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Preventing Business Expense Fraud – Part 2

Preventing Business Expense Fraud
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In continuation to our previous post, this article outlines some more strategies to prevent expense fraud. Let’s take a look at some of the best strategies:

Mandating Pre-approval Process

Pre-authorization reduces the possibility of expense fraud. Pre-approval system works in conjunction with a corporate card or travel booking solution and helps improve visibility over the entire chain of reimbursement cycle. Mandating this allows employees to select their tickets, but the final approval should come from authorized persons who have to approve to make a purchase. Automated expense solution can alert approvers whenever an employee makes a purchase requests so that they can review expenses before they actually happen.

Duplicate Expense Checking

Legitimate expenses can be duplicated. If multiple people submit the same expense at different times, it can be easily overlooked – especially if there are more than one approver. Flagging duplicate expenses allows organizations to easily figure out and limit payments. Tracking duplicate receipts can figure out if the same receipt has been submitted by another employee. Duplicate receipts can be identified if the same expense is submitted twice and flagged as fraudulent.

Approval Routes & Audits

Auditing every expense claimed by the employee is nearly impossible. Organizations can enforce rules such as only for certain categories of expenses a notification will be triggered for audit before starting the reimbursement process. By creating business rules that send miscellaneous expenses or those higher than the limit set for audit, organizations can provide an additional level of security before reimbursement happens.

Mileage Tracking

Tracking mileage through expense report solution allows approvers to verify the mileage submitted by employees. This eliminates the possibility of increasing distance and claiming more miles. Auto-calculating mileage using GPS technology will eliminate this type of fraud.


Analyzing organization’s expenses offer a number of benefits to the organization – receiving vendor discounts, identifying cost savings, and minimizing credit charges. Analytics can help figure out areas of overspending and subsequently prevent expense fraud. Running analytics across the organization helps you to identify and flag behavior that is out of policy or fraudulent.

Here you go for Preventing Business Expense Fraud Part -1

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