Case Study: Handling Management Misuse of Company Issued Credit Cards

The abuse and misuse of the company credit cards happen amongst employees at any level although it is familiar for employees at higher ranks. As an engineering officer, I have noted with concern the misuse of credit cards by some managers at the higher level. The manager uses the credit card that have no dollar limit for personal gain since he has access to the cards anytime. Misuse of the credit cards mushroom since the manager believes he cannot be identified in case several other employees own company credit cards. The manager feels that he is one of the powerful people within the company and cannot be put under question in case he is found to be behind the fraud. In fact, almost all the manager’s possesses the cards; the fraud manager may think that it is not easy to identify him.

The issue is to be addressed to the other managers, and a board meeting is held to discuss the issue. The board is to decide the fate of the manager involved in the fraud. If the manager is not yet identified, but a fraud is detected, the authentication mechanism is put in place. Immediately a problem related to credit card fraud is discovered; authentication is carried out. The verification of the transaction history to ensure that the account holder is the owner of the card is done. It is also necessary to undertake a multi-possession-factor authentication by use of such technologies like smartphone challenge-response authentication and a smart watch. The technology confirms the identity of the card holder and reports any fraud immediately all a transaction is done. Out-of-band authentication is carried out through a known communication channel like a security token device or smartphone.

After identification of the manager doing the fraud, various disciplinary actions are to be done. To deal with such problems of misuse of the credit cards, as an engineering manager, it is first imperative to have an oversight to curb such behaviors. Lack of control encourages the misuse of credit cards to be a norm. As one manager, it is important to review the monthly charges on the credit card. The credit card statements are considered so that all the transactions are noted, and possible costs are deducted from the manager’s salary so as to compensate the loss. The credit card is to be withdrawn from the manager, and the number of cards issued is limited henceforth. The credit cards are eliminated in case the spending is wasteful. Elimination of the credit cards goes a long elimination of wasteful and unnecessary spending. The manager is taken through the company's written policies for the credit card use that he agreed to abide. The investigation is to be carried out immediately the fraud is detected. The manager must step aside from his position pending investigations regarding the fraud. The card is to be blocked until all the transactions done using the card are verified. The manager is to be taken through a rigorous vetting process to ascertain that he misused the funds after which he is to refund all the funds that have been misused. Because the card has been used for personal gains illegally, the manager is to face lawsuit charges since it contravenes to breaching of company laws.

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