Billing — non-accomplice vendor (overbilling, pay-and-return, duplicates)

The employee uses a real vendor that is not part of the scheme. Methods include resubmitting a paid invoice, inflating an invoice, or deliberately overpaying or double-paying the vendor and then intercepting the refund (pay-and-return).

Partly covered. The remaining analysis is planned.

Starter pack: Disbursement review, Procurement integrity

Red flags

In the data

• Invoices from the same vendor with near-identical numbers and the same amount
• Same invoice paid twice, often once by check and once by EFT
• Vendor credits or refunds that never appear in cash receipts
• Invoiced unit prices above contract or PO prices
• Spend with a vendor rising without a change in volume or scope

Behavioral

• Employee asks vendors to send refunds or statements directly to them
• Employee handles vendor statement reconciliations alone

Internal controls

• Duplicate checks run only on exact invoice numbers
• Vendor statements not reconciled by someone independent of AP
• Refunds received are not logged centrally