T&E Fraud, Misuse & Waste are things every travel manager fears. In the U.S. 250,000 employees cost business $3B from 48 million transactions, and 75.6% of employees committing expense report fraud are engaged in another form of occupational fraud. Learn about the troubling T’s of managers and find out how to detect the bad apples to make a positive impact on your T&E spend program.

1. T&E Fraud, Misuse & Waste
Detect the bad apples & make an impact
on your T&E spend program.

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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
2
Bad apples stay rotten.
In the U.S. 250,000 employees cost business
$3B from 48 million transactions

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Time
Managers spend nearly 10 minutes reviewing
each expense report, may miss the details
Trust
Managers trust team members too
much, so will approve more often
Intuition
Hard to spot unusual transactions
Total Picture
Hard to identity patterns over time
when only looking at a sample
Training
It’s just too easy to click on the “Approve”
button without proper review
Troubling T’s of Managers

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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
4
Example: Expensing Personal Purchases
Fraud

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Extravagant or unnecessary spending
– Excessive entertainment
– Donations, gifts, sponsorships
– Unusual mileage submissions
– Overstated expenses
– Unintentional duplicate reports
5
Example: Duplicate Mileage SubmittedWaste

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T&E Policy Violations
– Inappropriate venues
– Purchases that violate policies
(i.e. liquor stores)
– Hiding large purchases across reports
– Mischaracterized expenses
6
Example: Circumventing Receipt Limit
Misuse

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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

8. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
Curating the Data
Amex
Visa/MC
iExpenseConcur
Geo Code
Benchmark
TrustSphere

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Insights On Demand
Professional Service
Templates + Tools
Business Intelligence tools
+ Analytic Components
• Multi-dimensional analysis
• Intelligence & machine learning
• Resolution capabilities

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Multi-Dimensional Analysis
Case Management
Boolean
Recurrence
Format
Outlier
Chaining
Temporal Meta
Reasoning
Bayesian
Statistical
Aggregation
Link
1 Acquire 3 Resolve2 Analyze
Organization Data
Enriching
Data
Third Party
Data

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Alerts for High Risk Transactions
11

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Impact of Artificial Intelligence

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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
X
X X
X
X X X X X X X
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X X X X X X X
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14. T&E Fraud, Misuse & Waste
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