The document discusses the prevalence of travel and expense (T&E) fraud, misuse, and waste in organizations, highlighting that a small percentage of employees significantly contribute to financial losses. It emphasizes the importance of identifying suspicious transactions and non-compliant behaviors to improve fraud detection and reduce review efforts. The use of advanced analytics and machine learning is suggested to enhance visibility and streamline processes in managing T&E spend programs.

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

2. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

3. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

4. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

5. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
Extravagant or unnecessary spending
– Excessive entertainment
– Donations, gifts, sponsorships
– Unusual mileage submissions
– Overstated expenses
– Unintentional duplicate reports
5
Example: Duplicate Mileage SubmittedWaste

6. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

7. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

9. © 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

10. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
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

11. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
Alerts for High Risk Transactions
11

12. © 2017 Oversight Systems. All Rights Reserved. Confidential & Proprietary.
Impact of Artificial Intelligence

13. © 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
X
X X
X
X X X X X X X
X X X X X X X
X X X X X X X
X X X X X X X
X X X X X

14. T&E Fraud, Misuse & Waste
Find out what Insights On Demand could do for
your organization. Schedule a personal demo.
Request Demo