Where is Fraud Likely? - Part 6

You Can Buy a Receipt Book at a Stationary Store

Just because a receipt is attached to a request for reimbursement, it does not necessarily make the receipt valid. An entity hired us to investigate a situation where an employee was being reimbursed for a substantial number of business means on a regular basis.  The company policy required the individual to submit credit card receipts for any mean over $25 and a stub from the restaurant for all meals under $25.

We observed that the employee received reimbursement for many meals just under the $25 cut off.  All of these meals had a stub for the amount.  Most of the numbered stubs did not contain the restaurant name.  We took the stubs and sorted them by type.  We concluded that the individual was buying packs of 100 receipts from the local stationary store.  He was then pulling stuns at random and attaching then to his requested reimbursement form.  Since he was pulling stubs at random, the sequence numbers were not normal (e.g. receipt number 80678 was used before receipt number 80632) and the fraud was revealed.

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