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Need help - credit card fraud?
a guy at work has used his work credit card to purchase personal items and can not provide receipts for other items purchased!! the company would like to press charges.. how would we go about this and who would we contact? will the police be interested?
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There is no deceit involved here on the part of the employee. Therefore there is no fraud.
What I understand from the information you have provided is that a worker (an employee?) used a work credit card for purchasing "personal" items and receipts can't be provided for "other" items purchased.
PERSONAL ITEMS
If the company's policy is not to permit the use of the card for buying products for personal use (e.g. home shopping), then the worker has breached the company's policy which is potentially a breach of the terms and conditions of employment but you need to look at the terms and conditions of employment.
In these circumstances, disciplinary proceedings may be started against the employee (pursuant to what is laid down in the company's terms and conditions of employment). These proceedings may result in a written warning, or if considered an act of gross misconduct, could lead to termination of employment. But there can be no "instant" dismissal because the worker is entitled to a fair hearing and for the company to comply with law as regards wrongful and unfair dismissal.
Action can be taken to recover monies used on the corporate card. The employee may make lawful and reasonable deduction from the worker's salary.
In terms of criminal proceedings, there is no deceit by the employee (the employer KNOWS the transactions going on the account) and the employee does no deceit if he can show he reasonably believed he could make the purchases. However there is potentially theft (dishonest appropriation of company money by making the personal purchases on the card). The police may want to be involved if there is proof of the employee's dishonesty.
RECEIPTS
On the subject of receipts, the company should use discretion over this. Sometimes receipts aren't available or illegible even if they are available. It may be worrying for the worker not to have receipts but failure not to provide receipt isn't grounds for instant dismissal or involving the police or suggesting fraud. It's just another item to add to the disciplinary agenda if such action was taken.
What I understand from the information you have provided is that a worker (an employee?) used a work credit card for purchasing "personal" items and receipts can't be provided for "other" items purchased.
PERSONAL ITEMS
If the company's policy is not to permit the use of the card for buying products for personal use (e.g. home shopping), then the worker has breached the company's policy which is potentially a breach of the terms and conditions of employment but you need to look at the terms and conditions of employment.
In these circumstances, disciplinary proceedings may be started against the employee (pursuant to what is laid down in the company's terms and conditions of employment). These proceedings may result in a written warning, or if considered an act of gross misconduct, could lead to termination of employment. But there can be no "instant" dismissal because the worker is entitled to a fair hearing and for the company to comply with law as regards wrongful and unfair dismissal.
Action can be taken to recover monies used on the corporate card. The employee may make lawful and reasonable deduction from the worker's salary.
In terms of criminal proceedings, there is no deceit by the employee (the employer KNOWS the transactions going on the account) and the employee does no deceit if he can show he reasonably believed he could make the purchases. However there is potentially theft (dishonest appropriation of company money by making the personal purchases on the card). The police may want to be involved if there is proof of the employee's dishonesty.
RECEIPTS
On the subject of receipts, the company should use discretion over this. Sometimes receipts aren't available or illegible even if they are available. It may be worrying for the worker not to have receipts but failure not to provide receipt isn't grounds for instant dismissal or involving the police or suggesting fraud. It's just another item to add to the disciplinary agenda if such action was taken.
57% 8 Votes
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Other Answers (6)
- Just like to warn you that it is not necessarily that straightforward! It would very much depend under what terms he was issued a credit card by the company.
Some companies do allow their employees to use a card for personal purchases, was it obviously stated to him that this was not acceptable?
Did the company state to him that receipts must be provided for all company purchases in order to be re-imbursable/claimable?
Did the employee sign an agreement/receive a copy of the policy as to how the card must be used?
Presumably in order to reconcile the credit card statement the employee would have had to fill out an expenses claim, and this would have to have been authorised by his line manager? If this has not been done then surely his line manager (and the accounts dept) also share a certain responsibility for allowing this to happen.
I am assuming that as the company wishes to press charges all of the above have been checked and that the company can verify that they had instructed the employee in the appropriate use of their company card.
If they have taken all reasonable precautions and the employee has knowingly abused the use of his company credit card, then the company should ask the employee to pay back any sums of money that he cannot verify with a receipt (if this is company policy) whether or not it was company/private use; and at the very least issue a written warning as to future conduct.
If it is itemized as an offence under the company's Gross Misconduct policy - then it is a sackable offence.
However, it would be very wise to speak to an employer/employee specialist legal advisor as to how to proceed, thus avoiding the chance that the employee can turn the case around into unfair/constructive dismissal and sue them!
It does happen!0% 0 Votes - You need to contact the bank first. They will be able to tell you where the purchases were made. You then need to contact the shops/suppliers in question to obtain the relevant receipts. Finally, go to the police.0% 0 Votes
- Yes the police would be interested, because it's fraud.0% 0 Votes
- Speak to the police. They will investigate and then decide if there is a case for prosecution.43% 6 Votes
- Talk to bank officials first. They'll have advice on how to proceed.0% 0 Votes
- Contact the shop keeper for receipts0% 0 Votes
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