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Nearly a quarter of employees have committed expense reimbursement fraud, according to a survey by Emburse, an expense management platform. Of the 1,021 full-time employees surveyed, 24% said they had expensed personal expenses as business ones, and another 15% said they’d considered doing so. Survey respondents were at manager level or higher, or held the titles CPA or lawyer.
Expense fraud is the fourth most common type of occupational fraud in the US and Canada, according to the Association of Certified Fraud Examiners, and accounts for 11% of such fraud cases worldwide.
The Emburse survey also highlighted how slow reimbursements can burden employees. 40% of respondents said they’d incurred fees, like overdraft or late fees, on business expenses they'd charged to their personal debit or credit cards. 19% said they had to pay credit card interest because of late reimbursements, and the same percentage said waiting for reimbursements caused them to delay purchases or payments.
That’s troubling, given that many employees already feel financially strapped; 62% of respondents said they were “somewhat” or “very” worried about their finances.
Slow reimbursements can cause “tension between employees and finance departments,” Emburse CFO Adriana Carpenter said in a press release. To address the problem, she recommended automating expenses (naturally) and using corporate cards, but also having clear policies.
“Strong corporate spend and virtual card policies keep employees from having to dip into their personal finances,” Carpenter noted.