Fraud and misuse up more than 200% despite pandemic-level spend
Oversight, the global leader in spend management technology, has released its July 2020 Spend Insights Report detailing the growing risk in corporate spend as organizations and employees continue to function in an unprecedented work environment. The third in a series of reports, July’s findings come after businesses closed the books on second-quarter business cycles and revealed the notable extent of spend risk in large organizations.
Read More: GlobalFintechSeries Interview with Christian Spaltenstein, Managing Director – Americas at AFEX
Among the key findings in July’s report:
- While Spend is Down, Risk of Fraud and Misuse has Doubled
A 63.5% decrease in T&E spend was counteracted by an alarming 206.7% increase in spend violations compared to pre-COVID spend.
- Among Spend Violations, Electronics Fraud Tops the List
More than half of the risk identified in Q2 2020 is tied to five particular spend violation types, with fraudulent purchases at electronic and computer stores ranking highest on the list.
- Home Office Setup Remains A Gray Area of Risk
From big-screen TVs to soundbars, employees are often bending the rules on equipment purchases that are intended to support home office setups.
The report, compiled from Oversight’s proprietary data and insights, also dives into new challenges, policy limitations, implications for business travel, and other key considerations for organizations as they balance business operations in the current times. In addition to findings, the monthly report offers suggested actions to guide companies in mitigating spend risk.
The report serves as a follow-up to Oversight’s April Spend Insights Report, which revealed how the pandemic swiftly impacted T&E expenditures starting in early March, and its May Spend Insights Report, which showcased how businesses grappled with new risk profiles as new “spenders” came on line with work-from-home arrangements.
Read More: Entrust Datacard Solves Evolving Identity and Encryption Needs with Latest PKI Platform
“The second quarter was a learning experience for businesses around the globe. Organizations grappled for the first time with an entirely new set of expenditures made by an entirely new group of spenders,” said Terrence McCrossan, CEO of Oversight. “The July Spend Insights Report clearly shows that spend levels and risk can be inversely correlated. In fact, even while spend is down for many organizations, spend risk has significantly increased. Our July spend report highlights this change and recommends actions that businesses can take today to implement more informed policies and targeted risk profiles.”
