T&E Fraud, Misuse & Waste

Detect the bad apples & make an impact

on your T&E spend program.
 Bad apples stay rotten.
75.6% of Employees committing Expense Report Fraud are
engaged in another form of Occupational Fraud
Source: ACFE

10% people cause nearly 100% of the high risk issues

Source: Oversight Spend Analysis Report Volume 2 Fall 2015

In the U.S. 250,000 employees cost business

$3B from 48 million transactions

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 Troubling T’s of Managers
Time Training
Managers spend nearly 10 minutes reviewing It’s just too easy to click on the “Approve”
each expense report, may miss the details button without proper review

Trust Total Picture

Managers trust team members too Hard to identity patterns over time
much, so will approve more often when only looking at a sample

Intuition
Hard to spot unusual transactions

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 Fraud Example: Expensing Personal Purchases

Items that are intentionally concealed

– Excessive padding
– Untraceable Out-of-Pocket Spend
– Intentional duplicate reports
– Personal spend submissions
– Misclassifications of expenses
– Fake purchases and receipts

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 Waste Example: Duplicate Mileage Submitted
Extravagant or unnecessary spending
– Excessive entertainment
– Donations, gifts, sponsorships
– Unusual mileage submissions
– Overstated expenses
– Unintentional duplicate reports

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 Misuse Example: Circumventing Receipt Limit

T&E Policy Violations

– Inappropriate venues
– Purchases that violate policies
(i.e. liquor stores)
– Hiding large purchases across reports
– Mischaracterized expenses

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 Finding the bad apple.
Gain visibility and focus on the high
risk activity such as:
- Suspicious transactions
- Non-compliant behavior patterns
- Process breakdowns

© 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.

 Curating the Data
Amex Benchmark

Visa/MC Geo Code

TrustSphere Concur iExpense

© 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.

 Insights On Demand
Professional Service
Templates + Tools

Business Intelligence tools

+ Analytic Components
• Multi-dimensional analysis
• Intelligence & machine learning
• Resolution capabilities

© 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.

 Multi-Dimensional Analysis
1 Acquire 2 Analyze 3 Resolve
Third Party Boolean
Data Chaining
Organization Data Format
Outlier Recurrence
Enriching Temporal Reasoning
Meta

Data
Statistical
Aggregation Case Management
Link
Bayesian

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 Alerts for High Risk Transactions

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 Impact of Artificial Intelligence

© 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.

 Customer Example – Industrial
• Reduced review effort by 82%
• Eliminated Manager Approval
• Enhanced Fraud Detection
– Went from firing 1 or 2 people/quarter to 5 or 6 people/week

2016 APRIL

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T&E Fraud, Misuse & Waste
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