs
Security Personnel

Speaker profile
Peter Goldmann is founder and President of White-Collar Crime 101 LLC, the
parent company of FraudAware and publisher of the monthly newsletter,
White-Collar Crime Fighter. Peter has been the Publisher and Editor of
White-Collar Crime Fighter for over 12 years and is recognized as a leading expert in the
areas of fraud detection, prevention, investigation and training. He has written numerous
articles on practical approaches to fraud prevention and detection for, among others,
Internal Auditor, Investor's Business Daily, Financial Executives Institute and Bottom
Line/Personal, Recognizing the vulnerability to fraud posed by a lack of awareness on
the part of rank-and-file employees about specific types of economic crime , Peter
launched the development of FraudAware in 2001. Following enactment of the SarbanesOxley Act of 2002, FraudAware began helping companies resolve the unexpected
increase in fraud losses, despite the costly implementation of SOX- mandated internal
controls. He determined that while internal controls, Tone at the Top and whistleblower
hotlines are all essential components of an effective anti-fraud program, the primary
reason for continuing losses to internal and external economic criminals was a
widespread lack of fraud awareness on the part of corporate rank-and-file employees. He
theorized that if an organization's most valuable asset--its workforce--could be taught to
spot and report telltale signs of fraud, investigations could be initiated and perpetrators
apprehended before major losses were incurred and negative publicity tarnished the
organization's reputation. The theory has proved viable over the past six years, as
FraudAware training programs implemented at numerous companies in all major
industries, have taught employees how to detect the common and not-so-common red
flags of fraud and--most importantly--how to report these incidents through their
employer's confidential hotline channels.