Is using a company credit card for personal use embezzlement? | Fin out now
Do you know that using a credit card for personal use is embezzlement?. The Internal Revenue Service defines embezzlement as “the act or crime of wrongfully appropriating property that is entrusted to one’s care, custody, or control.”
Using a company credit card to make personal purchases can be considered embezzlement by some employers. Usually, the supervisor would have to approve the purchase to be legal. When someone makes a purchase with a company credit card without permission or authorization from the supervisor, they are stealing from the employer.
Only about an estimated 10% of companies permit employees to use the company credit cards for personal use; however, many companies find it difficult to monitor what happens with the card.
One example is when an employee has a family member or friend who wants to borrow the card because they do not have one of their own. For instance, the person may also want to buy groceries but does not want to carry cash, so uses the company’s card instead. In this article, we will tell you, Is using a company credit card for personal use embezzlement.
Personal use of credit cards can lead to embezzlement.
If you are not careful with your company credit card, you could find yourself being charged with embezzlement. Employers have the right to access credit card statements to see what purchases were made. Many people ask the question, can i use my company credit card for personal use? Many companies do not allow the usage of credit cards for personal use.
If they see that you bought something for personal use, this could be interpreted as embezzling. It’s best to know the rules before you start using a company credit card for personal use, or else you may end up in trouble.
It is a well-known phenomenon that employees can steal from a company by using a company credit card for personal expenses. The Internal Revenue Service found that in 86% of cases, employees who have access to their employer’s credit cards are committed to embezzlement. If you suspect an employee using company money for personal use or if you want to prevent that from happening in the future, consider an internal audit.
Credit card use is required to purchase the merchandise for the company. An internal audit may disclose instances of theft if you are using the company credit card for personal use. You can be fired for misuse of company credit card. This would be considered embezzlement, according to Canadian law. The burden of proof shifts to the employee when using a corporate credit card for personal purchases. The employee has to prove that they did not intend to commit any theft with the corporate credit card.
If you use your company credit card for personal use, an internal audit may reveal instances of theft. This is because filing for reimbursement for personal expenses is not allowed under the Code of Conduct.
The Code of Conduct also provides that employees actively cooperate with any investigation, including arranging interviews at a reasonable time and place. Employees are obligated to answer questions truthfully and completely. Using your company’s credit card for personal use can be precarious if you’re an employee.
Serious embezzlement charge
You must know what you can and cannot do with a company credit card, as the consequences of misuse can be extremely serious. If you knowingly use your company credit card for personal use, you could face a charge of embezzlement. The maximum penalty for this crime is 30 years in prison and a $5,000 fine. There are more severe penalties for this crime in some states, including life imprisonment.
A significant number of employees have been fired over the past few years for using company credit cards to purchase personal expenses. Many do not realize that it can bring a non-criminal charge against you if you use a company credit card for personal use. The charge, embezzlement, is when someone appropriates property that has been entrusted to them in their capacity as a public servant, security officer, accountant, etc.
More than likely, you know someone who has used their company credit card for personal use. It may have been an innocent mistake, but the consequences can be serious. While it is tempting to use your employer’s credit card for personal purchases that yield employee discounts, this action is considered embezzlement by law. If you are found guilty of this crime, you will face serious consequences, including jail time and fines.
Defending can cause serious penalties.
Many companies and organizations have policies to ensure that their employees use company credit cards only for legitimate business purposes. This can lead to severe consequences if the card is used for personal reasons. A credit card misuse conviction could result in a steep fine, forfeiture of assets, and long-term probation.
Many ways can lead to serious convictions when defending allegations of using the company credit card for personal use. One way is if the company has policies that allow employees to use their credit cards with proper discretion. Another way is if the employee signed an agreement that prohibits the misuse of company property.
If you are accused, you should always consult with a lawyer before making any decisions about your case. It can indeed be tempting to use your company credit card for personal expenses, but taking this temptation will inevitably lead to a serious conviction. If you are using a company credit card for personal use, you are also committing theft.
The penalties for this type of behavior can be severe and include jail time even if the company does not press charges. When you use the company credit card for personal use, you commit theft.
We hope now you are clear about is misuse of company credit card a crime? Many companies have a clause in the contract about using credit cards for personal use. It is important to read these clauses before using your credit card for anything outside of what you are authorized to do. To protect yourself from the severe penalties, you should read the company credit card policy.