What Is Fraud Prevention? Key Points for Corporate Expense and Travel Fraud Control

Key points

• Fraud prevention cannot be a check-the-box exercise and must go beyond simple compliance with proactive strategies to reduce risk.
• Many organizations lack the right policies and processes because they trust employees or haven't had a major issue yet, and too often such companies are experiencing fraud but failing to uncover it.
• According to ACFE, 5% of the typical organization's annual revenues are lost to fraud, and 86% of fraud cases involve asset misappropriation, including padding travel and expense claims.
• Measures include enterprise-wide risk assessment (EWRA), segregation of duties, authorization controls, reconciliation monitoring, automated monitoring and auditing, and fraud awareness training.
• Common expense frauds include: 65% of business travelers admitted to mischaracterizing personal expenses as business expenses; submitting fake documents; inflated claims; and multiple claims submission.
• 43% of fraud cases are identified through tips, half of those from employees.
• External fraud prevention requires cybersecurity and compliance, involving AML, KYC, PCI-DSS, HIPAA, SOX, and GDPR.
• SAP Concur says it integrates real-time data and uses AI to analyze transactions, helping businesses improve spend visibility, compliance, and reduce fraud risk.