Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

An effective program for combating employee expense reimbursement fraud
should include, among others, the following policies:
■
Accept only original supporting documents.
■
Require written explanation and replacements for lost original
receipts. Closely examine excessive incidents of “lost receipts” and
refuse to reimburse the expenses.
■
Require timely submission of fully supported employee
expense reports.
■
Have the employee’s business unit supervisor or manager conduct
a prepayment review of the employee’s expense reports and
required documentation.
■
Require an additional review of “corrected” employee expense reports.
■
Conduct an annual internal audit of employee expense reports and
related company credit card use.
Payroll Fraud
It is often impossible for company management to know every employee
and their pay status. Furthermore, payroll processes can often make it
possible for false payments to be made. Common payroll fraud schemes
include, among others, payments to:
■
Nonexistent employees (“ghost” employees) added to the company
payroll by someone with the authority to add new employees.
■
Employees for hours not worked (falsified time reports).
■
Employees for unauthorized salary/pay rates, overtime, or bonuses.
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