Oversight has added two capabilities to its Insights on
Demand solution as part of its core offering. Research from the monitoring and
auditing company indicates that less than 5 percent of business travelers
commit nearly 80 percent of all fraudulent and major out-of-policy
transactions. The new offerings are designed to identify such habitual
offenders.
The new Repeat Offenders feature automatically highlights those
business travelers who claim the most noncompliant reimbursements on expense
reports and corporate cards, as well as those who have submitted fraudulent
expenses in the past, such as requesting reimbursement for personal expenses.
The Excessive Attendee feature detects when the same
employees repeatedly appear as attendees on the same meal or entertainment
expense claims, a sign that employees might be adding colleagues' names to get
around spending limits or might be colluding in some other way. The feature
also allows a program manager to set a total that a salesperson can spend on a
certain client or a total number of times a salesperson can entertain a certain
client; the system then would notify the program manager when expense claims
surpass that threshold.
What About When a
Senior Exec Triggers a Red Flag?
Research by the Association
of Certified Fraud Examiners in 2014 indicated that executives and upper
management accounted for more incidents of expense reimbursement fraud than do lower
employees: "High-level fraudsters tend to have greater access to their
organizations' assets than lower-level employees, as well as a better ability
to evade or override anti-fraud controls."
However, it's hard to encode rules for senior executives into
software because many senior executives enjoy fewer policy restrictions or more
spending leeway. Thus, Insights on Demand allows a company to establish a list of
executives and to design an alternative routing hierarchy for their flagged
expenses.