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// Fraud scheme

Billing — personal purchases

An employee buys goods or services for personal use with organization funds, either by having a vendor invoice the organization or by using an organization card. The purchases are real; the business purpose is not.

Partly covered. The remaining analysis is planned.

Starter pack: Disbursement review, Expense and card review

Red flags

In the data

  • Purchases from consumer retailers or merchants with no business purpose
  • Ship-to address matches an employee address
  • Vague or missing line descriptions
  • Card purchases on weekends and holidays
  • Gift cards, electronics, and other easily resold items

Behavioral

  • Employee approves or reviews own purchases
  • New personal possessions that match items purchased

Internal controls

  • Approvers do not review line detail or receipts
  • No restriction on ship-to addresses
  • Card statements not reviewed by a supervisor
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