A BETTER WAY TO STOP PURCHASE CARD FRAUD IN YOUR ORGANIZATION

P-CARD SOLUTION

P-CARD SPEND IN NORTH AMERICA

Source: RPMG 2014 Purchasing Card Benchmark Survey

$245 BILLION

$377BILLION

2013 2018

62% projected increase by 2018

MISUSE IS GOING UNDETECTED

Sampling is Unreliable.

Audit sample

MANUAL PROCESSES ARE TEDIOUS AND UNRELIABLE

Companies that don’t effectively manage their P-Card programs risk

the loss of assets and damage to their reputation.

WHY CONTINUOUSLY MONITOR P-CARD CONTROLS?

Complete view of P-Card activities

One View

Apply detailed spending &

usage policies

Control

Stop fraud before it affects

bottom line

Prevention

Validate all transactions

before payment

Accuracy

Risk to reputation is

minimized

Assurance

MISUSE AT FLORIDA UNIVERSITIES

• A Florida International University (FIU) prof used a school credit card to buy over $5,000 worth of items, including an MP3 player, a wireless reading device and United Airlines' Red Carpet club membership

• An administrative assistant in University of Florida's oral history program submitted receipts for books for a " WWII project." But the books weren't about a world war. They were from Weight Watchers

• An information technology specialist at UF made more than $13,000 in unauthorized purchases, altering receipts to disguise a Blu-ray disc player, video games and Xbox gaming currency

FIU shrank it’s P-Card program and reduced number of cards issued by 22% due to a lack of confidence in the program

BLUE SHIELD CTO FIRED FOR FRAUD

• Insurance company Blue Shield of California fired Tara Reid's boyfriend, chief technology officer Aaron Kaufman, for extravagant spending, according to the Los Angeles Times

• The tech executive reportedly charged more than $100,000 on his corporate credit card, including trips with the "Sharknado" actress, such as $17,491 during a vacation in Florida

The CTO’s relationship with a celebrity increased media exposure to Blue Shield’s inability to detect card misuse until

it totaled over $100,000

PENTAGON CARDS AT ADULT CLUBS

• Defense Department credit cards were used to charge personal expenses at casinos and “adult entertainment establishments” including a Larry Flynt’s Hustler Club and the Sapphire Gentlemen’s Club in Las Vegas, according to the Pentagon’s inspector general

• An audit found that military and civilian personnel used the cards, intended for authorized government travel, to charge $952,258 at casinos and $96,576 at adult clubs

The abuses come despite the Government Charge Card Abuse Prevention Act of 2012 which requires periodic audit

by inspectors general

EVERYTHING IS MANAGEABLE

You can face risks head-on and manage complexity

You can catch issues early and deal with them effectively

OpportunitiesYou can protect you company’s resources and reputation while growing your P-Card program.

P-CARDS AND CASEWARE ANALYTICS

P-Card Management

Human Resources

Accounting

Card Issuer

Supplier

Card Holder

Transactions

Employee Data

Reconciliation

ExceptionsPurchase

Invoice

P-CARD CONTROLS AND ACTIVITIES

CARD ISSUANCE

CARD ADMIN. & ANALYSIS

PROGRAM PERFORMANCE

SPENDING PATTERNS

TRANSACTION POLICY VIOLATIONS

Inactive/On Leave employee using

card

Elevated liability

Ghost cards

Duplicate payments through AP & card

Manager review

Employee watch list

Non-preferred vendor spend

Employee advises purchase is

personal

Declined transaction report

Year-end usage

Split purchases

Unusual spending patterns

Cardholder – merchant match

Keyword search for non-compliant

purchases

Cash advance/financial services

DEMONSTRATION

P-Card Manager

• Accountability enforcement• Consistent and precise

remediation• Automated Follow-up

Data Analyst

• Holistic view of Purchase Card Program

• Insights on Internal Control strengths and weaknesses

• Investigation of Purchase Card abuse

“The real value of using data analytics is that it allows you to see fraud schemes that would be impossible to detect manually.”

Phil Hurd, CISSP, CISA Georgia Institute of Technology

CASE STUDY: GEORGIA TECH

Automated, scheduled analysis of

transactions

Fast resolution of control breakdowns

Detected millions in fraudulent, misuse

and abuse purchases

Uncovered $350K during initial phase

SO MUCH TO GAIN….

Uncover misuse and abuse

Recover lost funds

Resolve issues

Reduce exposure

Increase compliance

Increase confidence and support

Improve behavior

CASEWARE ANALYTICS SOLUTION

Gain peace of mind knowing P-Card controls are working effectively

Confidently grow your P-Card program

Turn Key• Monitor specific risks• Based on best practices and industry trends• Easy to adjust metrics

A BETTER WAY TO STOP PURCHASE CARD FRAUD IN YOUR ORGANIZATION

P-CARD SOLUTION

Visit casewareanalytics.com Email connect@caseware.com