The Business Pass has been designed to eliminate the need for expense reports and paper receipts. Fraud in expense report can happen in the following ways:
Employees submit personal expenses under the category of business expenses. Such sort of mischaracterized claims are common as there is usually no way of categorizing a claim by only looking at the submitted receipt.
These claims are bogus receipts that appear genuine. The fictitious are with computer-generated on handwritten in receipt books that can be commonly purchased from printers across the county.
In these cases, the employee inflates the cost of a legitimate expense. This can be done by changing the handwritten amount or showing a larger tip than what was actually paid.
This is a case where an employee remits the same receipt for an item more than once. Here, the finance teams may approve duplicate payments, if not careful about accepting expense claims. A widespread example of this is when an employee submits two bills where expenses from one are included in the other.