Which type of fraud involves an employee submitting false employee costs for reimbursement?

The type of fraud that involves an employee submitting false employee costs for reimbursement is accurately identified as a mischaracterized expense scheme. In this scenario, employees may submit claims for expenses that are personal in nature or inflated amounts for costs that either weren't incurred or were exaggerated. This scheme allows the employee to misrepresent legitimate expenses to receive funds from their employer for non-existent business costs.

In a mischaracterized expense scheme, the crux is that the submitted expenses may appear to be legitimate on the surface but are distorted or altered in a way that misrepresents their true nature. This could include submission of receipts for personal items or services that are claimed to be for business purposes.

Understanding this distinction is fundamental in recognizing how employee reimbursements can be manipulated by an individual for personal gain, leading to financial losses for the organization. Other schemes like fictitious expense schemes involve creating entirely false expenses rather than merely mischaracterizing real ones, while payroll schemes would typically involve manipulating salary amounts or employee status. Cash larceny involves stealing cash directly from the organization, not through the reimbursement process.