18% of 18-34-year-old males have made fraudulent claims, new research reveals.
Around one in 20 business travellers has confessed to submitting a fraudulent expense claim, according to new research from Chrome River.
The figure has remained static since the expense management company first conducted the survey in 2016. What is interesting is the differences in the figure of self-reported fraud by gender and age, as shown in our chart below.
The survey also reveals that fraud is more prevalent in smaller companies. People who work for organisations with under 100 employees commit expense fraud at a rate of 8.4%, compared to 5.6% for those at organisations from 100-999 employees, and 4% for those who worked for larger organisations, of more than 1000 employees.
Chrome River went on to ask respondents why they committed fraud. Both men and women said the fraudulent claims were largely to cover for other expenses they were unable to claim. Other reasons are shown in the chart below.
So what can companies do about this?
The survey reveals that of those submitting fraudulent claims, only 15% have ever been caught.
There are benefits to introducing both people and technology into the claim process. Those who submit expenses manually are also more likely to commit fraud, the report says. Some 9.1% of employees who submit expenses with hard copy receipts and spreadsheets reported fraudulent behaviour, compared to 7.1% for those who give receipts to a secretary or administrative staff, and 4% for those who use automated expense software.
The gender and age breakdown of fraud may also give pause for thought. If you are not checking 100% of claims, perhaps it is time to focus on those age and gender demographics that are most likely to be ripping off the company.
Young men may need to be more careful.