Business travel should be about shaking hands, closing deals, and attending important conferences. But for a few opportunistic employees, it’s a golden ticket for something far less admirable: travel reimbursement fraud.
We are fraud investigation experts at Diligence International Group who can quickly uncover reimbursement fraud. Let’s walk you through some instances of travel reimbursement fraud and give you some insight and tools that could help tighten your policies.
The Mystery of the Triple-Dip Meal
Imagine this: an employee submits a hotel bill for reimbursement. On that bill, you notice charges for meals and drinks. Nothing unusual. Well, dig a little deeper, and you'll find that same meal appearing elsewhere on their expense report under a separate entry. Oh, and would you look at that—they also got a per diem for meals before the trip. That’s one meal, paid for three times over.
We’ve encountered this type of thing more than once in our corporate investigations. Without regular audits, these schemes can go unnoticed for years. Trust us; employees get creative when they think nobody’s watching.
Blank Receipts
One memorable story involves a restaurant handing out blank receipts to a regular customer. What did this employee do with them? Share the wealth—passing those blank forms around to colleagues who "needed" receipts to submit expenses. Just fill in the details, and voilà! Instant reimbursement.
In other cases, we’ve seen employees alter the figures on legitimate receipts, turning a modest $12 meal into a $72 feast. With a tiny pen stroke, the company suddenly foots the bill for a gourmet experience that never happened.
Airfare Fraud at Its Finest
Then there’s airfare fraud—a devious and surprisingly common local and international scam. Here's how it works: An employee books a business class ticket using the company card. Once reimbursed, they cancel the ticket and buy a super-saver fare instead, pocketing the difference. Sometimes, they don’t travel at all but keep the refund and the reimbursement.
In a particularly outrageous case, an employee claimed to have attended an out-of-state conference. Yet the meal receipts they submitted told a different story—they were timestamped at a restaurant nowhere near the conference venue. Essentially, this person received a fully paid vacation courtesy of their employer.
Why Time Matters in Fraud Investigations
One major challenge in uncovering travel reimbursement fraud is timing. Hotels, for instance, routinely purge their records within six to twelve months, but this timing is based on the hotel's location.
If you’re tasked with investigating expenses from several years back, you may hit a dead end when trying to obtain itemized hotel records. That’s why frequent audits are crucial. The fresher the data, the easier it is to spot irregularities.
For example, in a recent audit, we found detailed hotel receipts showing charges for meals shared with a spouse and children—charges buried in a bill the employee hoped no one would scrutinize. If that investigation had happened a year later, the hotel might not have had those records, and the fraud could’ve gone undetected.
Prevention is the Best Weapon Against Fraud
Stopping travel fraud isn't just about catching wrongdoers—it's about building a system that makes fraud challenging to perpetuate. Regular audits, monthly expense reviews, and clear policies can prevent headaches.
Businesses that ignore these safeguards are leaving money on the table. It's like locking your front door but leaving the window wide open. You need a complete security system that doesn't just react to fraud but actively deters it.
Partner With Diligence International Group to Place a Ban on Travel Reimbursement Fraud
At Diligence International Group, we’ve seen it all. We understand that no company can afford to let these scams slide, so we’re prepared to help you investigate and stop criminal spending. By partnering with our experienced investigative team, your business protects its bottom line and sends a clear message: travel reimbursement fraud won’t fly here.
So, let’s work together to close those loopholes. The cost of fraud isn’t just financial—it’s a hit to your trust and integrity as a business. And that’s a price no company should have to pay.
