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Mileage Fraud in the Workplace

By Danielle Lackey January 17, 2017

Categories: Industry Trends

Employee integrity within the workforce is something desired by all, but sometimes it is inevitably unattainable.

As it turns out, one of the most common examples of employee theft happens to be mileage fraud. In fact, mileage fraud occurs even more frequently than employees over reporting tips, inflating the cost of items beyond their true price or submitting expenses for returned purchases.

The Facts of Mileage Fraud

According to a Chrome River Survey, roughly 5% of respondents revealed that they had committed some version of expense fraud. At first glance, this percentage may not appear all that astounding, but just think: if even 25 of your 500 mobile employees are falsely reporting mileage, there is no way to justify this as being beneficial for your organization.

You may be thinking, “Perhaps employees lack a certain understanding of the process and are just making honest reporting mistakes, could this be the case?” Well, the short answer is yes. This could be the case for some, but there exists a much larger issue at hand.

The Root of the Mileage Fraud Issue

Part of why this phenomenon appears to be a recurring theme is the old, nation-wide way of reimbursing mileage expenses. The vast majority of companies continue to require their mobile employees to submit their mileage reports via paper mileage logs or Excel spreadsheets. These processes allow employees to create their own destiny. They have free rein to submit reports at their personal discretion. This can lead to both inaccuracy and unearned cash in the pockets of your workforce. Not only can this be extremely costly for your company, but also for your employees if the IRS decides to come knocking.

Advancing With Automation

In order to reduce your organization’s risk of mileage fraud, automation should be a top priority. As documented by a Forrester Research survey of finance leaders, 73% of respondents confessed they would be re-evaluating and modifying their T&E systems within six months. Simply put, the purpose of technology is to make people’s lives easier. As it turns out, mileage reporting and reimbursement should be no different.

With automated mileage tracking and reporting technology, your organization will immediately gain more visibility and insight into expense reports. That allows your company to reduce costs due to mileage fraud. Even further, your company could benefit tremendously by opting for IRS compliant, fixed and variable rate reimbursement programs.

Get the Mileage Fraud White Paper

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