No wonder they’re not clamoring for a raise: Some employees admit to padding their expense reports by up to 25% on a regular basis.
While you hope that none of your company’s employees would pull any of these stunts, desperate times drive some folks to desperate measures. Years without pay increases and personal financial woes may have even previously above-board staffers considering some less-than-honest moves.
Expense reports provide the perfect opportunity.
And just like some of the reasons for expense padding are new, so are some of the scams. Keep an eye out for the following five expense padding scams afoot now.
- ‘Tipping’ the scales in their favor. One of the most common frauds: adding in tips that were already included as part of the meal price. These days, restaurants often automatically add the gratuity for parties of as little as six people. Many business dinners fall in that category, and an additional 20% on a dinner bill for six is a sizeable “leftover” to take home.
- The gas station switcheroo. You know how many people leave their receipt in the gas pump? A less-than-honest person could take that substantiation instead … if it’s for a higher total than she paid. No worry about questions — the receipt will have a location and date stamp that match their travel plans.
- Winning the airline wars. Employees who book their own air travel for business trips have another opportunity to defraud your company. They book a refundable fare early, then watch for a new lower rate to pop up. Employees cancel the first flight, book the cheaper one, then submit the receipt for the initial, more expensive, airfare.
- The last minute hotel checkout discount. An employee goes on a totally legit business trip. Checkout time comes and the employee gets the hotel bill, looks at it and then mentions a AAA discount he’s entitled to. The hotel makes the adjustment, applies the discount and prints a new bill. Guess which one gets turned into your A/P department?
- Fake receipts 2.0. Here’s one site worth blocking from all employee computers: http://expenseasteak.com/ You’ve probably heard about this one – the site appeared two summers ago. All a less-than-honest person has to do is enter a fictitious total and click a button to have a series of authentic-looking receipts generated. Notice charges to Office Supply Hut or The Panini Experience, and your radar should go up.
Any other new scams you’ve seen lately? Protect your peers – share them here.
