According to data from the Association on Certified Fraud Examiners, expense reimbursement fraud accounts for 17% of all business fraud. A 2018 Chrome River survey identifies expense reporting procedures as a direct influence on the likelihood that employees will commit business travel fraud.
Inspector will allow users of expense management and accounts payable automation leader, Emburse’s vast offering of expense automation solutions, including Abacus, Captio, Certify, Chrome River, Nexonia and Tallie, to detect unauthorised travel and expense spend. Inspector will supplement Emburse’s expense solutions’ existing fraud prevention and detection capabilities by using machine learning to automatically detect when a transaction looks suspicious.
Unique among auditing tools, Inspector takes a holistic look at the data and understands the linkages between employees, activities, and expenses – especially important for meetings and events and when assistants book on behalf of others.
Without needing to define a large amount of policy rules, Inspector’s models use both supervised and unsupervised machine learning methods to learn the characteristics of undesirable transactions and then identify them. Inspector identifies transactions by using predictive models that learn from previously flagged transactions, as well as by using an open-ended analysis to intelligently identify previously undetected transactions that may point to fraud.
“Often risky, fraudulent or problematic transactions only happen due to a lack of oversight,” said Keesup Choe, CEO of PredictX. “This is expected as aggregating this data and defining policy rules is time-consuming, and we are only human. Inspector is an excellent example of how AI can reduce business risk. Those who adopt AI solutions have the chance to get ahead of things like undesirable transactions and improve their travel and expense management for the better.”
“The majority of expense fraud is opportunistic, where employees take advantage of an organisation’s lack of controls. Emburse’s solutions already incorporate a wide range of policy and technology-based fraud prevention capabilities, which succeed in eliminating the vast majority of employee expense fraud,” said Nord Samuelson, President of Emburse. “However, there is still a small segment of employees who are determined to commit fraud, and they often create sophisticated schemes to conceal their crimes. Using Inspector’s machine learning-based analytics to identify these transactions and automatically flag them to approvers removes the need for expense auditors to spend countless hours poring over spreadsheets to spot potentially fraudulent spend. Inspector adds another tool to an organisation’s capabilities in eliminating expense fraud.”