Expense report fraud is a serious and costly problem. Over 60% of fraudulent purchases are for $50 or more, and over 40% are for $100 or more. With one in ten line items potentially fraudulent, your business could be losing tens of thousands a year. Until recently, preventing and catching fraud has proven difficult, time-consuming, and costly— but it doesn’t have to be. Prevention and detection can even be easy, as long as you have the right tools.

Fraud prevention

Whether employees are falsifying expenses, inflating expenses, or expensing things that don’t qualify for reimbursement, you need a way to detect fraud. Here’s the first thing you need to do: get company cards for each employee that makes purchases. While using a company card puts you on the hook for any purchases they make, it also makes it significantly easier to catch fraud attempts. Since you have access to the account, you can compare expense totals against the expense report to see if they match. And if you’re getting company cards, Divvy makes it simple. Every single card on Divvy is absolutely free. Get as many as you need without worrying about a monthly fee or any upfront costs.

Next, require receipts for everything (or at least everything over a certain threshold, like $25). When using Divvy, you don’t actually need to keep receipts. Employees can take a quick picture at the point of purchase, tie it to a transaction, and that’s it. You’ll have the receipt on file, and you won’t need to have anyone track it down at the end of the month.

If you’re worried about people trying to get reimbursed for things they shouldn’t, Divvy avoids this problem almost altogether. Each Divvy card can be pre-loaded with a dollar amount. Let’s say you have an employee taking a business trip. You’ve estimated the trip will cost $4,000; the budget owner (whoever is in charge of the budget for an employee) will simply put four grand on the employee’s card in advance. If the employee needs more funds while they’re on the trip, they can request more at any time. Once a request is made, it will instantly notify the budget owner, who can then approve or decline the request. No more surprise expenses at the end of the month and fewer opportunities for employees to commit fraud.

Divvy helps eliminates fraud

We’ve gone over several ways Divvy can help you prevent fraud, but with Divvy, you don’t just track purchases, you track them in real-time. And you don’t just streamline the expense report process, you virtually eliminate it by automating the whole system. You can see what’s being spent as it happens. This gives you greater insights into your spend and a much better opportunity to catch fraud as it happens.
We’ve mentioned our physical card before and how they can be pre-loaded with funds, but they truly are our secret fraud prevention weapon. We can issue cards to your employees that you control, meaning you can control the money that’s available to each employee at any given time. So when your employee has a physical card, they don’t have huge card limits that leave your company exposed. Did we mention Divvy is 100% free? It is.

If Divvy sounds like something that could help your company, contact us to set up a free demo, and see just how easy it is to prevent employee credit card fraud yourself.