When a person commits fraud with a purchasing card (P-Card), by definition, it is a deliberate act. The P-Card holder knows that his or her usage of that P-Card is wrong—perhaps even criminal. Yet, they go through with the purchasing card fraud anyway. And often, such perpetrators will go to extreme lengths to hide their fraudulent actions.
So how does a business nip fraud in the bud? When a P-Card user is hell-bent to commit a crime, is it even possible?
It is… but it takes intentional, proactive steps by company management to combat fraud at its roots. Here are a few things you can do to help prevent your company from being a victim of P-Card fraud.
Encourage diligence from others
Often, when fraud is initiated, more than one person knows about it and is involved in the act. And despite their best efforts, the fraudsters don’t necessarily go undetected by those around them.
Silence, in such a situation, is deadly to the healthiness of a company’s P-Card system. Employees need to be encouraged to look out for such fraud, and then step up and speak up regarding any illegal use they notice by other cardholders. This is accomplished most successfully by:
- Listening to what the reporting employees have to say
- Following up on what they report
- Holding accountable those found responsible for the fraud with set consequences
- Communicating the end result candidly to all company employees
- Keeping the employees feeling safe and secure against any retaliation
Don’t forget your merchants
If your P-Cards are used with the same merchants on a regular and continuous basis, cultivate a good working relationship with them as well and keep the lines of communication open. Let them know your policies and procedures as they refer to those merchants, so they can be vigilant against any possible attempts at fraud. Together, your collaboration will help keep fraud at bay.
Educate all involved
Communicating what is expected from each cardholder—and what might happen if those expectations are not met—is extremely important when fighting fraud at its roots. As part of your training, you can make it clear that your company has a system in place that monitors all P-Card usage, so that no employee is ever under the impression that they can make fraudulent purchases without being detected. If a P-Card user thinks he or she is “being watched,” the risk of fraud can be reduced.
Initiate Card Integrity’s programs for risk reduction
Card Integrity’s programs work together to help you reduce the risk of fraud. Use the Training-Wise service to train your employees with exactly what you want and need them to know to keep your P-Card program successful. We create customized online training tailored to your specifications.
You can use this training in conjunction with our receipt review solution—Receipt-Wise—to confirm that your P-Cards are truly being used correctly, according to your standards. Any non-compliant behavior is identified and reported to you.
Card Integrity solutions are a great way to mitigate risk and to secure confidence in your card program. To initiate your own proactive programs to reduce the risk of fraud, call us 630-501-1507 or click HERE to contact us via our website!