Fibbing Business Travelers Lead to $2.8 Billion Expense Report Losses
Photo courtesy of Thinkstock
A little fibbing can mean a great deal. And simple fudging of some numbers can eventually lead to an insane sum.
Expense management website Chrome River released some startling news for travel managers to consider.
There is indeed a number to go along with travel expense fraud, and it’s a big one: $2.8 billion per year.
Chrome River released its study of 1,000 business travelers in a press release, explaining how various instances of fraud can accumulate to a nauseating sum.
Now rest easy, fine travel managers. Most of your road warriors are honest people who are as close to exact in their reports as one could hope.
The release states that about 94 percent of business travelers are aboveboard and don’t bog down their respective company with falsified reports.
But it seems that the remaining employees amount to an average of “$2,448 in false expense reports per year.”
The following infographic breaks down some of the more intriguing facts and figures:
Infographic courtesy of Chrome River
Chrome River’s CEO Alan Rich had thoughts on the costly act of expense fraud, stating, “While it is certainly heartening to see that most employees are honest, the financial impact of expense fraud cannot be underestimated.”
Rich continued: “These statistics show that expense fraud could be committed by even those in the company who are least expected to do so. Companies can step in to encourage honesty with a few simple steps. Reducing temptation by implementing expense policies and processes can have a dramatic impact on minimizing fraud.”
By an overwhelming margin, tips and mileage were given as the greatest culprits, clocking in at 63.8 percent of the most common types of fraud.
You can see instantly how simple it would be to get a little creative in this regard, especially for meals paid for with cash or with companies that don’t ask for exact mileage accounts.
There are ways to curb the madness, including utilizing a company credit card policy for all purchases. Or, as the release suggests, embracing the very era in which we live.
That’s right; technology like apps and expense management tools can go a long way to ensuring things are reeled in a bit.
Fraud is 68 percent less likely if expensed electronically over manual means, via the press release.
For you globetrotting travelers, you have been warned. Life is hard on the road and we appreciate what you do.
But it’s time to be a bit more honest with your reports, because technology is here to make fibbing all the more difficult.
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