Transaction risk intelligence
Automated supplier statement reconciliation
Supplier risk intelligence
Managed AP recovery audit
Supplier file performance review
Forensic risk analysis
Consulting and bespoke reporting
What is invoice fraud?
Invoice fraud manipulates accounts payable into paying fake invoices or modified real invoices.
Some invoices may be real, but scammers can intercept them, changing price and payment details.
UK Finance reported that UK invoice and mandate fraud losses totalled £24.8 million in the first half of 2023 alone. With fraud attempts costing organisations as much as 5% of their revenue, how much might it cost your organisation?
How do I avoid invoice fraud?
Vigilance is necessary when it comes to fraud prevention in Procure to Pay, no matter which type.
Fraudsters are forever finding new, inventive ways to ensure their invoices enter your ERP. We recommend thorough policies and procedures, including the following:
1. Maintain the Master Supplier File
Cleanse supplier details regularly and check bank details thoroughly before you make changes.
Confirm with two parties to ensure supplier bank details are correct. We recommend removing duplicate and unused vendors monthly. Fraudsters thrive when they create confusion. An up to date master supplier file lessens that risk.
2. Monitor transactions for potential fraud.
Check for signs of invoice fraud regularly. Signs include duplicate invoices, incorrect POs, anomalous invoice pricing or goods volumes, and inconsistencies between POs.
3. Treat urgent payment requests with caution.
Fraudsters try to create a sense of urgency to stop you from questioning them. If in doubt, always query why the speed is critical, and respond to pressure with protocol.
4. Train your staff frequently.
Fraud prevention training should not only include spotting fraud signs and resisting phishing attacks. Whistleblowing is also necessary so employees know how to report an issue. Giving regular training will replenish knowledge and encourage an anti-fraud culture.
How to prevent invoice fraud with FISCAL’s software
Our P2P risk management solutions make avoiding Accounts Payable fraud easy.
FISCAL’s AI-powered software completes real-time controls, sharing fraud risks from your transactions and supplier data to your team immediately. With our enhanced algorithms and forensic-level tests, no stone is left unturned. Solve discrepancies before the payment run and prevent invoice fraud in your organisation.
Prevent invoice fraud in Accounts Payable by:
- Cleansing and maintaining the master supplier file to avoid dormant and duplicate suppliers.
- Monitoring transactions for fraud red flags including transaction spikes, incorrect amounts, PO issues, and duplicate invoices.
- Completing regular checks on your employee and supplier files in case of undisclosed conflicts of interest.
- Treating urgent payment requests with caution.
- Frequently training staff in fraud prevention best practices.
