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Protecting UAE SMEs: Combating Fraud in Expense Management Systems

Written by Nauman Hassan | Jan 15, 2025 11:50:48 AM

With fraud on the rise, it is only natural to seek the best-in-class solution to protect your SME. Isn’t that what every business strives for? 

In the United Arab Emirates (UAE), Small and Medium Enterprises (SMEs) are the backbone of the economy, representing the majority of businesses, therefore contributing significantly to employment and GDP. However, these enterprises face substantial challenges in managing expenses efficiently, with complex systems often leading to financial losses and increased susceptibility to fraud. From an issuer processor perspective, addressing these issues is crucial to safeguarding SMEs’ financial health and improving their operational efficiency. 

 

The expense management dilemma 

According to the Abu Dhabi SME Hub, more than one in five employees refrain from submitting their expenses regularly due to cumbersome filing processes. This inefficiency costs companies an average annual loss of AED 13,206 per employee for at least 35% of the workforce, a cost often overlooked by many businesses.  

Furthermore, poorly managed expense systems often result in lost receipts, input errors and inaccurate submissions. These issues not only drain valuable time and resources but also divert SMEs' focus away from their primary goal, growing the business. The impact on productivity and profitability is significant, underscoring the need for aggregated solutions. 

 

The hidden threat of fraud 

Beyond inefficiencies, complex expense management systems expose SMEs to an even greater threat, fraud. From  falsified expense claims to unauthorised spending, fraudulent activities can remain undetected in manual and disjointed systems for extended periods. For SMEs, lacking robust fraud detection mechanisms can lead to severe financial and reputational damage. 

 

How issuer processors can help 

Issuer processors play an important role in safeguarding SMEs against fraud while increasing expense management efficiency. Advanced technologies enable issuer processors to provide tailored solutions that mitigate risks and optimise operations. 

For example, Paymentology offers:   

  • Real-time fraud detection and prevention: Paymentology’s tools analyse transactions at the point of spend using ultra-fast, interpretable data analytics to identify and halt fraudulent activities before they escalate.  
  • Customisable fraud triggers:  The PayRule Engine empowers SMEs to configure triggers and responses for potential fraud scenarios, ensuring protection tailored to their unique needs. 

 Digital solutions for smarter expense management 

To tackle fraud and inefficiencies in expense management, SMEs in the UAE should consider adopting digital solutions that offer: 

  • Automated expense reporting: By simplifying and automating the expense submission process with platforms, SMEs can reduce errors and free up valuable employee time.
  • Real-time transaction monitoring: By utilising systems that provide real-time monitoring of transactions, SMEs can promptly detect and prevent fraudulent activities. Paymentology’s platform, for instance, enables SMEs to track spending patterns and identify anomalies, offering peace of mind through proactive fraud prevention.
  • Employee training and awareness: Educating employees on the importance of accurate expense reporting and teaching them to recognise red flags ensures a well-informed workforce. You can never go wrong with investing in your first line of defence against fraud.
  • Integration with financial systems: Ensuring that expense management tools integrate smoothly with existing financial systems facilitates accurate data flow and provides a comprehensive view of financial health, overall improving fraud monitoring.

Protecting the backbone of the economy 

As digitisation continues to rise rapidly, the risk of fraud is expected to increase. SMEs, who are often viewed as easy targets due to limited resources, must take proactive steps to protect their operations. At Paymentology, we are committed to empowering SMEs with the right tools to mitigate fraud risks while effectively managing expenses.  

Reach out to our Sales team today to learn how our next-generation solutions can safeguard your business and give you the confidence to focus on what truly matters. 

 

About Paymentology 

Paymentology is the leading next-generation issuer processor, empowering fintechs, digital banks and retail banks to effortlessly launch and manage innovative payment solutions on a global scale. The company drives greater customer choice and value through easy-to-use, integrated platforms and services that help clients to disrupt the status quo, accelerate time to market, and achieve growth. With a superior multi-cloud platform offering a vast global footprint, and enhanced real-time data, Paymentology distinguishes itself as a leader in the payments industry. Its team of payments experts, with deep local market knowledge, operates across 60 countries and 14 time zones, providing 24/7 support. Paymentology is deeply committed to expanding financial inclusion globally, changing lives and positively impacting the communities in which it operates. For more information, visithttps://www.Paymentology.com.