Zach inflated the price on a travel receipt and sought reimbursement. This is an example of what type of fraud scheme?

• A. Mischaracterized expense scheme
• B. Overstated expense scheme
• C. Personal purchases with company funds
• D. Multiple reimbursement scheme

Answer: (B)

When someone submits an expense reimbursement, the fraud revolves around the amount being claimed. Inflating a travel receipt means asking for more money than was actually spent, which fits the idea of an overstated expense scheme. The scam relies on the misrepresentation of the cost to receive a larger reimbursement than deserved, rather than misclassifying the expense or using funds for personal items.

Think of mischaracterizing expenses as labeling a personal charge as a business expense or choosing the wrong category—not primarily about the dollar amount. Personal purchases with company funds describe using company money for yourself, not about padding the claim. A multiple reimbursement scheme involves submitting the same expense more than once or seeking duplicate reimbursements, not about inflating a single receipt.