Expense report

Expense Fraud: One Strike and You’re Out

Gregoire Serre

Gregoire Serre

Financial analyst

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Plenty of stories are passed around the workplace of employees who have pushed the boundaries when claiming business expenses. In some instances, the employee has made an honest mistake. In other cases, they deliberately tried to submit a questionable receipt “to see what happens.” A few employees develop schemes to defraud the company intentionally. 

Technology has become more advanced. Integrated business payment and expense platforms have become more common, which means dishonest employees have fewer opportunities to steal from their employers. The technical control available through the new expense management software makes it much easier to combat employee fraud. 


Examples of Employee Fraud



Employers know the types of scams employees try to put over on them. These expense scams are not new, and many companies are now using expense management software to combat fraud. 



Made Up Expenses



Employees who file claims for fake expenses risk being fired for dishonesty. Some common examples of this type of employee fraud are:

  • Submitting a claim for purchases never made, such as for office supplies.
  • Claiming a business lunch when it was a personal one.
  • Submitting false receipts generated with online templates.
  • Filing an expense for an expense that was never incurred. 
  • Double billing, where two employees each obtain a receipt for the same expense. Each employee then submits a claim. 
  • Employees submit claims for expenses without receipts. Some companies have a policy where they don’t require a receipt for expenses below a certain amount. Under tax laws, the company must request receipts from employees and keep them on file. 



expense report template



Employee Fraud a Serious Matter



It’s easy for people to think that employee fraud is a victimless crime since a dishonest employee is only stealing from their company. But this is not the case.

Stealing from a business has consequences for the business owners and the other employees. 

  • It cuts into the company’s operating funds, which pay everyone’s salary, including dishonest and honest employees. 
  • It would be a myth to conclude that all business owners are well off. It can take several years before a business turns a profit. Business owners pay their investors, employees, and creditors before paying themselves. 
  • Suppose there are enough instances of employee theft. In that case, the business may have to raise its prices to continue turning a profit. Customers may not want to pay the higher rates, resulting in lower sales. The company may have to lay off workers in response. The business may even fold. 



Expense Management Software Reduces Employee Fraud



Expense management software can reduce the number of times employees submit claims without receipts, stating the receipt is lost, or they did not obtain it. The employer can institute the use of an expenses app that instantly photographs receipts at the time of purchase. The employee loses the opportunity to say that they have lost the receipt. 



Mooncard is your Complete Payment Solution



With a Mooncard Visa, employees pay for business expenses with a company corporate card. The Mooncard app takes a photo of the receipt immediately every time the employee uses the card. Employees don’t have to keep paper receipts, which become bulky and can become misplaced or lost. 


Mooncard integrates easily with your existing accounting software. Contact us to book a demo today.

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Gregoire Serre

Gregoire Serre

Grégoire Serre has been a financial analyst at Mooncard since 2021. He previously worked at Ernest & Young and Heineken, gaining solid experience in the finance and audit sectors. He is passionate about economics, accounting and entrepreneurship.