Expense-Report Fraud Appears to Be on the Rise
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Access to affordable credit helps me pay my employees, but I don't really need it. Inflation is killing me. But who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill. See? Banks and credit unions help small businesses make payroll. This bill would cut the vital resources they need. While increasing megastore profits. They deserve it, don't they? Tell Congress, stop the Durbin Marshall money grab for corporate megastores. Paid for by the Electronic Payments Coalition.
Here's your Money Briefing for Thursday, November 21st. I'm J.R. Whelan for The Wall Street Journal. On your expense report, you might include things like your cell phone bill, airfare for work travel, or meals with clients. You're supposed to enter the amount accurately down to the penny. But more people are trying to push unauthorized purchases past the accountants. And in some cases, it's more than just fudging the numbers.
One employee disguised his mortgage lender as a legitimate business vendor and got away for a time with paying the mortgage on the company credit card. I got a story about somebody who bought $2,500 worth of Christmas presents for his family on the company tab. I got a real kick out of the attempt to purchase an RV on the company credit card.
So what happens if you get caught? We'll talk to Wall Street Journal On The Clock columnist Callum Borshers after the break.
Access to affordable credit helps me pay my employees, but I don't really need it. Inflation is killing me. But who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill. See? Banks and credit unions help small businesses make payroll. This bill would cut the vital resources they need. while increasing megastore profits. They deserve it, don't they?
What examples show expense-report fraud is on the rise?
Tell Congress, stop the Durbin Marshall money grab for corporate megastores. Paid for by the Electronic Payments Coalition.
Expense report fraud appears to be on the rise. Wall Street Journal On The Clock columnist Callum Borschers joins me. Callum, every company's policy is different. What sorts of things are typically allowed to be included on expense reports?
Typical categories would include business travel, of course, your flights. It could be the taxi when you go in from your hotel to the airport, business meals. And depending on how high ranking you are in the organization, you may be authorized to use your card online. To make large purchases of supplies or consulting services. And that's where you can really get some of these high ticket fraudulent items if you have a high ranking person who is fudging the receipts somehow.
Do hybrid work schedules contribute to the expense abuse?
This is a long running concern of managers that when employees are out of sight, it's a little bit harder to keep tabs on what they're doing. And there is little doubt that there are certain kinds of expense fraud that increased in the hybrid and remote environment. Examples would be a home office allowance that some employees get. You could maybe use that money for unrelated home improvement expenses. That was one that SAP told me about. They make the popular expense reporting software. concur. And there can be little things, JR. I got a chuckle out of one story of an employee who used to work in an office where there was free coffee, you know, and he figured I'm entitled to free coffee on the company tab.
So when he was working at home, apparently he would just make a daily Starbucks run and expense the coffee to the company and then even tacked on the mileage for driving to and from the coffee shop. Not a high dollar amount, but those are the kinds of things that sometimes people have tried to pull in the hybrid or remote environment.
Yeah.
You spoke to executives at several companies. What other types of things are employees putting on the company card and how are they dealing with it?
The range really just gobsmacked me, JR. I mean, one employee disguised his mortgage lender as a legitimate business vendor and got away for a time with paying the mortgage on the company credit card.
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