Two full quarters into the pandemic, fraud, waste and misuse continue their sharp rise
ATLANTA – November 17, 2020 – Oversight, the global leader in spend management and risk mitigation technology, recently released its November 2020 Spend Insights Report. The November report details the ongoing rise in corporate fraud, waste and misuse despite overall spend reductions during this unprecedented work environment. A year-over-year analysis of Q3 spend data indicates that risk is accelerating, and that cash flow and controls continue to be significantly impacted. Fourth in a series, November’s report seeks to answer a simple question: why is risk rising dramatically against a backdrop of reduced spending?
Among the key findings:
A 77% decrease in travel and expense spend was counteracted by an alarming year-over-year increase in spend risk, which was three times higher than in Q3 2019.
Fraud activity violations increased 57% from Q2 to Q3 2020 to remain the most prevalent type of spend risk since the pandemic. Spend at electronic, computer and package stores triggered the majority of these violations.
From big-screen TVs to soundbars, employees often bend the rules on equipment purchases, payment and procurement methods as they work from home. Expenses submitted as office supplies and meals/restaurants accounted for more than 25% of spend violations.
“The reality is that the pandemic has brought a 12% increase in new spenders, and introduced new patterns of risk that need to be accounted for,” said Terrence McCrossan, CEO of Oversight. “These risks are not subsiding and organizations are beginning to recognize that their existing policies and audit processes are not sufficient for controlling these new behaviors. To combat this, we’re working with organizations on suggested changes to policy, adjustments to audit approaches, and other recommended actions to target these new risk profiles more effectively.”
For the full November Spend Insights Report and other best practices for addressing the changing dynamics of spend risk, visit https://explore.oversight.com/spend-insights-report-november-pdf.
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About Oversight
The world’s largest companies and government agencies trust Oversight to find and manage enterprise spend risk no matter where it resides. Oversight’s AI-powered spend management platform monitors and analyzes 100% of spend transactions, reducing audit effort and eliminating data silos. With full visibility into spend, Oversight customers find and prioritize spend risk that would otherwise go undetected. By identifying fraud, misuse and process breakdowns, Oversight reduces out-of-policy spending by 70% while maximizing audit efficiency and eliminating cash leakage. https://www.oversight.com/